GRACE CORPORATION

Proposed Adjusting Journal Entry

December 31, 2004

WP Ref ACCOUNT TITLE

Advances to employees
Cash Short and Over
To record advances to employees

Cash Short and Over

Petty Cash Fund
To record shortage between petty cash balance and actual coins and currencies

Miscellaneous Expense
Cash in Bank
To record service charge by the bank

Cash in Bank
Discount on Notes Payable
Notes Payable
To record proceeds of note discounted at 12%

Cash in Bank
Loss on Discount
Notes Receivable
To record the proceeds of note collected by the bank less service charge

Cash in Bank
Accounts Receivable
To record undeposited checks

Marketable Securities
Gain on Sale of Marketable
To record gain on holding marketable securities.

Marketable Securities
Gain on Sale of Marketable Securities
To record gain on sale of securities.

Investment in Time Deposits

Marketable Securities
To record Investment in time deposits.
Marketable Securities
Gain on Holding of Marketable Securities
To record gain on holding marketable securities in PLDT company.

Marketable Securities
Gain on Holding of Marketable Securities
To record gain on holding marketable securities in San Miguel.

Loss on Holding Marketable Securities

Marketable Securities
To record loss in holding marketable securities in Philex Mining.

Loss on Holding Marketable Securities

Marketable Securities
To record loss in holding marketable securities in Omico.

Sales
Accounts Receivable
Adjusting TB balance to equal total balance per subsidiary ledger

Cash
Accounts Receivable
Collection of accounts receivable per OR # 118

Accounts Receivable
Output Tax
Sales
Recording of sales per sales invoice # 1264

Cash
Accounts Receivable
Collection of accounts receivable per OR # 119

Accounts Receivable
Output Tax
Sales
Recording of sales per sales invoice # 1265

Cash
Accounts Receivable
Collection of accounts receivable per OR # 120

Accounts Receivable
Customer Credit Balances
Reclasssification of accounts receivable credit balance
Accounts Receivable
Output Tax
Sales
Recording of sales per sales invoice # 1266

Cash
Accounts Receivable
Collection of accounts receivable per OR # 121

Cash
Accounts Receivable
Collection of accounts receivable per OR # 122

Sales
Output Tax
Sales Discount
Customer Credit Balance

Accounts Receivable
Sales
Output Tax

Allowance for Doubtful Accounts

Bad Debts Expense
To correct the balance of the allowance account

Accrued Interest Receivable

Interest Income
To Correct the Balance of Interest Receivable

Input VAT
Inventory

Purchases
Input VAT
Acounts Payable-Genius Paper Products
To record the unrecorded purchase

Purchases
Input VAT
Acounts Payable - Arboleda Company
To record the unrecorded purchase

Cost of Goods Sold

Inventory
To record unrecorded sales made to Eagle Contractors
Cost of Goods Sold
Inventory
To record unrecorded sales made to Dynasty Construction

Cost of Goods Sold

Inventory
To record unrecorded sales made to Dynasty Construction

Retained Earnings
Depreciation Expense
Accumulated Depreciation
To correct depreciation recorded for Building for the current and prior per

Retained Earnings
Accumulated Depreciation
To correct depreciation recorded for Furniture and Fixture for the prior pe

Accumulated Depreciation
Depreciation Expense
To correct depreciation recorded for Transportation Equipment for the cu

Retained Earnings
Depreciation Expense
Accumulated Depreciation
ORATION

DEBIT CREDIT

2,800.00
2,800.00

296.00
296.00
ual coins and currencies

2,500.00
2,500.00

7,900,000.00
2,100,000.00
10,000,000.00

490,000.00
10,000.00
500,000.00
ss service charge

1,133,960.00
1,133,960.00

500,000.00
500,000.00

1,130,000.00
1,130,000.00

6,500,000.00
6,500,000.00
 316,000.00
316,000.00
s in PLDT company.

80,000.00
80,000.00
s in San Miguel.

700,000.00
700,000.00
in Philex Mining.

1,781,000.00
1,781,000.00

168,366.00
168,366.00

484,000.00
484,000.00

165,550.00
15,050.00
150,500.00

165,550.00
165,550.00

186,250.00
16,931.82
169,318.18

186,250.00
186,250.00

50,000.00
50,000.00
232,000.00
21,090.91
210,909.09

93,750.00
93,750.00

204,475.00
204,475.00

1,363.64
136.36
4,059.50
5,559.50

11.00
10.00
1.00

353,060.33
353,060.33

60,309.74
60,309.74

71,641.44
71,641.44

225,223.21
27,026.79
252,250.00

138,928.57
16,671.43
155,600.00

103,750.00
103,750.00
 125,600.00
125,600.00

160,000.00
160,000.00

275,000.00
2,008,403.36
2,283,403.36
ding for the current and prior periods.

210,500.00
210,500.00
niture and Fixture for the prior periods.

600,000.00
600,000.00
nsportation Equipment for the current and prior periods.

175,416.67
5,000.00
170,416.67