Required: Pepare Adjusting Entries and Adjusted Trial

Balance Using a worksheet.

Bala Kajan Car Repair Shop

Unadjusted Trial Balance
31-Dec-18

Accounts Debit Credit

Cash in Bank ₱ 50,000.00
Accounts Receivable 10,000.00
Estimated Doubtful Accounts ₱ 500.00
Supplies Inventory 5,000.00
Office Equipment 25,000.00
Accounts Payable 24,500.00
B. Kajan, Capital 150,000.00
Service Income 45,000.00
Salaries Expense 18,000.00
Rent Expense 22,000.00
Total ₱ 175,000.00 ₱ 175,000.00

Adjusting Entries:
a. On October 1, 2018, Bala Kajan collected P 15,000 from customer representing
an advance collection for one year. It used Income Method in recording the
transaction.
b. On October 1, 2018, Bala Kajan paid P 22,000 representing an advance payment
to building rental for one year. It used Expense Method in recording the
transaction.
c. Estimated Doubtful Accounts should be increased by 1% of the outstanding
Accounts Receivable.

d. On October 1, 2018, the office acquired Office equipment worth P 20,000 with a
useful life of 5 years.