The trial balance for Rose Balhag Cleaners appears as follows:

Rose Balhag Cleaners

Trial Balance
September 30, 2019

Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 34,000.00
Cleaning supplies 73,740.00
Land 180,000.00
Building 1,850,000.00
Accumulated depreciation- Building ₱456,000.00
Accounts payable 204,000.00
Deferred cleaning revenues 16,000.00
Mortgage payable 1,100,000.00
Balhag, capital 565,500.00
Balhag, withdrawals 100,000.00
Cleaning revenues 1,576,340.00
Salaries expense 1,013,300.00
Rental expense 60,000.00
Delivery expense 43,740.00
Interest expense 110,000.00
Other expenses 70,340.00
Totals ₱3,917,840.00 ₱3,917,840.00

The following information is available

a. A review of insurance policies showed that P6,800 is unexpired at the year-end
b. An inventory of cleaning supplies showed P12,440 on hand
c. Estimated depreciation on the building for the year is P128,000
d. Accrued interest on the mortgage payable is P10,000
e. On Sept 1, the entity signed a contract, effective immediately, with Davao City
Hospital to dry clean, for a fixed monthly charge of P4,000, the uniforms used by
doctors in surgery. The hospital paid for four months' service in advance
f. Salaries are paid on Saturdays. The weekly payroll is P25,200. Assume that Sept. 30
falls on a Thursday and the entity has a six-day pay week.
 Rose Balhag
Worksh
September

Unadjusted Trial Balance Adjusting Entries

Particulars dr cr dr
Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 34,000.00
Cleaning supplies 73,740.00
Land 180,000.00
Building 1,850,000.00
Accumulated depreciation- Building ₱456,000.00
Accounts payable 204,000.00
Deferred cleaning revenues 16,000.00 e ₱4,000.00
Mortgage payable 1,100,000.00
Balhag, capital 565,500.00
Balhag, withdrawals 100,000.00
Cleaning revenues 1,576,340.00
Salaries expense 1,013,300.00 f 16,800.00
Rental expense 60,000.00
Delivery expense 43,740.00
Interest expense 110,000.00 d 10,000.00
Other expenses 70,340.00
Totals ₱3,917,840.00 ₱3,917,840.00
Adjustments
a. Insurance expense 27,200.00
b. Cleaning supplies expense 61,300.00
c. Depreciation expense 128,000.00
d. Accrued interest expense
f. Accrued salaries expense
Totals ₱247,300.00
Net Profit (Loss)
GRAND TOTALS

Closing Entries
1. To close the revenue account
Cleaning revenues
Income summary

2. To close the expense accounts

Income summary
Salaries expense
Rental expense
 Delivery expense
Interest expense
Other expenses
Insurance expense
Cleaning supplies expense
Depreciation expense

3. To close the withdrawal account to th

Balhag, capital
Balhag, withdrawals

4. To close the income summary accoun

Income summary
Balhag, capital
 Rose Balhag Cleaners
Worksheet
September 30, 2019

Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet

cr dr cr dr cr dr cr
₱117,880.00 ₱117,880.00
264,840.00 264,840.00
₱27,200.00 a 6,800.00 6,800.00
61,300.00 b 12,440.00 12,440.00
180,000.00 180,000.00
1,850,000.00 1,850,000.00
128,000.00 c ₱584,000.00 ₱584,000.00
204,000.00 204,000.00
12,000.00 12,000.00
1,100,000.00 1,100,000.00
565,500.00 565,500.00
100,000.00 100,000.00
4,000.00 e 1,580,340.00 ₱1,580,340.00
1,030,100.00 ₱1,030,100.00
60,000.00 60,000.00
43,740.00 43,740.00
120,000.00 120,000.00
70,340.00 70,340.00

27,200.00 27,200.00
61,300.00 61,300.00
128,000.00 128,000.00
10,000.00 10,000.00 10,000.00
16,800.00 16,800.00 16,800.00
₱247,300.00 ₱4,072,640.00 ₱4,072,640.00 1,540,680.00 1,580,340.00 2,531,960.00 2,492,300.00
39,660.00 39,660.00
₱1,580,340.00 ₱1,580,340.00 ₱2,531,960.00 ₱2,531,960.00

ose the revenue account

₱1,580,340.00
ome summary ₱1,580,340.00 Income summary
ce 2 1,540,680.00 1,580,340.00 ce 1
se the expense accounts ce 4 39,660.00
1,540,680.00 1,580,340.00 1,580,340.00
ries expense 1,030,100.00
60,000.00 Balhag, capital
very expense 43,740.00 ce 3 100,000.00 565,500.00 bb
rest expense 120,000.00 39,660.00 ce 4
er expenses 70,340.00 100,000.00 605,160.00
urance expense 27,200.00 505,160.00 be
aning supplies expense 61,300.00
preciation expense 128,000.00

se the withdrawal account to the capital account

100,000.00
hag, withdrawals 100,000.00

se the income summary account to capital

39,660.00
hag, capital 39,660.00
 Post-closing Trial Balance
dr cr
₱117,880.00 Rose Balhag Cleaners
264,840.00 Income Statement
6,800.00 For the period ended September 30, 2019
12,440.00
180,000.00 Cleaning revenues
1,850,000.00 Less: Operating expenses
₱584,000.00 Salaries expense
204,000.00 Rental expense
12,000.00 Delivery expense
1,100,000.00 Interest expense
505,160.00 Other expenses
Insurance expense
Cleaning supplies expense
Depreciation expense
Net Profit (Loss)

10,000.00
16,800.00

₱2,431,960.00 ₱2,431,960.00
 Rose Balhag Cleaners Ros
Income Statement
For the period ended September 30, 2019 As of

₱1,580,340.00
Current Assets
₱1,030,100.00
60,000.00
43,740.00
120,000.00
70,340.00
27,200.00 Non-current Assets
61,300.00
128,000.00 1,540,680.00
₱39,660.00
TOTAL ASSETS

LIABILITIE

Current Liabilities

Long-term Liability

O
Balhag, capital
TOTAL LIABILITIES AND OWNER'S EQUIT
 Rose Balhag Clearners
Balance Sheet
As of September 30, 2019

ASSETS
Current Assets
Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 6,800.00
Cleaning supplies 12,440.00 ₱401,960.00

Non-current Assets
Building ₱1,850,000.00
Less: Accumulated depreciation 584,000.00 ₱1,266,000.00
Land 180,000.00 1,446,000.00
TOTAL ASSETS ₱1,847,960.00

LIABILITIES AND OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts payable ₱204,000.00
Deferred cleaning revenues 12,000.00
Accrued interest expense 10,000.00
Accrued salaries expense 16,800.00 ₱242,800.00
Long-term Liability
Mortgage payable 1,100,000.00 ₱1,342,800.00

OWNER'S EQUITY
Balhag, capital 505,160.00
TOTAL LIABILITIES AND OWNER'S EQUITY ₱1,847,960.00
 Unadjusted Trial Balance Adjusting Entries
dr cr dr
Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 34,000.00
Cleaning supplies 73,740.00
Land 180,000.00
Building 1,850,000.00
Accumulated depreciation- Building ₱456,000.00
Accounts payable 204,000.00
Deferred cleaning revenues 16,000.00 e ₱4,000.00
Mortgage payable 1,100,000.00
Balhag, capital 565,500.00
Balhag, withdrawals 100,000.00
Cleaning revenues 1,576,340.00
Salaries expense 1,013,300.00 f 16,800.00
Rental expense 60,000.00
Delivery expense 43,740.00
Interest expense 110,000.00 d 10,000.00
Other expenses 70,340.00
Totals ₱3,917,840.00 ₱3,917,840.00
Adjustments
a. Insurance expense 27,200.00
b. Cleaning supplies expense 61,300.00
c. Depreciation expense 128,000.00
d. Accrued interest expense
f. Accrued salaries expense
Totals ₱247,300.00
Net income
GRAND TOTALS

Closing Entries
1. To close the revenue account
Cleaning revenues
Income summary

2. To close the expense accounts

Income summary
Salaries expense
Rental expense
 Delivery expense
Interest expense
Other expenses
Insurance expense
Cleaning supplies expense
Depreciation expense

3 To close the withdrawal account to c

Balhag, capital
Balhag, withdrawals

4 To close the income summary account t

Income summary
Balhag, capital
 Rose Balhag Cleaners
Work Sheet
September 30, 2019

Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet

cr dr cr dr cr dr cr
₱117,880.00 ₱117,880.00
264,840.00 264,840.00
₱27,200.00 a 6,800.00 6,800.00
61,300.00 b 12,440.00 12,440.00
180,000.00 180,000.00
1,850,000.00 1,850,000.00
128,000.00 c ₱584,000.00 ₱584,000.00
204,000.00 204,000.00
12,000.00 12,000.00
1,100,000.00 1,100,000.00
565,500.00 565,500.00
100,000.00 100,000.00
4,000.00 e 1,580,340.00 ₱1,580,340.00
1,030,100.00 ₱1,030,100.00
60,000.00 60,000.00
43,740.00 43,740.00
120,000.00 120,000.00
70,340.00 70,340.00

27,200.00 27,200.00
61,300.00 61,300.00
128,000.00 128,000.00
10,000.00 10,000.00 10,000.00
16,800.00 16,800.00 16,800.00
₱247,300.00 ₱4,072,640.00 ₱4,072,640.00 1,540,680.00 1,580,340.00 2,531,960.00 2,492,300.00
39,660.00 39,660.00
₱1,580,340.00 ₱1,580,340.00 ₱2,531,960.00 ₱2,531,960.00

ose the revenue account

₱1,580,340.00
ome summary ₱1,580,340.00 Income Summary
1,540,680.00 ₱1,580,340.00
se the expense accounts ₱39,660.00
1,540,680.00
ries expense 1,030,100.00
60,000.00 Balhag capital
very expense 43,740.00 3 ce 100,000.00 565,500.00 bb
rest expense 120,000.00 39,660.00 4 ce
er expenses 70,340.00 100,000.00 605,160.00
urance expense 27,200.00 505,160.00 be
aning supplies expense 61,300.00
preciation expense 128,000.00

close the withdrawal account to capital

100,000.00
hag, withdrawals 100,000.00

se the income summary account to capital

39,660.00
hag, capital 39,660.00
 Post-closing Trial Balance
dr cr
₱117,880.00 Rose Balhag Cl
264,840.00 Income State
6,800.00 For the period ended Sep
12,440.00
180,000.00 Cleaning revenues
1,850,000.00 Less: Operating expenses
₱584,000.00
204,000.00
12,000.00
1,100,000.00
505,160.00

Net Income

10,000.00
16,800.00

₱2,431,960.00 ₱2,431,960.00
 Rose Balhag Cleaners Rose
Income Statement B
For the period ended September 30, 2019 As of Se

Cleaning revenues ₱1,580,340.00

Less: Operating expenses Current Assets
Salaries expense ₱1,030,100.00
Rental expense 60,000.00
Delivery expense 43,740.00
Interest expense 120,000.00
Other expenses 70,340.00
Insurance expense 27,200.00 Non-current Assets
Cleaning supplies expense 61,300.00
Depreciation expense 128,000.00 1,540,680.00
Net Income ₱39,660.00
TOTAL ASSETS

LIABILITIES

Current Liabilities

Long-term Liabilities

OW
Balhag, capital
TOTAL LIABILITIES AND OWNER'S EQUITY
 Rose Balhag Cleaners
Balance Sheet
As of September 30, 2019

ASSETS
Current Assets
Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 6,800.00
Cleaning supplies 12,440.00 ₱401,960.00

Non-current Assets
Building ₱1,850,000.00
Less: Accumulated Depreciation 584,000.00 1,266,000.00
Land 180,000.00 1,446,000.00
TOTAL ASSETS ₱1,847,960.00

LIABILITIES AND OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts payable ₱204,000.00
Deferred cleaning revenues 12,000.00
Accrued interest expense 10,000.00
Accrued salaries expense 16,800.00 ₱242,800.00
Long-term Liabilities
Mortgage payable 1,100,000.00 ₱1,342,800.00

OWNER'S EQUITY
Balhag, capital 505,160.00
TOTAL LIABILITIES AND OWNER'S EQUITY ₱1,847,960.00
 Rose Balhag Cleaners
Balance Sheet
As of September 30, 2019

ASSETS
Current Assets
Cash ₱117,880.00
Accounts receivable 264,840.00
Prepaid insurance 6,800.00
Cleaning supplies 12,440.00 ₱401,960.00

Non-current Assets
Building ₱1,850,000.00
Less: Accumulated depreciation- Building 584,000.00 ₱1,266,000.00
Land 180,000.00 1,446,000.00

TOTAL ASSETS ₱1,847,960.00

alhag Cleaners
ance Sheet
tember 30, 2019

LIABILITIES AND OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts payable ₱204,000.00
Deferred cleaning revenues 12,000.00
Accrued interest expense 10,000.00
Accrued salaries expense 16,800.00 ₱242,800.00
Long-term Liability
Mortgage payable 1,100,000.00 ₱1,342,800.00

OWNER'S EQUITY
Balhag, capital 505,160.00
TOTAL LIABILITIES AND OWNER'S EQUITY ₱1,847,960.00