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Practice Exercise - Adjusting Entries Worksheet

Based on the trial balance and additional information provided, the document summarizes the financial position of Happy and Healthy as of October 31, 2020. It includes a worksheet outlining adjusting entries needed to account for depreciation, prepaid expenses, unearned revenue, and other accruals. The adjustments will be recorded in a general journal and reflected in the adjusted trial balance.

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Rhea Rocha Alfonso
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3K views9 pages

Practice Exercise - Adjusting Entries Worksheet

Based on the trial balance and additional information provided, the document summarizes the financial position of Happy and Healthy as of October 31, 2020. It includes a worksheet outlining adjusting entries needed to account for depreciation, prepaid expenses, unearned revenue, and other accruals. The adjustments will be recorded in a general journal and reflected in the adjusted trial balance.

Uploaded by

Rhea Rocha Alfonso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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HAPPY & HEALTHY

TRIAL BALANCE
OCTOBER 31, 2020
Amounts in Philippine Peso

Dr Cr
Cash 811,900.00
Accounts Receivable 60,000.00
Office Supplies 2,500.00
Prepaid Insurance 3,600.00
Prepaid Rent 60,000.00
Equipment 350,000.00
Accounts Payable 2,000.00
Unearned Consultancy Fees 55,000.00
Utilities Payable 5,200.00
Loans Payable 300,000.00
Maayo, Capital 770,000.00
Maayo, Personal 50,000.00
Consultancy Fees 267,500.00
Advertising Expense 20,000.00
Rent Expense 12,000.00
Salaries Expense 20,000.00
Utilities Expense 5,200.00
Office Supplies Expense 4,500.00
Total 1,399,700.00 1,399,700.00

Based on the Trial Balance for Happy and Healthy prepared on October 1, 2020 as well as on the additional information for ad
presented below, prepare the following:
1. Adjusting journal entries at the end of the month, October 31. Record your adjusting journal entries in the attached gene
2. Worksheet

Additional Information for Adjustment:


The equipment invested by the owner has an estimated remaining useful life of 5 years wit
1 value of P20,000. The fair valueof this equipment is P170,000.

The additional equipment purchased on October 1 has an estimated useful life of 4 years w
2 of P12,000.

3 One month insurance has expired.

4 One month interest on the Metrobank loan has been accrued. The annual interest rate on

75% of the advanced payment received from customers has already been earned during th
5 October.
6 3% of the Accounts Receivable balance is estimated to be uncollectible.

7 Utility bills received but not yet paid as at October 31, P3,500.
tional information for adjustment

es in the attached general journal.

useful life of 5 years with and a salvage

d useful life of 4 years with a salvage value

annual interest rate on the loan is 10%.

y been earned during the month of


tible.
General Journal Page 3

Date Particulars f Dr Cr

General Journal Page 2

Date Particulars f Dr Cr
General Journal Page 3

Date Particulars f Dr Cr
HAPPY & HEALTHY
WORKSHEET
FOR THE MONTH ENDED OCTOBER 31, 2020
AMOUNTS IN PHILIPPINE PESO

Unadjusted Trial Balance Adjustments Adjusted Trial Balance


Dr Cr Dr Cr Dr
Cash
Accounts Receivable
Allowance for Bad Debts
Office Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Consultancy Fees
Interest Payable
Utilities Payable
Salaries Payable
Loans Payable
Maayo, Capital
Maayo, Personal
Consultancy Fees
Depreciation Expense
Interest Expense
Insurance Expense
Advertising Expense
Rent Expense
Salaries Expense
Utilities Expense
Office Supplies Expense
Bad Debts Expense
Total

Total
Statement of Financial
Adjusted Trial Balance Statement of Income Position
Cr Dr Cr Dr Cr

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