#1-Illustrative Problem
#1-Illustrative Problem
Debit Credit
1 Doubtful account 4900
Allowance for doubtful accounts 4900
4,900 4,900
1)4,900 4,900 4,900
10, 000 10,000
200 200
450 450
4) 450 450 450
7,500 7,500 7,500
5) 7,500 7,500
2,250 2,250
6) 2,250 2,250 2,250
7) 750 750 750
8) 130 130 130
26,180 514,830 514,830 180180 290450 334,650 224380
110,270 110,270
290450 290450 334,650 334650
Carla Auto Repair Shop
Income Statement
For the Period Ended December 31, 2019
Revenue:
Repair Income ₱ 275,000
Other Operationg income (note 1) 15,450
Expenses:
Rent Expense ₱ 55,000
Utilities Expense 46,750
Salaries Expense 45,000
Depreciation Expense (note 2) 9,750
other Expense (note 3) 22,650 -179180
Interest Expense -1,000
Profit for the period Ended ₱ 110,270.00
Note 1: Other Income
Referral Income ₱ 15,000
Interest Income 450
Total ₱ 15,450
ASSETS
Current Assets:
Cash (Note 1) ₱ 70,000
Trade and Other Receivable (Note 2) 74,550
Prepaid Expenses (Note 3) 5,200
Total 149,750
Non-Current Assets:
Property & Equipment (Note 4) 165,250
Ttal Assets 315,000
32,850
-5,000
50,000 77,850
-30,000
100,000
70,000
Carla Auto Repair Shop
Closing Entries
December 31, 2019
Cash 25,000
Cash In Bank 45,000
Accounts Receivable 49,000
Allowance for Bad Debts 4,900
Notes Receivable 30,000
Interest Receivable 450
Prepaid Insurance 5,000
Prepaid Supplies 200
Machinery & Equipment 150,000
Accumulated Depreciation - Machinery & Equipment 7,500
Furniture & Fixtures 25,000
Accumulated Depreciation- Furniture & Fixtures 2,250
Accounts Payable 26,000
Notes Payable 50,000
Interest Payable 750
Taxes Payable 130
Carla, Capital 238,120
Totals 329,650 329,650
Carla, Capital Debit Credit Balance