The following is the Trial Balance of ABC Services for the MONTH OF DECEMBER, 2022 Debit Credit Cash 367,000 Accounts Receivable 435,000 Prepaid Insurance 120,000 Supplies 36,000 Tools 27,000 Machineries 250,000 Accounts Payable 260,000 Unearned Revenue 150,000 Mr. Cruz, Capital 628,800 Service Income 216,000 Salaries Expense 12,000 Utilities Expense 7,800 Total 1,254,800 1,254,800 Additional information: 1. Insurance for 1 year was bought on Septermber 1 of the current year. 2. Advance payment for laundry services for 3 months was made on November 30. 3. Salaries of P12,000 are paid on the 5th and 25th of each month. 4. Machineries has an estimated useful life of 4 years with a salvage value of P10,000.
The following is the Trial Balance of ABC Services for the MONTH OF DECEMBER, 2022 Debit Credit Cash 367,000 Accounts Receivable 435,000 Prepaid Insurance 120,000 Supplies 36,000 Tools 27,000 Machineries 250,000 Accounts Payable 260,000 Unearned Revenue 150,000 Mr. Cruz, Capital 628,800 Service Income 216,000 Salaries Expense 12,000 Utilities Expense 7,800 Total 1,254,800 1,254,800 Additional information: 1. Insurance for 1 year was bought on Septermber 1 of the current year. 2. Advance payment for laundry services for 3 months was made on November 30. 3. Salaries of P12,000 are paid on the 5th and 25th of each month. 4. Machineries has an estimated useful life of 4 years with a salvage value of P10,000.
The following is the Trial Balance of ABC Services for the MONTH OF DECEMBER, 2022 Debit Credit Cash 367,000 Accounts Receivable 435,000 Prepaid Insurance 120,000 Supplies 36,000 Tools 27,000 Machineries 250,000 Accounts Payable 260,000 Unearned Revenue 150,000 Mr. Cruz, Capital 628,800 Service Income 216,000 Salaries Expense 12,000 Utilities Expense 7,800 Total 1,254,800 1,254,800 Additional information: 1. Insurance for 1 year was bought on Septermber 1 of the current year. 2. Advance payment for laundry services for 3 months was made on November 30. 3. Salaries of P12,000 are paid on the 5th and 25th of each month. 4. Machineries has an estimated useful life of 4 years with a salvage value of P10,000.
Transcribed Image Text:The following is the Trial Balance of ABC Services for the MONTH OF DECEMBER, 2022.
Debit
Credit
Cash
367,000
Accounts Receivable
435,000
Prepaid Insurance
120,000
Supplies
36,000
Tools
27,000
Machineries
250,000
Accounts Payable
260,000
Unearned Revenue
150,000
Mr. Cruz, Capital
628,800
Service Income
216,000
Salaries Expense
12,000
Utilities Expense
7,800
Total
1,254,800
1,254,800
Additional information:
1. Insurance for 1 year was bought on Septermber 1 of the current year.
2. Advance payment for laundry services for 3 months was made on November 30.
3. Salaries of P12,000 are paid on the 5th and 25th of each month.
4. Machineries has an estimated useful life of 4 years with a salvage value of P10,000.
Prepare the adjusting entries.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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