Activity 7- Completing the Accounting Cycle for a Service ProviderThe unadjusted trial balance of Lakbay Tours as of December 31, 2018 is shown below:Lakbay ToursUnadjusted Trial BalanceDecember 31, 2018Account NoAccount TitleDebitCredit101CashP441,45325,00016,0003,700102Accounts ReceivableNotes ReceivableOffice SuppliesPrepaid RentOffice EquipmentAccumulated Depreciation - Office EquipmentAccounts PayableSS & EC Premiums PayablePag-ibig Premiums PayablePhilHealth Premiums PayableWithholding Taxes Payable10310510693,000201112,000202P20,00030155,0003025333032003042003051,617306Unearned Service Revenue40,000401Solomon, Capital194,500402Solomon, Withdrawals9,600501Tours Revenue716,800Advertising ExpenseSS & EC Premiums Expense60126,00060710,897608Pag-ibig Premiums ExpensePhilHealth Premium ExpenseSalaries Expense1,1001,100609610176,00020,000611Taxes & Licenses612Utilities ExpenseTotals93,000P1,028,850 P1,028,850Ted Solomon, the owner, made an additional investment of P100,000 on March 1, 2018. On December31, 2018, the following data were accumulated for use in making the adjusting entries:a. The company received an 18% P16,000 note from a key customer dated November 16, 2018.b. The prepaid rent has a beginning balance of P54,000 representing payment made for six month'srent. During 2018, another two rent payments were made: P20,000 on June 30 and P19,000 onDecember 30. It is the policy of the lessor that rental be paid in advance for six months.c. The company bought all of its equipment on January 1, 2016. The equipment has an estimatedtotal residual value of P12,000. The company uses the straight-line method of depreciation. Hint:Determine the annual depreciation based on the total accumulated depreciation and theacquisition date.d. Salaries earned by casual employees but unpaid and unrecorded amounted to P4,000.P800 unused office supplies remain on hand.f. 3% percentage tax due on December is based on gross quarterly receipts of P103,000.8. The company received tour revenues in advance on December 1 of which 80% has been earned.e.Solomon decided to write-off P15,000 accounts receivable which has been outstanding for twoyears and the client cannot be contacted anymore.Other accounts that will be used are as follows:602 Bad Debt ExpenseDepreciation Expense - Office Equipment604 Office Supplies Expense605 Rent Expense104 Interest Receivable307 Salaries Payable603Required:1. Open T accounts for the accounts in the trial balance and in the additional list above. Enter theDecember 31 unadjusted balances.2. Journalize the adjusting entries and post to the T accounts.3. Using the Taccount balances, prepare an adjusted trial balance.4. Prepare Income statement, Statement of Changes in Owner's Equity and Balance Sheet.Journalize and post the closing entries.6. Prepare a post-closing trial balance.7. Rule and double rule the ledgers.5.

Hi student Since there are multiple subparts, we will answer only first three subparts.

The unadjusted trial balance of Lakbay Tours as of December 31, 2018 is shown below: Lakbay Tours Unadjusted Trial Balance December 31, 2018 Account No. Account Title Debit Credit 101 Cash P441,453 25,000 16,000 102 Accounts Receivable 103 Notes Receivable Office Supplies Prepaid Rent 105 3,700 106 93,000 201 Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable SS & EC Premiums Payable Pag-ibig Premiums Payable PhilHealth Premiums Payable Withholding Taxes Payable 112,000 202 P20,000 301 55,000 302 533 303 200 304 200 305 1,617 306 Unearned Service Revenue 40,000 401 Soloman, Capital 194,500 402 Solomon, Withdrawals 9,600 501 Tours Revenue 716,800 Advertising Expense SS & EC Premiums Expense 601 26,000 607 10,897 608 Pag-ibig Premiums Expense PhilHealth Premium Expense 1,100 609 1,100 176,000 20,000 610 Salaries Expense Taxes & Licenses 611 612 Utilities Expense 93,000 P1,028,850 P1,028,850 Totals Ted Solomon, the owner, made an additional investment of P100,000 on March 1, 2018. On December 31, 2018, the following data were accumulated for use in making the adjusting entries: a. The company received an 18% P16,000 note from a key customer dated November 16, 2018. b. The prepaid rent has a beginning balance of P54,000 representing payment made for six month's rent. During 2018, another two rent payments were made: P20,000 on June 30 and P19,000 on .It is the policy of the lessor that rental be paid in advance for six months. c. The company bought all of its equipment on January 1, 2016. The equipment has an estimated December 30 total residual value of P12,000. The company uses the straight-line method of depreciation. Hint: Determine the annual depreciation based on the total accumulated depreciation and the acquisition date. d. Salaries earned by casual employees but unpaid and unrecorded amounted to P4,000. e. P800 unused office supplies remain on hand. f. 3% percentage tax due on December is based on gross quarterly receipts of P103,000. g. The company received tour revenues in advance on December 1 of which 80% has been earned h. Solomon decided to write-off P15,000 accounts receivable which has been outstanding for two years and the client cannot be contacted anymore. Other accounts that will be used are as follows: 602 Bad Debt Expense 603 Depreciation Expense - Office Equipment 604 Office Supplies Expense 605 Rent Expense 104 Interest Receivable 307 Salaries Payable Required: 1. Open T accounts for the accounts in the trial balance and in the additional list above. Enter the December 31 unadjusted balances. 2. Journalize the adjusting entries and post to the T accounts. 3. Using the T account balances, prepare an adjusted trial balance.