The preliminary Trial Balance of Twice Printing Shop for the year ended December 31, 200B, the
end of its accounting period is shown below.
PRELIMINARY TRIAL BALANCE
Cash
P 37,500
Accounts Receivable
28,000
Notes Receivable
1,000
Furniture and Fixtures
34,500
Printing Equipment
220,000
Accounts Payable
26,500
Loan Payable
58,000
Notes Payable
3,000
Twice, Capital
200,000
Twice, Drawing
5,000
Service Income
150,000
Rental Income
8,000
Salaries Expense
32,000
Supplies Expense
60,000
Utilities Expense
10,000
Advertising Expense
15,500
Miscellaneous Expense
2,000
Adjusting Entries:
1. Bad Debts (impairment loss), P500
Debit Bad Debts P500
Credit Allowance for Bad Debts P500
2. Depreciation on the furniture and fixture is estimated to be P 1,200.
Debit Depreciation – Furniture and Fixture P1,200
Credit Accumulated Depreciation – Furniture and Fixture
P1,200
3. The Printing equipment should be depreciated by 10%.
Debit Depreciation – Printing Equipment P22,000
Credit Accumulated Depreciation – Printing Equipment
P22,000
