Juliana Roberts started a beauty salon business under the name of Pretty Women.

The unadjusted trial balance as

Account Number Account Title Debit Credit

101 Cash 287,100.00
102 Accounts receivable 30,000.00
103 Salon Materials and Supplies 41,000.00
104 Prepaid Insurance 14,400.00
105 Deposit on Lease Contract 216,000.00
106 Salon Equipments 425,000.00
107 Accum. Depreciation - Salon Equipments 50,000.00
108 Office Furniture, Fixtures and Equipments 110,000.00
109 Accum. Depreciation - Office FFE 20,000.00
201 Accounts payable 30,000.00
202 Rent payable -
203 Salaries, Wages and Benefits payable -
301 Juliana Roberts, Capital 700,000.00
302 Juliana Roberts, Drawing 10,500.00
303 Income and Expense Summary -
401 Service Income 450,000.00
501 Salaries, Wages and Benefits expense 90,000.00
502 Materials, supplies and facilities expense -
503 Depreciation expense - Salon Equipment -
504 Rent expense -
505 Depreciation expense - Office FFE -
506 Insurance expense -
507 Miscellaneous expense 26,000.00
1,250,000.00 1,250,000.00

Other information for adjustments:

1 A physical count of the supplies inventory shows that worth P8,000 remain.
2 On January 2, 20x1 a one year insurance coverage premium was purchased for P14,400.
3 An additional P9,000 was earned by employees, but has not yet been paid.
4 The deposit on lease is refundable after 10 year lease contract.
5 The office furniture, fixtures and equipments were purchased on January 2, 20x0 and have estimated useful life
6 The salon equipments were purchased on January 2, 20x0 and have estimated useful life of 8 years and estima
7 Rent for the current month is payable every firstday of the following month, P30,000.

REQUIRED:
a Prepare Adjusting Entries for the month of January 31, 20x1 in Tab 24 points
1 of your excel file.
b Prepare 10-column Work Sheet in Tab 2 of your excel file. 86 points
110 points
unadjusted trial balance as of January 31, 20x1 is presented below:

d have estimated useful life of 5 years and estimated salavage value of P10,000.00
ful life of 8 years and estimated salvage value ofP25,000.
 Pretty Women (Beauty Salon)
Adjusting Entries
For the month of January 31, 20x1

Date Account Name Dr Cr

Jan-31 Materials, supplies and facilities expense 8,000
Income and Expense Summary 8,000
(To record the remaining inventories)

Jan-31 Insurance Expense 14,400

Prepaid Insurance 14,400
(To record insurance expense)

Jan-31 Salaries, Wages and Benefits expense 9,000

Salaries, Wages and Benefits payable 9,000
(To record unearned revenue from the employees)

Jan-31 Deposit on Lease Contract 216,000

Income and Expense Summary 216,000
(To record deposit on lease contract)

Jan-31 Depreciation expense - Office FFE 10,000

Accum. Depreciation - Office FFE 10,000
(To record office FFE depreciation expense)

Jan-31 Depreciation expense - Salon Equipment 25,000

Accum. Depreciation - Salon Equipments 25,000
(To record salon equip. dep. expense )

Jan-31 Rent expense 30,000

Rent payable 30,000
(To record rent expense)
 1. A physical count of the supplies inventory shows that wort

Original entry
Depreciation expense - Salon Equipment
Accum. Depreciation - Salon Equipments

Adjusting entry
Depreciation expense - Salon Equipment
Accum. Depreciation - Salon Equipments
1,200
1,200 2. On January 2, 20x1 a one year insurance coverage premium

Original entry (January 2, 20x1):

Prepaid Insurance 14,400
Cash

Adjusting entry (January 31, 20x1):

Insurance Expense 1,200
Prepaid Insurance

3. An additional P9,000 was earned by employees, but has no

2,000
2,000 Original entry
Wages expense

3,125
3,125 4. The deposit on lease is refundable after 10 year lease contr
5. The office furniture, fixtures and equipments were purchas
6. The salon equipments were purchased on January 2, 20x0
7. Rent for the current month is payable every first day of the
ies inventory shows that worth P8,000 remain.

8,000
- Salon Equipments 8,000

- Salon Equipments

r insurance coverage premium was purchased for P14,400.

14,400

1,200

ned by employees, but has not yet been paid.

dable after 10 year lease contract.

and equipments were purchased on January 2, 20x0 and have estimated useful life of 5 years and estimated salavage value of P10,000.00
purchased on January 2, 20x0 and have estimated useful life of 8 years and estimated salvage value ofP25,000.
s payable every first day of the following month, P30,000.

Depreciation (1 year) = (Cost of Asset – Residual Value)/ Estimated Useful Life (EUL)
Depreciation ( 1 month) = [(Cost of Asset – Residual Value) / EUL]12 mos

((10000-10000)/5)
salavage value of P10,000.00
 For the month ended of J

Unadjusted Trial Balance Adjusting entries

Dr Cr Dr
Balance Sheet Accounts
Cash 287,100.00
Accounts receivable 30,000.00
Salon Materials and Supplies 41,000.00
Prepaid Insurance 14,400.00
Deposit on Lease Contract 216,000.00 216,000.00
Salon Equipments 425,000.00
Accum. Depreciation - Salon Equipments 50,000.00
Office Furniture, Fixtures and Equipments 110,000.00
Accum. Depreciation - Office FFE 20,000.00
Accounts payable 30,000.00
Rent payable -
Salaries, Wages and Benefits payable -
Juliana Roberts, Capital 700,000.00
Juliana Roberts, Drawing 10,500.00

Income Statement
Income and Expense Summary -
Service Income 450,000.00
Salaries, Wages and Benefits expense 90,000.00 9,000.00
Materials, supplies and facilities expense - 8,000.00
Depreciation expense - Salon Equipment - 3,125.00
Rent expense - 30,000.00
Depreciation expense - Office FFE - 2,000.00
Insurance expense - 1,200.00
Miscellaneous expense 26,000.00

Net Income
Total 1,250,000.00 1,250,000.00 269,325.00
 Pretty Women Beauty Salon
Worksheet
For the month ended of January 31, 20x1

usting entries Adjusted Trial Balance Income Statement

Cr Dr Cr Dr Cr

287,100.00
30,000.00
41,000.00
1,200.00 14,400.00 1,200.00
432,000.00
425,000.00
3,125.00 53,125.00
110,000.00
2,000.00 22,000.00
30,000.00
30,000.00 30,000.00
9,000.00 9,000.00
700,000.00
10,500.00

224,000.00 224,000.00 224,000.00

450,000.00 450,000.00
99,000.00 99,000.00
8,000.00 8,000.00
3,125.00 3,125.00
30,000.00 30,000.00
2,000.00 2,000.00
1,200.00 1,200.00
26,000.00 26,000.00

504,675.00
269,325.00 1,519,325.00 1,519,325.00 169,325.00 674,000.00
Balance Sheet
Dr Cr

287,100.00
30,000.00
41,000.00
14,400.00 1,200.00
432,000.00
425,000.00
53,125.00
110,000.00
22,000.00
30,000.00
30,000.00
9,000.00
700,000.00
10,500.00

504,675.00
1,350,000.00 1,350,000.00