PROBEX SCHOOL INC.
ACCOUNTING 1
ACTIVITY
On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and
closes its accounts at the end of each month. The following trial balance was prepared after one
month of operations. More information:
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No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to
PHP200.
Salaries earned by the office staff but not yet recorded or paid amounted to PHP970 by April
30.
Many clients are asked to make advance payment for legal services to be rendered in future
months. These advances are credited to the Unearned Service Revenue account once
received. During April, PHP5,020 of these advances were earned by the business.
Office supplies on hand by April 30 amounted to PHP400.
The office equipment was purchased on April 1 and is being depreciated over an estimated
useful life of 10 years with no residual value.
Instructions:
1. Prepare the adjusting entries for April 30.
2. Prepare a statement of income for April 2016
Account Title and
Explanation
Cash
Accounts Receivable
Prepaid Expenses
Supplies
Office Equipment
Accum. Deprn-Off Eqpt
Notes Payable
Interest Payable
Unearned Service Revenue
Cruz, Capital
Cruz, Withdrawal
Service Revenue
Supplies Expense
Salaries Expense
Unadjusted Trial Balance
Debit
Credit
10,060
0
7,800
1,460
26,400
0
16,000
15,020
20,000
3000
1,580
2,680
1,200
52,600
52,600