Based on the given information below, prepare the following: 1. Closing Entries 2. Post-Closing Trial Balance 3. Reversing Entries Happy Valley Worksheet (Unadjusted to Adjusted TB omitted) For the month ended March 31, 2021 Statement of Income Statement of Financial Position Dr Cr Dr Cr Cash on Hand 87,904.00 Cash in Bank 2,114,640.00 Accounts Receivable 35,000.00 Allowance for Bad Debts 1,750.00 Notes Receivable 4,000.00 Interest Receivable 40.00 Amusement Rides 2,400,000.00 Accumulated Depreciation - Amusement Rides 18,000.00 Electronic Equipment 80,896.00 Accumulated Depreciation - Electronic Equipment 2,136.00 Furniture and Fixtures 24,000.00 Accumulated Depreciation - Furniture and Fixtures 360.00 Accounts Payable 15,400.00 Notes Payable 80,000.00 Interest Payable 1,600.00 SS Premiums Payable 2,880.00 EC Premiums Payable 64.00 Philhealth Premiums Payable 1,280.00 Pag-Ibig Premiums Payable 960.00 Withholding Taxes Payable 3,760.00 Utilities Payable 2,400.00 Mortgage Payable 400,000.00 Masaya, Capital 4,200,000.00 Masaya, Drawing 7,500.00 Ticket Sales 44,960.00 Rental Income 89,600.00 Interest Income 40.00 Advertising Expense 16,000.00 Salaries Expense 48,000.00 EC Premium Expense 64.00 Pag-Ibig Premium Expense 480.00 Philhealth Premium Expense 640.00 SS Premium Expense 1,920.00 Rent Expense 8,000.00 Taxes and Licenses Expense 1,460.00 Utility Expense 10,800.00 Interest Expense 1,600.00 Bad Debts Expense 1,750.00 Depreciation Expense 20,496.00 Total 111,210.00 134,600.00 4,753,980.00 4,730,590.00 Net Income 23,390.00 23,390.00 Total 134,600.00 134,600.00 4,753,980.00 4,753,980.00 Additional Information: This is the company's 1st month of operations. The Notes Receivable is a 90-day note. The Notes Payable is a 1-year note maturing March 18, 2021. It was issued to acquire the Electronic Equipment. The Mortgage Payable matures on March 3, 2026. The Furniture and Fixtures was acquired by paying cash of P8,600 and the balance on the account (Accounts Payable of P15,400) GENERAL JOURNAL Date Particulars f Dr Cr Mar 31 EC Premium Expense 64.00 SS Premium Expense 480.00 Philhealth Premium Expense 640.00 Pag-Ibis Premium Expense 1,920.00 EC Premiums Payable 64.00 SS Premiums Payable 480.00 Philhealth Premiums Payable 640.00 Pag-Ibig Premiums Payable 1,920.00 Accrual for employer's share on payroll taxes. Depreciation Expense 20,496.00 Accumulated Depreciation - Amusement Rides 18,000.00 Accumulated Depreciation - Electronic Equipment 2,136.00 Accumulated Depreciation - Furniture and Fixtures 360.00 Depreciation expense for the month. Bad Debts Expense 1,750.00 Allowance for Bad Debts 1,750.00 Bad Debts Expense for the month. Interest Expense 1,600.00 Interest Payable 16,000.00 Accrued interest on mortgage and notes Payable Interest Receivable 40.00 Interest Income 40.00 Accrued interest on Notes Receivable. Utilities Expense 2,400.00 Utilities Payable 2,400.00

Based on the given information below, prepare the following: 1. Closing Entries 2. Post-Closing Trial Balance 3. Reversing Entries Happy Valley Worksheet (Unadjusted to Adjusted TB omitted) For the month ended March 31, 2021 Statement of Income Statement of Financial Position Dr Cr Dr Cr Cash on Hand 87,904.00 Cash in Bank 2,114,640.00 Accounts Receivable 35,000.00 Allowance for Bad Debts 1,750.00 Notes Receivable 4,000.00 Interest Receivable 40.00 Amusement Rides 2,400,000.00 Accumulated Depreciation - Amusement Rides 18,000.00 Electronic Equipment 80,896.00 Accumulated Depreciation - Electronic Equipment 2,136.00 Furniture and Fixtures 24,000.00 Accumulated Depreciation - Furniture and Fixtures 360.00 Accounts Payable 15,400.00 Notes Payable 80,000.00 Interest Payable 1,600.00 SS Premiums Payable 2,880.00 EC Premiums Payable 64.00 Philhealth Premiums Payable 1,280.00 Pag-Ibig Premiums Payable 960.00 Withholding Taxes Payable 3,760.00 Utilities Payable 2,400.00 Mortgage Payable 400,000.00 Masaya, Capital 4,200,000.00 Masaya, Drawing 7,500.00 Ticket Sales 44,960.00 Rental Income 89,600.00 Interest Income 40.00 Advertising Expense 16,000.00 Salaries Expense 48,000.00 EC Premium Expense 64.00 Pag-Ibig Premium Expense 480.00 Philhealth Premium Expense 640.00 SS Premium Expense 1,920.00 Rent Expense 8,000.00 Taxes and Licenses Expense 1,460.00 Utility Expense 10,800.00 Interest Expense 1,600.00 Bad Debts Expense 1,750.00 Depreciation Expense 20,496.00 Total 111,210.00 134,600.00 4,753,980.00 4,730,590.00 Net Income 23,390.00 23,390.00 Total 134,600.00 134,600.00 4,753,980.00 4,753,980.00 Additional Information: This is the company's 1st month of operations. The Notes Receivable is a 90-day note. The Notes Payable is a 1-year note maturing March 18, 2021. It was issued to acquire the Electronic Equipment. The Mortgage Payable matures on March 3, 2026. The Furniture and Fixtures was acquired by paying cash of P8,600 and the balance on the account (Accounts Payable of P15,400) GENERAL JOURNAL Date Particulars f Dr Cr Mar 31 EC Premium Expense 64.00 SS Premium Expense 480.00 Philhealth Premium Expense 640.00 Pag-Ibis Premium Expense 1,920.00 EC Premiums Payable 64.00 SS Premiums Payable 480.00 Philhealth Premiums Payable 640.00 Pag-Ibig Premiums Payable 1,920.00 Accrual for employer's share on payroll taxes. Depreciation Expense 20,496.00 Accumulated Depreciation - Amusement Rides 18,000.00 Accumulated Depreciation - Electronic Equipment 2,136.00 Accumulated Depreciation - Furniture and Fixtures 360.00 Depreciation expense for the month. Bad Debts Expense 1,750.00 Allowance for Bad Debts 1,750.00 Bad Debts Expense for the month. Interest Expense 1,600.00 Interest Payable 16,000.00 Accrued interest on mortgage and notes Payable Interest Receivable 40.00 Interest Income 40.00 Accrued interest on Notes Receivable. Utilities Expense 2,400.00 Utilities Payable 2,400.00

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.4BE

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Question

Based on the given information below, prepare the following:

1. Closing Entries

2. Post-Closing Trial Balance

3. Reversing Entries

Happy Valley

Worksheet (Unadjusted to Adjusted TB omitted)

For the month ended March 31, 2021

	Statement of Income	Statement of Financial Position
	Dr	Cr	Dr	Cr
Cash on Hand			87,904.00
Cash in Bank			2,114,640.00
Accounts Receivable			35,000.00
Allowance for Bad Debts				1,750.00
Notes Receivable			4,000.00
Interest Receivable			40.00
Amusement Rides			2,400,000.00
Accumulated Depreciation - Amusement Rides				18,000.00
Electronic Equipment			80,896.00
Accumulated Depreciation - Electronic Equipment				2,136.00
Furniture and Fixtures			24,000.00
Accumulated Depreciation - Furniture and Fixtures				360.00
Accounts Payable				15,400.00
Notes Payable				80,000.00
Interest Payable				1,600.00
SS Premiums Payable				2,880.00
EC Premiums Payable				64.00
Philhealth Premiums Payable				1,280.00
Pag-Ibig Premiums Payable				960.00
Withholding Taxes Payable				3,760.00
Utilities Payable				2,400.00
Mortgage Payable				400,000.00
Masaya, Capital				4,200,000.00
Masaya, Drawing			7,500.00
Ticket Sales		44,960.00
Rental Income		89,600.00
Interest Income		40.00
Advertising Expense	16,000.00
Salaries Expense	48,000.00
EC Premium Expense	64.00
Pag-Ibig Premium Expense	480.00
Philhealth Premium Expense	640.00
SS Premium Expense	1,920.00
Rent Expense	8,000.00
Taxes and Licenses Expense	1,460.00
Utility Expense	10,800.00
Interest Expense	1,600.00
Bad Debts Expense	1,750.00
Depreciation Expense	20,496.00
Total	111,210.00	134,600.00	4,753,980.00	4,730,590.00
Net Income	23,390.00			23,390.00
Total	134,600.00	134,600.00	4,753,980.00	4,753,980.00

Additional Information:

This is the company's 1st month of operations.

The Notes Receivable is a 90-day note.

The Notes Payable is a 1-year note maturing March 18, 2021. It was issued to acquire the Electronic Equipment.

The Mortgage Payable matures on March 3, 2026.

The Furniture and Fixtures was acquired by paying cash of P8,600 and the balance on the account (Accounts Payable of P15,400)

GENERAL JOURNAL

Date	Particulars	f	Dr	Cr

Mar 31	EC Premium Expense		64.00
	SS Premium Expense		480.00
	Philhealth Premium Expense		640.00
	Pag-Ibis Premium Expense		1,920.00
		EC Premiums Payable		64.00
		SS Premiums Payable		480.00
		Philhealth Premiums Payable		640.00
		Pag-Ibig Premiums Payable		1,920.00
	Accrual for employer's share on payroll taxes.

	Depreciation Expense		20,496.00
		Accumulated Depreciation - Amusement Rides		18,000.00
		Accumulated Depreciation - Electronic Equipment		2,136.00
		Accumulated Depreciation - Furniture and Fixtures		360.00
	Depreciation expense for the month.

	Bad Debts Expense		1,750.00
		Allowance for Bad Debts		1,750.00
	Bad Debts Expense for the month.

	Interest Expense		1,600.00
		Interest Payable		16,000.00
	Accrued interest on mortgage and notes Payable

	Interest Receivable		40.00
		Interest Income		40.00
	Accrued interest on Notes Receivable.

	Utilities Expense		2,400.00
		Utilities Payable		2,400.00

General Ledger
CASH ON HAND
101
Date
f
Dr
Date
Cr
Payment for freight on
Mar 1
GJ1
50,000.00 Mar 3
GJ1
Equipment
896.00
Investment
Collection of account:
12
Wesleyan University
10,000.00
10
Payment for billboard ads
16,000.00
Collection of account:
13 GJ2
International School
10,000.00
15 GJ2
Transfer to Cash in Bank
39,300.00
Cash receipts from
14
2,560.00
24 GJ3
Taxes and Licenses
1,460.00
customers
Cash receipts from
17
customers
20,000.00
Collection of account: St.
18
Michael College
7,000.00
Collection of account:
20
International School
3,000.00
Collection of account: St.
26
Michael College
10,000.00
Collection of account:
27
Wesleyan University
6,000.00
Cash receipts from
30
27,000.00
145,560.00
87,904.00
customers
57,656.00
CASH IN BANK
102
Date
Dr
Date
f
Cr
Purchase of Amusement
3,950,000.00 Mar 1
2,000,000.00
Mar 1
GJ1
investment
GJ1
rides
Purchase of Furniture and
3
investment
200,000.00
10
Fixtures
8,600.00
Transfer from Cash on
15 GJ2
Hand
39,300.00
16 GJ2
Payment for Salaries
21,920.00
25 GJ3
Payment for Utilities
8,400.00
28
Payment for Rent
8,000.00
31
Payment for Salaries
20,240.00
31
Withdrawal
7,500.00
4,189,300.00
2,074,660.00
2,114,640.00

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