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a. A review of the insurance policies showed that P4,000 had expired at the end ofthe period.Insurance Expense 4,Prepaid Insurance 4,To record used portion of insuranceb. An inventory of supplies revealed a balance of P8,350 were still unused.Supplies Expense 66,Parlor Supplies 66,To record the used...

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a. A review of the insurance policies showed that P4,000 had expired at the end of the period. Insurance Expense 4,000 Prepaid Insurance 4,000 To record used portion of insurance b. An inventory of supplies revealed a balance of P8,350 were still unused. Supplies Expense 66,650 Parlor Supplies 66,650 To record the used portion of parlor supplies c. Estimated depreciation on the equipment for the year is P25,000 Depreciation Expense 25,000 Accumulated Depreciation 25,000 To record equipment depreciation d. Accrued interest on the loans payable is P8,000. Interest Expense 8,000 Interest Payable 8,000 To record unpaid interest from loan e. On Dec. 1, the entity signed a contract with an event organizer in Davao city which is effective immediately, to be the official hair dresser and make-up artist in all events sponsored by the organizer for P50,000. The organizer paid for five months service in advance 10,000 Unearned Revenue 10,000 Service Income To record services earned at the end of accounting period f. Salaries are paid on Saturdays. The weekly payroll is P15,000. Assume that Sept. 30 falls on a Thursday and the entity has a six-day pay week. No adjustments are made since the end of accounting period is not on Sept. 30. Thus, Charisma Beauty Parlor can still pay the unpaid salaries during the next month. The final salaries expense recorded for the period is P550,000, and no accrued salaries expense was recorded nor recognized prior to the making of the unadjusted trial balance.

Charisma Beauty Parlor Worksheet Dec. 31, 2019

Cash Accounts Receivable

Unadjusted Trial Balance Dr Cr 18696 0 65000

Prepaid Insurance

12000

Parlor Supplies

75000 58000 0

Equipment Accumulated Depreciation Equipment Accounts Payable

Interest Expense Other Expense TOTAL TOTAL

8350 580000 75000 13000

100 00

40000 250000 250000 50000

11803 00 55000 0 72000 22000 11000 0 70340

100 00

1190300 550000 72000 22000

800 0

118000 70340

400 0 666 50 250 00

Insurance Expense Supplies Expense Depreciation Expense

4000 66650 25000 800 0

Interest Payable TOTAL NET PROFIT GRAND TOTALS

8000

250 00

50000

Service Income

Adjusted Trial Balance Dr Cr 186960 65000

400 0 666 50

50000 25000 0 25000 0

Loans Payable

Salaries Expense Rent Expense Transportation Expense

ADJUSTME NTS Dr Cr

50000 13000

Unearned Revenue

Charisma Capital Charisma Withdrawal

RE F

17933 00

17933 00

8000 1826300

1826300...