The Midoriya Security Services began operation on January 1, 2022. At the end of the first year of operations, the unadjusted trial balance shows the following:
Midoriya Security Services
Unadjusted Trial Balance
December 31, 2022
Debit
Credit
Cash
P 12, 400
Accounts Receivable
3, 200
Prepaid Insurance
3, 600
Automobiles
58, 000
Notes Payable
P 45, 000
Unearned Revenue
2, 500
Midoriya, Capital
18, 000
Service Revenue
84, 000
Salaries expense
57, 000
Repair expense
6, 000
Gas and oil expenses
9, 300
TOTAL
P 149, 500
P 149, 500
Additional information:
Services provided but unbilled P2, 500 at December 31.
Insurance coverage began January 1 under a 2- year policy.
Automobile depreciation is P15, 000 for the year.
Interest of P5, 4000 accrued on notes payable for the year.
P1, 000 of the unearned fees has been earned.
Driver’s salaries total P500 per day. At December 31, 3 days salaries are unpaid.
Repairs to automobiles of P650 have been incurred, but bills have not been received prior to December 31. (Use accounts payable)