The trial balance of Ty’s business which started only on November 1, 2017 appears next page
with the following information:
a. Computer system has a useful life of 5 years after which scrap value will be P5,000.
b. The office equipment has a useful life of 5 years. Scrap value will be P20,000.
c. Supplies unused amounted to P500.
d. Revenue includes P7,500 already collected but not due for consultancy until 2019.
e. December utility bills for P5,000 were received only on January 2019.
f. Salaries have not been paid for P15,000 with payroll deductions.
Business Solution Company
Trial Balance
December 31, 2018
Account Title Debit Credit
Cash on Hand P9,730
Cash in Bank 40,000
Accounts Receivable 6,000
Computer Supplies 1,420
Computer System 20,000
Office Equipment 80,000
5% 30-day note issued December 15 45,000
Ty, Capital 100,000
Ty, Drawings 3,000
Computer Fees Revenue 33,400
Advertising Expense 1,500
Repairs Expense 1,750
Salaries Expense 15,000
Total P178,400 P178,400
a) Prepare the adjusting entries (6 pts)
b) Prepare a 10-column working paper. (47 pts)