Entity C, a service business, started operations in 20x1. The following were the transactions during the year: 1. The owner provided an initial capital of P2,000,000 to the business. 2. The business acquired office equipment for P800,000 cash on

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Entity C, a service business, started operations in 20x1. The following were the transactions during the year: 1. The owner provided an initial capital of P2,000,000 to the business. 2. The business acquired office equipment for P800,000 cash on January 1, 20x1. The equipment has a useful life of 10 years. 3. The business paid two years' rent in advance amounting to P720,000 on January 1, 20x1. Entity C uses the asset method in recording prepayments. 4. Total service fees billed to clients amounted to P2,900,000, on account. 5. Total payments for supplies expense amounted to P190,000. 6. Total payments for utilities expense amounted to P260,000. 7. Total payments for salaries expense amounted to P1,900,00. 8. Total collections on accounts receivable amounted to P 2,700,00. Requirements: a. Provide the journal entries. b. Post the entries to the ledger. c. Prepare the unadjusted trial balance, d. Provide the adjusting entries. e. Complete the worksheet up to post-closing trial balance. f. Prepare the closing entries. g. Prepare the balance sheet and income statement.

• Expert Answer

To address your requirements let s go step by step through the accounting process for Entity C a Journal Entries 1 Initial capital contribution by the owner Cash 2 000 000 Capital 2 000 000 2 Acquisit View the full answer