Maria Jasmine began business two years ago on January 1, 2007 leasing the basement of Jaka Towers. The building tenants are her regular customers, come of them paying in advance. T he following are data available on December 31, 2008:
Salary of casual employee in the amount of P4,000 has been incurred as of December 31, 2008, but remains unpaid.
A count of the office supplies showed P1.400 remaining on hand as at December 31.
Two months parking fees were received in advance from five tenants on December 1. 2008.
Maria Jasmine made some improvements on the basement building on January 1, 2007. Her contract runs for ten years.
The company took out a twelve-month insurance policy effective April 1. 2008.
Maria Jasmine acquired P20.000 of the furniture and fixtures on January 1. 2007. Estimated useful life is five years. scrap value of P5,000. The balance was acquired on June 30, 2008 with an estimated life of 5 years, no scrap value.
The accountant maintains an allowance for doubtful accounts equal to five percent of the outstanding account balance.
The note issued to Philippine Bank was dated November 2. 2008 and is due January 31. 2009.
3% percentage tax on December gross receipts of P193,800 is due and payable.
Accrue employer's share on December payroll contributions for two employees whose monthly salary is P7,750 each.
Required:
Prepare a 10-column working papers.
Using the working paper as a basis, prepare the adjusting entries in good form.
Prepare properly classifies financial statements with supporting notes.
Prepare the closing entries and the post-closing trial balance.