... following
transactions occurred during December:
December 1 Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of common stocks.
December 1 Purchased PHP 12,000.00 of computer equipment paid thru cash.
December 1 Paid a 3 months’ insurance policy starting December 1,2020, PHP 9,000.00
December 5 Purchased Office Supplies on account, PHP 5,800.00
December 8 Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and signed promissory
notes payable to bank under the name of his business.
December 9 Paid advertising expenses for only PHP 1,580.00
December 10 Paid half of the supplies on account
December 13 Rivera’s Quality Automotive paid registration and licensing fees for the business, PHP 10,800.00
December 16 The company acquired tables, chairs, shelves, and other fixtures for a total of PHP 30,000.00 The
entire amount was paid in cash.
December 17 The company acquired service equipment for PHP 16,000.00 The company paid a 50% down
payment and the balance will be paid after 60 days.
December 17 The company received PHP 10,900.00 for services rendered.
December 17 Rendered services on account, PHP 78,000.00. As per agreement with the Rapid Automotive, the
amount is to be collected after 10 days
December 19 Mr. Rivera invested an additional PHP 53,200.00 into the business
December 20 Rendered services to a big corporation on December 20. As per agreement, the PHP 33,400.00
amount due will be collected after 30 days
December 21 Paid in full the supplies on account
December 21 The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP 60,000.00 from the
company.
December 22 Paid rent for December, PHP 1,500.00
December 23 Paid salaries to its employees, PHP 3,500.00
December 27 Collected from the Rapid Automotive full amount. December 28 Paid the bank 30% of loan
payable
ADJUSTMENT DATA:

A. Office Supplies used during the month, PHP 3,800.00
B. Depreciation of the computer for the month, PHP 2,400.00
C. Depreciation of the service equipment for the month, PHP 3,200.00
D. One-month insurance was expired

Requirement:
1. Journalize the following transactions.
2. Prepare the T-Accounts
3. Prepare the Adjusting Entries.
4. Prepare the Trial Balance
5. Prepare the Income Statement
6. Prepare the Statement of Financial Position