Steps in preparing FS

1. TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 80,000.00
Service Revenue 100,000.00
Drawings 5,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
TOTAL 288,150.00 288,150.00

2. Preparation of SCI

3. TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 80,000.00
Service Revenue 100,000.00
Drawings 5,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
TOTAL 288,150.00 288,150.00

4. TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 80,000.00
Service Revenue 100,000.00
Drawings 5,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
TOTAL 288,150.00 288,150.00
Service Revenue 100,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
NET INCOME/(LOSS) 56,850.00
NET INCOME TO BE USED IN
SoCE and SFP

5. Preparation of SoCE

6. TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 80,000.00
Service Revenue 100,000.00
Drawings 5,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
TOTAL 288,150.00 288,150.00
STATEMENT OF CHANGE IN EQUITY
The company started the
business with 30,000.00
capital and upon seeing that
the business is doing great the
owner invested additional
50,000.00 after 3 months
Beginning Capital 30,000.00
Add:
Additional Capital 50,000.00
Net Income 56,850.00 106,850.00
Less:
Drawings 5,000.00 5,000.00
Owners Equity 131,850.00
NET INCOME FROM SCI 56,850.00

7. Preparation of Post Closing
Trial Balance

8. TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 80,000.00
Service Revenue 100,000.00
Drawings 5,000.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhelath Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00
TOTAL 288,150.00 288,150.00

9. CLOSING THE EXPENSES
DR CR
Income Summary 43,150.00
Salaries and wages 15,000.00
Personnel Allowance 10,000.00
Pagibig Contribution Employer Share 2,000.00
Philhealth Contribution Employer Share 3,150.00
Electricity Expense 4,500.00
Water Expenses 500.00
Repairs and Maintenance 4,500.00
Other Misc. Expenses 3,500.00

10. CLOSING THE REVENUE
DR CR
Service Revenue 100,000.00
Income Summary 100,000.00

11. CLOSING THE INCOME SUMMARY BALANCE
INCOME SUMMARY GENERAL LEDGER
DR CR BALANCE
Closing All Expenses 43,150.00 43,150.00
Closing The Revenue 0 100,000.00 56,850.00
Credit Balance 56,850.00
JOURNAL ENTRY
DR CR
Income Summary 56,850.00
Equity 56,850.00

12. CLOSING THE INCOME SUMMARY BALANCE
JOURNAL ENTRY
DR CR
Income Summary 56,850.00
Equity 56,850.00
INCOME SUMMARY GENERAL LEDGER after CLOSING ENTRY
DR CR BALANCE
Closing All Expenses 43,150.00 43,150.00
Closing The Revenue 0 100,000.00 56,850.00
Closing Income Summary 56,850.00 0 0.00

13. CLOSING THE DDRAWINGS
Account DR CR
Equity 5,000.00
Drawings 5,000.00
GENERAL LEDGER EQUITY
DR CR BAL
BEG. 30,000.00 30,000.00
ADDITIONAL CAP 50,000.00 80,000.00
NET INCOME 56,850.00 136,8500.00
DRAWINGS 5,000.00 131,850.00
SAME IN YOUR SoCE

14. POS CLOSING TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 131,850.00
TOTAL 240,000.00 240,000.00
EQUITY of
131,850.00
from SOCE
ALL EXPENSES AND REVENUE ACCOUNTS WAS NOT
ANYMORE INCLUDED BECAUSE IT WAS CLOSED AT
THE END OF THE MONTH

15. PREPARATION OF SFP

16. POS CLOSING TRIAL BALANCE
DR CR
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment 5,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
Equity 131,850.00
TOTAL 240,000.00 240,000.00

17. STATEMENT OF FINANCIAL POSITION
Cash and Cash Equivalents 80,000.00
Accounts Receivables 45,000.00
Inventories 15,000.00
Property Plant and Equipment 100,000.00
Accu. Depreciation Equipment (5,000.00)
TOTAL ASSETS 235,000.00
Accounts Payables 45,000.00
Long Term Notes Payables 58,150.00
TOTAL LIABILITIES 103,150.00
TOTAL OWNERS EQUITY/NET WORTH 131,850.00
TOTAL LIABILITIES AND EQUITY 235,000.00