The following is the post-closing trial balance of Abagon Shop dated February 1, 2006

Debit
Credit
Cash
120,000
Accounts Receivable
280,000
Allowance for doubtful accounts
2,800
Unused shop supplies
800
Shop equipment
240,000
Accumulated depreciation shop equipment
48,000
Accounts payable
88,800
Notes payable
100,000
Accrued interest payable
1,200
Abagon, Capital
400,000
For the month of February, the following are the transactions of Abagon Shop
1.
2.
3.
4.
5.
6.
7.
8.
9.

Abagon withdrew P 100,000 cash from the business for her personal use
Paid P 12,000 insurance premium
Paid P 24,000 rent
Total service rendered to various customers, P 140,000, 40% of total sales are on cash
basis and the balance on open account
Received promissory note from customer to replace P 40,000 accounts receivable
Collected in cash P 164,000 of accounts receivable
Paid the notes payable of P 100,000 plus the P 2,400 interest
Purchased P 2,400 shop supplies on cash basis
Paid salaries, P 24,000

At the end of the month, the following information are available to effect adjustments
1. The insurance in number 2 for P 12,000 is applicable for six months starting February
2. The rent of P 24,000 paid in number 3 is for 3 months, starting February
3. The note receivable in number 5 is earning 12% interest per year. The note is dated
February 1, and is due on April 30
4. Bad debts expense is estimated at 2% of accounts receivable balance
5. The annual depreciation is P 48,000
6. The unused supplies balance is P 1,000
REQUIRED:
1. Journalize the transactions for the month of February
2. Prepare a 10-column worksheet that includes:
a. Unadjusted Trial Balance as of February 28
b. Adjustments
c. Adjusted Trial Balance as of February 28
d. Income Statement
e. Balance Sheet