1. **Problem Statement:** Prepare ledger accounts, journalize and post adjusting entries, create an adjusted trial balance, and prepare financial statements for Moises Dondoyano Information Systems using given unadjusted trial balance and additional information as of Dec. 31, 2019. 2. **Step 1: Establish ledger accounts** List ledger accounts according to the unadjusted trial balance: Cash, Notes Receivable, Accounts Receivable, Office Supplies, Land, Building, Accumulated Depreciation-Building, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Unearned Consulting Revenues, Dondoyano Capital, Dondoyano Withdrawals, Consulting Revenues, Salaries Expense, Repairs Expense, Miscellaneous Expense. 3. **Step 2: Journalize & post adjusting entries** (a) Office supplies adjustment: Office Supplies Ending = 21,000 Office Supplies Used = 63,000 - 21,000 = 42,000 Journal Entry: Debit Supplies Expense 42,000; Credit Office Supplies 42,000. (b) Unearned revenue adjustment: One-third earned = (1/3) * 450,000 = 150,000 Journal Entry: Debit Unearned Consulting Revenues 150,000; Credit Consulting Revenues 150,000. (c) Depreciation: Building Depreciation = 38,000 Equipment Depreciation = 123,000 Journal Entry: Debit Depreciation Expense 161,000; Credit Accumulated Depreciation-Building 38,000; Credit Accumulated Depreciation-Equipment 123,000. (d) Accrued salaries: Journal Entry: Debit Salaries Expense 14,000; Credit Salaries Payable 14,000. (e) Interest on Notes Receivable: Interest Period = Sept 1, 2019 to Dec 31, 2019 (4 months) Interest = 360,000 * 20% * (4/12) = 24,000 Journal Entry: Debit Interest Receivable 24,000; Credit Interest Revenue 24,000. 4. **Step 3: Prepare adjusted trial balance** Update ledger balances after adjustments, including: - Office Supplies = 21,000 - Unearned Revenues = 450,000 - 150,000 = 300,000 - Accumulated Depreciation-Building = 254,000 + 38,000 = 292,000 - Accumulated Depreciation-Equipment = 612,000 + 123,000 = 735,000 - Salaries Expense = 875,000 + 14,000 = 889,000 - Interest Revenue = 24,000 - Interest Receivable = 24,000 5. **Step 4: Prepare financial statements** (a) Income Statement (Revenues - Expenses): Revenues: Consulting Revenues 2,108,000 + Interest Revenue 24,000 + 150,000 (earned portion) = 2,282,000 Expenses: Salaries Expense 889,000 + Repairs Expense 116,000 + Miscellaneous Expense 37,000 + Supplies Expense 42,000 + Depreciation Expense 161,000 = 1,245,000 Net Income = 2,282,000 - 1,245,000 = 1,037,000 (b) Statement of Changes in Equity: Beginning Capital 2,655,000 + Net Income 1,037,000 - Withdrawals 600,000 = Ending Capital 3,092,000 (c) Balance Sheet (Assets = Liabilities + Equity): Assets: Cash 45,000 + Notes Receivable 360,000 + Interest Receivable 24,000 + Accounts Receivable 156,000 + Office Supplies 21,000 + Land 300,000 + Building 1,590,000 - Accumulated Depreciation-Building 292,000 + Equipment 2,150,000 - Accumulated Depreciation-Equipment 735,000 = Total Assets 3,619,000 Liabilities: Accounts Payable 213,000 + Unearned Revenues 300,000 + Salaries Payable 14,000 = 527,000 Equity: Capital 3,092,000 Check: 3,619,000 = 527,000 + 3,092,000 Final Answer: Net Income = P1,037,000 Ending Capital = P3,092,000 Adjusted Trial Balance and Financial Statements prepared accordingly.