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The images you provided contain an unadjusted trial balance for a laundry shop as of December 31, 2023, and additional data for adjustments that need to be made.

### First Image: Unadjusted Trial Balance (Summer Laundry Shop)
- **Debit (₱)**:
  - **Cash**: 892,500
  - **Accounts Receivable**: 210,000
  - **Allowance for Doubtful Accounts**: 7,000 (will be adjusted later)
  - **Prepaid Insurance**: 63,000
  - **Laundry Supplies**: 84,000
  - **Laundry Equipment**: 735,000
  - **Delivery Truck**: 595,000
  - **Furniture**: 105,000
  - **Accumulated Depreciation (various assets)**: totals to 192,500
  - **Notes Payable (Bank)**: 373,800
  - **Various expenses and salaries** (Gas, Oil, Salaries, Utilities, Misc. expenses): Total of **₱3,826,900**

- **Credit (₱)**:
  - **Vallejos Capital**: 1,627,500
  - **Vallejos Withdrawals**: 112,000
  - **Unearned Laundry Income**: 42,000
  - **Total Credits**: **₱3,826,900**

### Second Image: Data for Adjustments
The adjustments required are as follows:
1. **Doubtful accounts**: Additional ₱7,000 is considered doubtful.
2. **Prepaid Rent**: ₱42,000.
3. **Prepaid Insurance**: ₱21,000.
4. **Laundry Supplies on hand**: ₱28,000.
5. **Accrued Interest on Notes Payable**: ₱31,500.
6. **Depreciation on fixed assets**: 
   - Delivery Truck: 20 years, scrap value ₱35,000.
   - Laundry Equipment: 10 years, scrap value ₱70,000.
   - Furniture: 10 years, scrap value ₱17,500.
7. **Unearned Laundry Income**: ₱42,000.
8. **Accrued Salaries**: ₱56,000.
9. **Prepaid Advertising**: ₱10,500.
10. **Unpaid Telephone Bills**: ₱3,675.

### Steps to Complete:
- **Adjusting Entries**: Based on the provided information, adjustments should be made to various accounts for items like prepaid expenses, depreciation, accruals, etc.
- **Ten-Column Worksheet**: After adjustments, you’ll need to prepare a worksheet reflecting these.
- **Financial Statements**:
  - **Income Statement**: To show revenues and expenses.
  - **Statement of Changes in Equity**: Show changes in capital.
  - **Balance Sheet**: Shows assets, liabilities, and equity after adjustments.

Would you like help with the specific adjusting entries, or with preparing any of these financial statements?

### 5 Questions:
1. How is the allowance for doubtful accounts adjusted in this scenario?
2. What depreciation method is being applied for the fixed assets (e.g., straight-line)?
3. How will the unearned income adjustment affect both the balance sheet and income statement?
4. What impact do accrued salaries and unpaid telephone bills have on the liabilities?
5. How should prepaid rent and prepaid insurance be handled in adjusting entries?

### Tip:
When calculating depreciation, ensure you subtract the scrap value from the asset cost before dividing by the useful life to get the correct annual depreciation.

The unadjusted trial balance of Summer Laundry Shop as of December 31, 2023, along with the adjustments for prepaid rent, prepaid insurance, laundry supplies on hand, accrued interest, depreciation on fixed assets, and other expenses.

Review the accounting adjustments required for Summer Laundry Shop's trial balance as of December 31, 2023, covering prepaid rent, prepaid insurance, accrued salaries, depreciation of fixed assets, and more. Learn how to prepare adjusting entries and financial statements.

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