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credo auto dsupply

pp 307-308
mrdse invty beg 165300
add purchases 310000
purchase disc -880 309120
tgas 474420
mdse invty end(40% oof TGAS) -189768
COST OF SALES 284652

mdse invty end 189768


income & exp Summary 189768

2)Supplies Used 1400


Supplies invty 1400

3) cost of asset -salvage value/useful life

115000
-50000 50000/10 5000
65000/10 x 6/12 3250
Total Depreciation 8250

Depreciation exp-SE 8250


AD - SE 8250

4) computation of office F/F


59000 x 20%= 11800

Depreciation Exp OF/F 11800


AD- OF/F 11800
5) Computation of Interest on Loans
100000 x 18% x 20/360 1000
interest exp 1000
Prepaid interest 1000

6)COMPUTATION OF RENT EXP For the year

(108000 / 18) x12= 72000


Prepaid Rent 36000
Rent Exp 36000

7) Salaries Exp 450


salaries payable 450

8) Utilities Expense 3500


Utilities Payable 3500
Credo Auto Supply
Worksheet
31-Dec-06
PARTICULARS Unadjusted Trial Bal ADJUSTMENTS Adjusted Trial Balance Income Statement
DR CR DR CR DR CR DR CR
cash 390025 390025
Accounts Rec. 64000 64000
Supplies Invty. 1900 1400 500
Mdse invty Beg 165300 165300 165300
Prepaid interst 6000 1000 5000
Store Equipment 115000 115000
Office F/F 59000 59000
Accounts Payable 7500 7500
Loans Payable 100000 100000
Credo Cap 444725 444725
Credo, Personal 32500 32500
Sales 897000 897000 897000
Sales Discount 16800 16800 16800
Purchases 310000 310000 310000
Purchase disc. 880 880 880
Sales Salaries Exp 91600 450 92050 92050
Utilities Exp 89980 3500 93480 93480
Rent Exp 108000 36000 72000 72000
total 1450105 1450105

Mdse invty End 189768 189768


Income & Exp Sum. 189768 189768 189768
Supplies Used 1400 1400 1400
Dep Exp SE 8250 8250 8250
Accm Dep SE 8250 8250
Depex O F/F 11800 11800 11800
Accm Dep- O F/F 11800 11800
Interest Exp 1000 1000 1000
Prepaid Rent 36000 36000
Salaries Payable 450 450
Utilities Payable 3500 3500
252168 252168 1663873 1663873 772080 1087648
NET INCOME 315568
1087648 1087648
BALANCE SHEET
DR CR
390025
64000
500

5000
115000
59000
7500
100000
444725
32500

189768

8250

11800

36000
450
3500
891793 576225
315568
891793 891793

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