PROBLEM 8-4

CRISTOBAL STORE
Worksheet
As of December 31, 2013
ACCRUAL BASIS

Trial Balance Transactions Adjustments Current TOTAL Adjusted TB December Income Statement Balance Sheet December
December 31, 2012 Current Year Year 31, 2013 December 31, 2013 31, 2013
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 36,000 450,000 80,000
116,000 286,000
110,000
10,000
5,000
20,000
10,000
400
1,500 602,000 522,900 79,100 79,100
Accounts Receivable 20,000 120,000 117,000
1,000 140,000 118,000 22,000 22,000
Allow. For Doubtful Accounts 1,000 2,100 1,000 2,100 1,100 1,100
Accounts Receivable - other income 5,000 300 5,300 5,300 5,300
Merchandise inventory 70,000 70,000 70,000 70,000 80,000 80,000
Prepaid Operating expense 2,000 3,000 2,000 5,000 2,000 3,000 3,000
Equipment 80,000 10,000
10,000 100,000 100,000 100,000
Accum. Depreciation - Equip. 30,000 9,000 39,000 39,000 39,000
Investment in stock 20,000 20,000 20,000 20,000

Accounts payable 60,000 288,000 320,000

10,000 288,000 390,000 102,000 102,000
Loans payable 20,000 10,000 10,000 20,000 10,000 10,000
Accrued interest expense 300 300 100 300 400 100 100
Accrued operating expense 4,000 4,000 6,000 4,000 10,000 6,000 6,000

Bart Cristobal, capital 93,700 93,700 93,700 93,700

Sales 450,000
120,000 570,000 570,000 570,000
Sales discount 1,000 1,000 1,000 1,000
Sales returns 1,500 1,500 1,500 1,500
Other income 300 300 300 300

Purchases 80,000
320,000 400,000 400,000 400,000
Purchase discount 2,000 2,000 2,000 2,000
Operating expense 110,000 6,000 3,000
2,000 4,000 118,000 7,000 111,000 111,000
Interest expense 400 100 300 500 300 200 200
Depreciation expense 9,000 9,000 9,000 9,000
Doubtful accounts expense 2,100 2,100 2,100 2,100

208,000 208,000 1,542,900 1,542,900 26,800 26,800 1,777,700 1,777,700 824,200 824,200 594,800 652,300 309,400 251,900
NET INCOME 57,500 57,500
TOTALS 652,300 652,300 309,400 309,400
TRANSACTIONS DEBIT CREDIT

Cash 450000
Sales 450000

Accounts Receivable 120000

Sales 120000

Cash 116000
Sales Discounts 1000
Accounts Receivable 117000

Purchases 80000
Cash 80000

Purchases 320000
Accounts Payable 320000

Accounts payable 288000

Cash 286000
Purchase Discount 2000

Operating expenses 110000

Cash 110000

Equipment 10000
Cash 10000

Equipment 10000
Accounts payable 10000

Allowance for Doubtful Accounts 1000

Accounts Receivable 1000

Accounts receivable - other income 5000

Cash 5000

Investment in stocks 20000

Cash 20000

Loans payable 10000

Cash 10000

Interest expense 400

 Cash 400

Sales return and allowances 1500

Cash 1500
ADJUSTING ENTRIES

Doubtful accounts expense 2100

Allowance for Doubtful accounts 2100

Depreciation expense 9000

Accumulated depreciation - Equipment 90000

Merchandise Inventory 80000

Income Summary 80000

Operating expense 6000

Accrued operating expenses 6000

Interest expense 100

Accrued interest expense 100

Prepaid operating expenses 3000

Operating expenses 3000

Accounts Receivable - other income 300

Other income 300

REVERSING ENTRIES DEBIT CREDIT

Accrued interest expense 300

Interest expense 300

Accrued operating expense 4000

Operating expense 4000

Operating expense 2000

Prepaid operating expense 2000
PROBLEM 8-4
CRISTOBAL STORE
Worksheet
As of December 31, 2013
ACCRUAL BASIS

Trial Balance Transactions Trial Balance Income Statement Balance Sheet December
December 31, 2012 Current Year December 31, 2013 December 31, 2013 31, 2013
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 36,000 450,000 80,000
116,000 286,000
110,000
10,000
5,000
20,000
10,000
400
1,500 602,000 522,900 79,100
Investment in stock 20,000 20,000 20,000

Loans payable 10,000 10,000 10,000

Bart Cristobal, capital 116,000 116,000 116,000

Sales 450,000
117,000 567,000 567,000
Sales discount 1,000 1,000 1,000
Sales returns 1,500 1,500 1,500
Other income 5,000 5,000 5,000

Purchases 80,000 80,000 80,000

288,000 288,000 288,000
Purchase discount 2,000 2,000 2,000
Operating expense 110,000 110,000 110,000
Interest expense 400 400 400
Equipment expense 80,000 10,000 90,000 90,000

116,000 116,000 1,091,900 1,091,900 1,207,900 1,207,900 575,900 569,000 109,100 116,000
NET INCOME - 6,900 - 6,900
TOTALS 569,000 569,000 109,100 109,100
TRANSACTIONS DEBIT CREDIT

Cash 450000
Sales 450000

Cash 116000
Sales Discounts 1000
Sales 117000

Purchases 80000
Cash 80000

Purchases 288000
Cash 286000
Purchase Discount 2000

Operating expenses 110000

Cash 110000

Equipment expense 10000

Cash 10000

Other income 5000

Cash 5000

Investment in stocks 20000

Cash 20000

Loans payable 10000

Cash 10000

Interest expense 400

 Cash 400

Sales return and allowances 1500

Cash 1500

1091900 1091900