NICANOR Trading

Worksheet
December 31,2019

Unadjusted Trial Balance Adjustments

Debit Credit Debit
Cash in bank 200,000
Cash on hand 90,000
Accounts receivable 334,000
Allowance for doubtful accounts 12,000
Notes receivable 110,000
Merchandise inventory 280,000
Supplies inventory 34,000
Prepaid advertising 30,000
Store furniture and fixtures 220,000
Accumulated depreciation-store furniture 20,000
Office equipment 190,000
Accumulated depreciation- Office equipment 20,000
Accounts payable 189,000
Notes payable 140,000
Interest payable 26,000
Bank loan payable 350,000
Nicanor, capital 700,000
Nicanor, Drawing 50,000
Sales 1,200,000
Sales discounts 14,000
Sales returns 18,000
Purchases 920,000
Freight in 17,000
Purchase discounts 18,000
Purchase returns 15,000
Salaries and wages 70,000 10,000
Freight out 5,000
Rent expense 45,000
Insurance expense 20,000
Light and water expense 8,000
Taxes and licenses 6,000
Travelling expense 14,000
Interest expense 15,000
Totals 2,690,000 2,690,000
ADJUSTMENTS:
Merchandise inventory end
Doubtful Accounts 6,000
Advertising expense 18,000
Depreciation Expense 40,000
Prepaid rent 9,000
Prepaid insurance 6,200
Salaries payable
Prepaid interest 5,800
Supplies expense 14,000
Totals 109,000
Net Profit
Totals

Adjusting Entries: e. Prepaid rent

a. Merchandise inventory on December 31,2015 , 580,000 Rent expense
b. Doubtful accounts 6,000
Allowance for doubtful accounts 6000 f. Prepaid insurance
Insurance expense
c. Advertising expense 18,000 g. Salaries and wages
Prepaid advertising 18000 Salaries and wages payable
h. Prepaid interest 4,
d. Depreciation Expense 40,000 Interest expense 3,00
Accumulated depreciaiton- Store furniture & Fixtures 15,000
Accumulated depreciation - Office equipment 25,000
ng

019

Adjustments INCOME STATEMENT BALANCE SHEET

Credit Debit Credit Debit Credit
200,000
90,000
334,000
6,000 18,000
110,000
280,000
14,000 20,000
18,000 12,000
220,000
15,000 35,000
190,000
25,000 45,000
189,000
140,000
26,000
350,000
700,000
50,000
1,200,000
14,000
18,000
920,000
17,000
18,000
15,000
80,000
5,000
9,000 36,000
6,200 13,800
8,000
6,000
14,000
5,800 9,200

580,000 580,000
6,000
18,000
40,000
9,000
6,200
 10,000 10,000
5,800
14,000
109,000 1,499,000 1,813,000 1,827,000 1,513,000
314,000 314,000
1,813,000 1,813,000 1,827,000 1,827,000

e. Prepaid rent 9,000

Rent expense 9,000 i. Supplies expense 14,000
supplies inventory 14,000
f. Prepaid insurance 6,200
Insurance expense 6200
g. Salaries and wages 10,000
Salaries and wages payable 10,000
h. Prepaid interest 4, 5,800
Interest expense 3,000 5,800
 NICANOR TRADING
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2019

REVENUES:
SALES
LESS: SALES RETURNS 18,000
SALES DISCOUNTS 14,000
NET SALES
LESS: COST OF GOODS SOLD
MERCHANDISE INVENTORY BEGINNING 280,000
ADD: NET PURCHASES
PURCHASES ###
PURCHASE RETURNS (15,000)
PURCHASE DISCOUNTS (18,000) 887,000
FREIGHT IN 17,000
NET PURCHASES 904,000
GOODS AVAILABLE FOR SALE 1,184,000
LESS: MERCHANDISE INVENTORY END - 580,000
COST OF GOODS SOLD
GROSS PROFIT
LESS: OPERATING EXPENSES
SALARIES AND WAGES 80,000
FREIGHT OUT 5,000
RENT EXPENSE 36,000
Insurance expense 13,800
Light and water expense 8,000
Taxes and licenses 6,000
Travelling expense 14,000
Interest expense 9,200
Doubtful Accounts 6,000
Advertising Expense 18,000
Supplies Expense 14,000
Depreciation Expense 40,000
NET PROFIT
 1,200,000

32,000
1,168,000

604,000
564,000

250,000
314,000
 NICANOR TRADING
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2019

NICANOR, CAPITAL BEGINNING 700,000

ADD: PROFIT 314,000
TOTAL 1,014,000
LESS: WITHDRAWAL 50,000
NICANOR, CAPITAL END 964,000
 NICANOR TRADING
BALANCE SHEET
AS OF THE YEAR ENDED DECEMBER 3

CURRENT ASSETS:
CASH AND CASH EQUIVALENTS ( NOTE 1)
TRADE AND OTHER RECEIVABLES ( NOTE 2)
INVENTORIES (NOTE 6)
PREPAID EXPENSES ( NOTE 3)
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
PROPERTY PLANT AND EQUIPMENT(NOTE 4)
TOTAL NON-CURRENT ASSETS
TOTA ASSETS

LIABILITIES AND OWNER'S EQUITY

LIABILITES
CURRENT LIABILITIES
TRADE AND OTHER PAYABLES ( NOTE 5)
TOTAL CURRENT LIABILITES
NON-CURRENT LIABILITIES
BANK LOAN PAYABLE
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
OWNER'S EQUITY
NICANOR, CAPITAL END
TOTAL OWNER'S EQUITY
TOTAL LIABILITIES AND OWNER'S EQUITY
 NICANOR TRADING
BALANCE SHEET
E YEAR ENDED DECEMBER 31, 2019

ASSETS:
NOTE 1:
290,000 CASH AND CASH EQUIVALENTS
426,000 Cash in bank ###
600,000 Cash on hand 90,000
33,000 TOTAL 290,000
1,349,000
NOTE 2:
330,000 TRADE AND OTHER RECEIVABLES
330,000 Accounts receivable ###
1,679,000 Allowance for doubtful accounts - 18,000
Notes receivable ###
S AND OWNER'S EQUITY TOTAL 426,000

NOTE 3:
365,000 PREPAID EXPENSES
365,000 Prepaid advertising 12,000
Prepaid rent 9,000
350,000 Prepaid insurance 6,200
350,000 Prepaid interest 5,800
715,000 TOTAL 33,000

964,000 NOTE 4:
964,000 PROPERTY, PLANT AND EQUIPMENT
1,679,000 Store furniture and fixtures ###
Accumulated depreciation-store furniture - 35,000
Office equipment ###
Accumulated depreciation- Office equipment - 45,000
TOTAL 330,000

NOTE: 5
TRADE AND OTHER PAYABLES
Accounts payable 189,000
Notes payable 140,000
salaries payable 10,000
Interest Payable 26,000
TOTAL 365,000

NOTE: 6
INVENTORIES
Merchandise inventory 580,000
Supplies inventory 20,000
TOTAL 600,000