Jordan Hardware & Construction Supply

Adjusted - Trial Balance

31-Dec-19

Cash in Bank 2,050,000

Accounts Receivable 185,000
Estimated Uncollectible Accounts
Merchandise Inventory, Jan. 1, 2019 2,980,000
Unused Supplies 54,000
Furniture & Fixtures 1,300,000
Accumulated Depreciation – Furniture & Fi
Accounts Payable
N. Alegre, Capital
N. Alegre, Drawing 60,000
Sales
Sales Discounts 12,500
Sales Returns & Allowances 14,600
Purchases 1,880,000
Purchase Discounts
Purchase Returns and Allowances
Freight-In 9,810
Sales Salaries – Selling 188,000
Office Salaries – General 160,000
Taxes and Licences – General 64,300
Rent Expense – General 176,000
Utilities Expense – General 140,000
Sales Commission – Selling 80,000
Total 9,354,210

Additional Data: Merchandise Inventory – December 31, 2019 – P 1,010,000

Jordan Hardware & Construction Supply is a client of Ma. Cecilia Lafaras, CPA. Nathalyn S. Alegre
a.       Schedule of Cost of Sales
b.      Statement of Financial Performance
c.       Statement of Owner’s Equity
d.      Statement of Financial Position
Supply

4,000

520,000
980,000
2,382,010

5,452,000

5,900
10,300

9,354,210

P 1,010,000

Cecilia Lafaras, CPA. Nathalyn S. Alegre, the owner-manager sought your assistance to prepare for her the following:
 Jordan Hardware & Construction Supply
Schedule of Cost of Sales
For the year ended December 31, 2019

Merchandise Inventory, Beginning

Net Cost of Purchases
Purchases 1,880,000
Add: Freight-In 9,810
Less: Purchase Discounts 5,900
Purchase Returns and Allowances 10,300 16,200
Available for Sale
Merchandise Inventory, End
Cost of Sales
2,980,000

1,873,610
4,853,610
1,010,000
3,843,610
 Jordan Hardware & Construction Supply
Statement of Financial Performance
For the year ended December 31, 2019

Note
Net Sales 1
Cost of Sales (refer to the schedule)
Gross Income

Expenses:
Selling Expenses 2 268,000
General & Administrative Expe 3 540,300

Net Income

Note 1

Sales 5,452,000
Sales Discounts 12,500
Sales Returns & Allo 14,600 27,100

Net Sales 5,424,900

Note 2
Selling Expenses
Sales Salaries – Selling 188,000
Sales Commission – Selling 80,000

Total Selling Expenses 268,000

Note 3
General & Administrative Expenses
Office Salaries – General 160,000
Taxes and Licences – General 64,300
Rent Expense – General 176,000
Utilities Expense – General 140,000

Total General & Administrative Expenses 540,300

5,424,900
3,843,610
1,581,290

808,300

772,990
 Jordan Hardware & Construction Supply
Statement of Changes in Owner's Equity
For the year ended December 31, 2019

Opening Balance
N. Alegre, Capital 2,382,010
Add:
Net Income for the period 772,990
Less:
Withdrawal of Capital 60,000
Closing Balance
N. Alegre, Capital, end 3,095,000
 Jordan Hardware & Construction Supply
Statement of Financial Position
31-Dec-19

Assets Note Liabilities and Owner's

Current Assets Current Liabilities
Cash in Bank 2,050,000
Accounts Receivable 1 181,000
Merchandise Inventory 1,010,000
Unused Supplies 54,000
Owner's Equity
Total Current Assets 3,295,000

Non- Current Assets

Furniture & Fixtures 2 780,000

Total Non-Current Assets 780,000

Total Assets 4,075,000 Total Liabilities and Equity

Note 1- Trade Receivables

Accounts Receivable 185,000

Less: Estimated Uncol 4,000
Net realizable value 181,000

Note 2- Furniture and Fixtures

Furniture & Fixtures 1,300,000

Less: Accumulated Depreciation 520,000
Carrying Amount 780,000
 Liabilities and Owner's Equity
Current Liabilities
Accounts Payable 980,000

Total Current Liabilities 980,000

Owner's Equity
N. Alegre, Capital, end 3,095,000

Total Liabilities and Equity 4,075,000