CLARITY COMPANY

WORKING TRIAL BALANCE

DECEMBER 31, 2018

Trial Balance Adjustments Profit or Loss Financial Position

Debit Credit Debit Credit Debit Credit Debit Credit
Account Titles
Cash 191,000.00 60,000.00 131,000.00

Accounts receivable 615,000.00 615,000.00

Allowance for doubtful accounts 21,000.00 9,750.00 30,750.00

Inventory, December 31, 2017 584,000.00 584,000.00

Prepaid Expenses 8,000.00 1,200.00 6,800.00

Investments 110,000.00 30,000.00 80,000.00

Furniture and Equipment 312,000.00 312,000.00

Miscellaneous Equipment 90,000.00 90,000.00

Accumulated Depreciation 76,400.00 39,200.00 115,600.00

Accounts Payable 543,000.00 50,000.00 593,000.00

Accrued Expenses 51,000.00 3,000.00 54,000.00

Unearned Rent Income 12,800.00 2,800.00 10,000.00

Ordinary Share Capital 600,000.00 600,000.00

Retained Earnings 182,800.00 182,800.00

Sales 3,500,000.00 3,500,000.00

Rent Income 48,000.00 2,800.00 50,800.00

Purchases 2,424,000.00 50,000.00 2,474,000.00

Salaries Expenses 400,000.00 400,000.00

Advertising Expense 124,000.00 124,000.00

Commission Expense 80,000.00 80,000.00

Utilities Expense 32,000.00 32,000.00

Supplies 12,000.00 12,000.00

Transportation Expense 14,000.00 14,000.00

Repairs and Maintenance 16,000.00 16,000.00

Miscellaneous Expenses 23,000.00 3,000.00 26,000.00

TOTAL 5,035,000.00 5,035,000.00

 
ADJUSTMENTS:
60,000.00 60,000.00
Equipment Acquisition Fund
9,750.00 9,750.00
Doubtful Accounts Expense
650,000.00 650,000.00
Inventory, December 31, 2018
2,408,000.00 2,408,000.00
Cost of Goods Sold
30,000.00 30,000.00
Treasury Shares
Depreciation Expense 39,200.00 39,200.00

Insurance Expense 1,200.00 1,200.00

3,253,950.00 3,162,150.00 3,550,800.00
TOTAL 3,253,950.00
388,650.00
Profit before Income Tax
3,550,800.00 3,550,800.00
 
 388,650.00
Profit before Income Tax
116,595.00
Income Tax Expense (30%)
116,595.00
Income Tax Payable
272,055.00 272,055.00
Profit after Income Tax
388,650.00 388,650.00 1,974,800.00 1,974,800.00