RR TRADING CORPORATION

JOURNAL ENTRIES
DEBIT
1 Cash 200,000.00
Share Capital
Taxes and Licenses Expense 1,408.00
Cash
2 Taxes and Licenses Expense 6,000.00
Cash
Rent Expense 10,000.00
Rental Deposit 20,000.00
Cash
Pantry supplies 5,000.00
Furnitures and Fixtures 15,000.00
Creditable Input Vat 2,400.00
Cash
3 Furnitures and Fixtures 25,000.00
Creditable Input Vat 3,000.00
Cash
Cost of Sales 110,000.00
Cash
4 Accounts Receivable 22,400.00
Sales Revenue
OUTPUT VAT
Office Suplies 5,000.00
Creditable Input Vat 600.00
Cash
5 Cash 168,000.00
Sales Revenue
OUTPUT VAT
6 Advertising Expense 6,000.00
Creditable Input Vat 720.00
Cash
7 Office Equipment 50,000.00
Creditable Input Vat 6,000.00
Accounts Payable
8 Cash 5,000.00
Accounts Receivable 6,200.00
Sales Revenue
OUTPUT VAT
9 Office Equipment 12,000.00
Creditable Input Vat 1,440.00
Cash
10 Gasoline Expense 2,000.00
Cash
11 Notes Receivable 11,200.00
 Sales Revenue
OUTPUT VAT
13 Cash 22,400.00
Accounts Receivable
14 Representation Expense 2,232.14
Creditable Input Vat 267.86
Cash
15 Cash 6,200.00
Accounts Receivable
Salaries and Other benefits 30,000.00
Cash
18 Adavances to employees 5,000.00
Cash
20 Accounts Receivable 16,800.00
Sales Revenue
OUTPUT VAT
21 Salaries and Other benefits 6,000.00
Cash
22 Gasoline Expense 2,000.00
Cash
Cash 33,600.00
Sales Revenue
OUTPUT VAT
28 Office Supplies Expense 1,200.00
Pantry Supplies Expense 2,500.00
Office Supplies
Pantry Supplies
Light and Water Expense 4,592.86
Creditable Input Vat 407.14
Utilities Payable
29 Salaries and Other benefits 30,000.00
SSS, Pag-ibig, and Philhealth Contribution 850.00
WHT Payable
SSS Premium Payable
Philhealth Payable
Pag-ibig Payable
Cash
 RR TRADING CORPORATION
ADJUSTING ENTRIES
CREDIT
31 Merchandise Inventory
200,000.00 Cost of Sales

1,408.00 31 Depreciation Expense

Accumulated Depreciation - Office Equipment
6,000.00 Accumulated Depreciation - Furnitures & Fixtures

31 OUTPUT VAT
30,000.00 Creditable Input VAT
VAT Payable

22,400.00

28,000.00

110,000.00

20,000.00
2,400.00

5,600.00

150,000.00
18,000.00

6,720.00

56,000.00

10,000.00
1,200.00

13,440.00

2,000.00
10,000.00
1,200.00

22,400.00

2,500.00

6,200.00

30,000.00

5,000.00

15,000.00
1,800.00

6,000.00

2,000.00

30,000.00
3,600.00

1,200.00
2,500.00

5,000.00

6,000.00
1,300.00
500.00
600.00
22,450.00
DEBIT CREDIT
28,200.00
28,200.00

2,833.33
1722.22
1111.11

28200.00
14835.00
13365.00
 RR TRADING CO
GENERAL JO
ASSETS

CURRENT ASSETS
A/R
1-101 CASH 1-102
DEBIT CREDIT DEBIT
1 200,000.00 1 1,408.00 4 22,400.00 13
5 168,000.00 2 6,000.00 8 6,200.00 15
8 5,000.00 2 30,000.00 20 16,800.00
13 22,400.00 2 22,400.00 45,400.00
15 6,200.00 3 28,000.00 16,800.00
22 33,600.00 3 110,000.00
4 5,600.00
6 6,720.00
9 13,440.00
10 2,000.00
14 2,500.00
15 30,000.00
18 5,000.00
21 6,000.00
22 2,000.00
29 22,450.00
435,200.00 293,518.00
141,682.00

1-105 OFFICE SUPPLIES 1-106 PANTRY SUPPLIES

DEBIT CREDIT DEBIT
4 5,000.00 28 1,200.00 2 5,000.00 28
3,800.00 5,000.00
2,500.00

1-109 MERCHANDISE INVENTORY

DEBIT CREDIT
31 28,200.00
28,200.00
28,200.00
NON-CURRENT ASSETS

2-101 RENTAL DEPOSIT 2-102 OFFICE EQUIPMENT

DEBIT CREDIT DEBIT
2 20,000.00 7 50,000.00
20,000.00 9 12,000.00
20,000.00 62,000.00
62,000.00

2-105ACCUMULATED DEPRECIATION-F&F
DEBIT CREDIT
31 1,111.11
1,111.11
1,111.11

LIABILITIES

3-101 ACCOUNTS PAYABLE 3-102 UTILITIES PAYABLE

DEBIT CREDIT DEBIT
7 56,000.00 28
56,000.00
56,000.00

3-105 SSS PREMIUM PAYABLE PHILHEALTH PAYABLE

DEBIT CREDIT DEBIT
29 1,300.00 29
1,300.00
1,300.00

STOCKHOLDERS EQUITY

4-101 SHARE CAPITAL

 DEBIT CREDIT
1 200,000.00
200,000.00
200,000.00

REVENUE

5-101 SALES REVENUE

DEBIT CREDIT
4 20,000.00
5 150,000.00
8 10,000.00
11 10,000.00
20 15,000.00
22 30,000.00
235,000.00
235,000.00

EXPENSE

6-101 ADVERTISING EXPENSE 6-102 PANTRY SUPPLIES EXPENSE

DEBIT CREDIIT DEBIT
6 6,000.00 28 2,500.00
6,000.00 2,500.00
6,000.00 2,500.00

6-105 OFFICE SUPPLIES EXPENSE 6-106 RENT EXPENSE

DEBIT CREDIT DEBIT
28 1,200.00 2 10,000.00
1,200.00 10,000.00
1,200.00 10,000.00

6-109 TAXES AND LICENSES EXPENSE SSS,

6-110
PAGIBIG, AND PHILHEALTH CONTR
DEBIT CREDIT DEBIT
1 1,408.00 29 850.00
2 6,000.00 850.00
7,408.00 850.00
7,408.00
 RR TRADING CORPORATION
GENERAL JOURNAL

A/R NOTES RECEIVABLE ADVANCES TO EMPL

1-103 1-104
CREDIT DEBIT CREDIT DEBIT
22,400.00 11 11,200.00 18 5,000.00
6,200.00 11,200.00 5,000.00

28,600.00

PANTRY SUPPLIES 1-107 CREDITABLE INPUT VAT 1-108 DEFFERED INPUT

CREDIT DEBIT CREDIT DEBIT
2,500.00 2 2,400.00 31 14,835.00
2,500.00 3 3,000.00
4 600.00
6 720.00
7 6,000.00
9 1,440.00
14 267.86
28 407.14
14,835.00 14,835.00
0.00
FFICE EQUIPMENT 2-103
ACCUMULATED DEPRECIATION-OE 2-104 FURNITURES AND FIX
CREDIT DEBIT CREDIT DEBIT
31 1,722.22 2 15,000.00
1,722.22 3 25,000.00
1,722.22 40,000.00
40,000.00

TILITIES PAYABLE 3-103 VAT PAYABLE 3-104 WHT PAYABLE

CREDIT DEBIT CREDIT DEBIT
5,000.00 31 13,365.00
5,000.00 13,365.00
5,000.00 13,365.00

LHEALTH PAYABLE PAGIBIG PAYABLE OUTPUT VAT

CREDIT DEBIT CREDIT DEBIT
500.00 29 600.00 31 28,200.00
500.00 600.00
500.00 600.00

28,200.00
RY SUPPLIES EXPENSE 6-103 GASOLINE EXPENSE 6-104 LIGHT AND WATER E
CREDIT DEBIT CREDIT DEBIT
10 2,000.00 28 4,592.86
22 2,000.00 4,592.86
4,000.00 4,592.86
4,000.00

RENT EXPENSE 6-107 REPRESENTATION EXPENSE 6-108 SALARIES AND OTHER

CREDIT DEBIT CREDIT DEBIT
14 2,232.14 15 30,000.00
2,232.14 21 6,000.00
2,232.14 29 30,000.00
66,000.00
66,000.00

ND PHILHEALTH CONTRIBUTION 6-111 DEPRECIATION EXPENSE 6-112 COST OF SALE

CREDIT DEBIT CREDIT DEBIT
31 2,833.33 3 110,000.00
2,833.33 110,000.00
2,833.33 81,800.00
ADVANCES TO EMPLOYEES

CREDIT

DEFFERED INPUT VAT

CREDIT
FURNITURES AND FIXTURES
CREDIT

WHT PAYABLE
CREDIT
29 6,000.00
6,000.00
6,000.00

OUTPUT VAT
CREDIT
4 2,400.00
5 18,000.00
8 1,200.00
11 1,200.00
20 1,800.00
22 3,600.00
28,200.00
0.00
LIGHT AND WATER EXPENSE
CREDIT

ALARIES AND OTHER BENEFITS

CREDIT

COST OF SALES
CREDIT
31 28,200.00
28,200.00
 RR TRADING CORPORATION
ADJUSTING ENTRIES

Date Accounts Post Ref. DEBIT

Dec. 31 Merchandise Inventory 1-109 28,200.00
Cost of Sales 6-112

31 Depreciation Expense 6-111 2,833.33

Accumulated Depreciation - Office Equipment 2-103
Accumulated Depreciation - Furnitures & Fixtures 6-105

31 OUTPUT VAT 3-108 28,200.00

Creditable Input VAT 1-107
VAT Payable 3-103
CREDIT

28,200.00

1,722.22
1,111.11

14,835.00
13,365.00
 RR TRADING CORPORATION
ADJUSTED TRIAL BALANCE

ACCOUNT NAME DEBIT

Cash 141,682.00
A/R 16,800.00
Notes Receivable 11,200.00
Advances to employees 5,000.00
Office Supplies 3,800.00
Pantry supplies 2,500.00
Merchandise Inventory 28,200.00

Rental Deposit 20,000.00

Office Equipment 62,000.00
Accumulated depreciation - OE
Furnitures and fixtures 40,000.00
Accumulated depreciation - f&f

Accounts payable
Utilities payable
VaT payable
WHT payable
SSS Premium payable
PHILHEALTH Payable
Pagibig payable

Share capital
Sales revenue

Advertising expense 6,000.00

Pantry supplies expense 2,500.00
Gasoline expense 4,000.00
Light and Water expense 4,592.86
Office supplies expense 1,200.00
Rent expense 10,000.00
Representation expense 2,232.14
Salaries and other benefits 66,000.00
Taxes and license expense 7,408.00
SSS, PAGIBIG, and PHILHEALTH Contribution 850.00
Depreciation expense 2,833.33
Cost of sales 81,800.00
TOTAL 520,598.33
CREDIT

1,722.22

1,111.11

56,000.00
5,000.00
13,365.00
6,000.00
1,300.00
500.00
600.00

200,000.00
235,000.00

520,598.33
Date Particulars F
Dec-31 Closing Entries
1) Sales Revenue
Income Summary
To close the revenue account

2) Income Summary
Advertising Expense
Pantry Supplies Expense
Gasoline Expense
Light and Water Expense
Office Supplies Expense
Rent Expense
Representation Expense
Salaries and Other Benefits
Taxes and Licenses Expense
SSS, Pag-ibig, and Philhealth Contribution
Depreciation Expense
Cost of Sales
To close the expense accounts
 Debit Credit

₱ 235,000.00
₱ 235,000.00

₱ 189,416.33
₱ 6,000.00
2,500.00
4,000.00
4,592.86
1,200.00
10,000.00
2,232.14
66,000.00
7,408.00
850.00
2,833.33
81,800.00
 RR Trading Corporation
Post Closing Trial Balance
December 31, 2020

Cash ₱ 141,682.00
Accounts Receivable 16,800.00
Notes Receivable 11,200.00
Advances to employees 5,000.00
Office Supplies 3,800.00
Pantry Supplies 2,500.00
Merchandise Inventory 28,200.00
Rental Deposit 20,000.00
Office Equipment 62,000.00
Accumulated Depreciation - Office Equipment ₱ 1,722.22
Furnitures and Fixtures 40,000.00
Accumulated Depreciation - Furnitures and Fixtures 1,111.11
Accounts Payable 56,000.00
Utilities Payable 5,000.00
VAT Payable 13,365.00
WHT Payable 6,000.00
SSS Premium Payable 1,300.00
Philhealth Payable 500.00
Pag-ibig Payable 600.00
RR Trading, Capital 245,583.67
Total ₱ 331,182.00 ₱ 331,182.00
 RR Trading Corporation
Statement of Comprehensive Income
For the year ended December 31, 2020

Revenue:
Sales Revenue ₱ 235,000.00
Expenses:
Advertising Expense ₱ 6,000.00
Pantry Supplies Expense 2,500.00
Gasoline Expense 4,000.00
Light and Water Expense 4,592.86
Office Supplies Expense 1,200.00
Rent Expense 10,000.00
Representation Expense 2,232.14
Salaries and Other Benefits 66,000.00
Taxes and Licenses Expense 7,408.00
SSS, Pag-ibig, and Philhealth Contribution 850.00
Depreciation Expense 2,833.33
Cost of Sales 81,800.00 ₱ 189,416.33
Profit of the year ₱ 45,583.67
 RR Trading Corporation
Statement of Financial Position
December 31, 2020

Assets
Current Assets:
Cash 141,682.00
Accounts Receivable 16,800.00
Notes Receivable 11,200.00
Advances to employees 5,000.00
Office Supplies 3,800.00
Pantry Supplies 2,500.00
Merchandise Inventory 28,200.00
Total
Non-current Assets:
Rental Deposit
Office Equipment 62,000.00
Less: Accumulated Depreciation - Office Equipment 1,722.22
Furnitures and Fixtures 40,000.00
Less: Accumulated Depreciation - Furnitures and Fixtures 1,111.11
Total Assets
Liabilities and Owner's Equity
Liabilities:
Accounts Payable ₱ 56,000.00
Utilities Payable 5,000.00
VAT Payable 13,365.00
WHT Payable 6,000.00
SSS Premium Payable 1,300.00
Philhealth Payable 500.00
Pag-ibig Payable 600.00
Owner's Equity:
Total Liabilities and Owner's Equity
₱ 209,182.00

20,000.00

60,277.78

38,888.89
₱ 328,348.67

₱ 82,765.00
245,583.67
₱ 328,348.67