Date Account Title Debit Credit

Date Account Title Debit Credit

1/1/2020 Cash 500,000
ISCool,Capital 500,000
To record initial investment made by Julian Adam Pagal

Cash 240,000
ISCool,Capital 240,000
To record initial investment made by Julian Adam Pagal

Freight-in 2,400
Cash 2,400
Paid freight charges

10/1/2020 Accounts Payable 40,000

Purchase Returns and Allowances 40,000
Returned defective merchandise

Accounts Payable 200,000

Purchase discount (200,000x2%) 4,000
Cash (200,000-4,000) 196,000
Purchase merchandise on account
# P200,000 200,000

1/3/2020 Rent Expense [(50,000/24)x2] 4,167

Prepaid Rent (50,000-4,167) 45,833
Cash 50,000
Paid 2-year rent
# 50,000 50,000

9/4/2020 Accounts Receivable 105,000

Sales 105,000
Sold merchandise on account

Freight-out 1,040
Cash 1,040
Paid Freight charges

4/19/2020 Sales Returns and Allowances 20,000

Accounts Receivable 20,000
Received defective merchandise sold on account

Cash (42,500 - 850) 41,650

Sales Discount (42,500 x 2%) 850
Accounts Receivable 42,500
Collection from customers sold on account
# 42,500 42,500

8/5/2020 Equipment 18,000

 Notes Payable 18,000
Bought Equipment issuing a promissory note

Office Supplies 5,000

Cash 5,000
Bought Office Supplies using cash

9/29/2020 Purchases 100,500

Accounts Payable 100,500
Purchase merchandise on account

Freight-in 2,000
Cash 2,000
Paid Freight charges

4/10/2020 ISCool, Drawing 20,000

Cash 20,000
Withdraw cash for personal use

12/15/2020 Utilities Expense 3,000

Advertising Expense 5,000
Miscellaneous Expense 8,000
Cash 16,000
Paid expenses for the year
# 16,000 16,000

Adjustments
Salaries expense 10,000
Salaries payable 10,000

Depreciation expense 7,500

Accumulated depreciation- computer equipment 7,500

Office Supplies expense (5,000-3,000) 2,000

Office Supplies 2,000

Bad debts expense 6,000

Allowance for Doubtful Account 6,000

Rent Expense [(45,833/22) x 10] 20,833

Prepaid Rent 20,833
 Worksheet
For the year ended Decem
Trial Balance
Debit Credit
ASSETS
Current Asset
Cash 249,210
Accounts receivable 42,500
Allowance for Doubtful Account
Prepaid Rent 45,833
Merchandise Inventory
Office supplies 5,000
Non-Current Asset
Computer equipment 18,000
Accumulated Depreciation- Equipment
LIABILITIES
Current Liabilities
Accounts payable 100,500
Notes payable 18,000
Salaries Payable
EQUITY
ISCool, Capital 500,000
ISCool, Drawing 20,000
INCOME
Sales 105,000
Sales discount 850
Sales return and allowances 20,000
EXPENSES
Purchases 340,500
Purchase discount 4,000
Purchases return and allowances 40,000
Freight in 4,400
Freight out 1,040
Utilities expense 3,000
Rent expense 4,167
Depreciation Expense
Office Supplies Expense
Bad Debt Expense
Advertising Expense 5,000
Salaries Expense
Miscellaneous Expense 8,000
TOTAL 767,500 767,500
NET LOSS
 Worksheet
For the year ended Decemeber 31,2020
Adjustment Adjusted Trial Balance Income Statement
Debit Credit Debit Credit Debit Credit

249,210
42,500
6,000 6,000
20,833 25,000
250,000
2,000 3,000

18,000
7,500 7,500

100,500
18,000
10,000 10,000

500,000
20,000

105,000 105,000
850 850
20,000 20,000

340,500 340,500
4,000 4,000
40,000 40,000
4,400 4,400
1,040 1,040
3,000 3,000
20,833 25,000 25,000
7,500 7,500 7,500
2,000 2,000 2,000
6,000 6,000 6,000
5,000 5,000
10,000 10,000 10,000
8,000 8,000
46,333 46,333 791,000 791,000 433,290 399,000
34,290
433,290 433,290
 Balance Sheet
Debit Credit

249,210
42,500
6,000
25,000
250,000
3,000

18,000
7,500

100,500
18,000
10,000

500,000
20,000

607,710 642,000
34,290
642,000 642,000