Professional Documents
Culture Documents
November transactions:
December transactions:
1
Requirement (b): Posting
ASSETS
Cash Inventory, beg.
Nov. 1 100,000 beg. 0
72,000 Nov. 1
24,000 Nov. 1
Nov. 14 30,000 30,000 Nov. 12
Dec. 29 20,000 2,000 Dec. 27
Bal. 22,000 Bal. 0
LIABILITIES
Accounts payable
Dec. 27 2,000 4,000 Dec. 5
2,000 Bal.
EQUITY
Owner’s equity
100,000 Nov.1
100,000 Bal.
INCOME EXPENSES
Sales Purchases
30,000 Nov. 14 Nov. 12 30,000
24,000 Dec. 1 Dec. 5 4,000
34,000 Dec. 26
88,000 Bal. Bal. 34,000
2
Requirement (c): Unadjusted trial balance
Entity A
Unadjusted Trial Balance
December 31, 20x1
Accounts Debit Credit
Cash ₱22,000
Accounts receivable 14,000
Notes receivable 24,000
Inventory, beg. 0
Prepaid insurance 24,000
Equipment 72,000
Accounts payable ₱2,000
Owner’s equity 100,000
Sales 88,000
Purchases 34,000
₱190,000 ₱190,000
3
Requirement (e): Worksheet
4
Requirement (f): Closing entries
Income
summary
46,200 Bal.
Entity A
Balance Sheet
As of December 31, 20x1
ASSETS
Cash ₱22,000
Accounts receivable 14,000
Allowance for bad debts (2,000)
Interest receivable 200
Note receivable 24,000
Inventory 21,000
Prepaid insurance 20,000
Equipment 72,000
Accumulated depreciation (3,000)
TOTAL ASSETS ₱168,200
LIABILITIES
Accounts payable ₱2,000
5
Salaries payable 20,000
TOTAL LIABILITIES 22,000
EQUITY
Owner's equity 146,200
Entity A
Income Statement
For the two months ended December 31, 20x1
Sales 88,000
Cost of goods sold:
Inventory, beg. -
Purchases 34,000
Total Goods Available for
Sale 34,000
Inventory, end. (21,000) (13,000)
GROSS PROFIT 75,000
Interest income 200
Salaries expense (20,000)
Depreciation expense (3,000)
Bad debts expense (2,000)
Insurance expense (4,000)
PROFIT 46,200
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