ERLIND

WO
DECEM

UNADJUSTED TRIAL BLANCE

Account Titles Debit Credit
Cash 72,000.00
Accounts Receivable 136,000.00
Merchandise Inventory 598,000.00
Office Supplies 42,000.00
Prepaid Advertising 75,000.00
Land 400,000.00
Office Building 1,600,000.00
Accumulated Depreciation- Office Building 100,000.00
Office Equipment 570,000.00
Accumulated Depreciation- Office Equipment 150,000.00
Accounts Payable 74,000.00
Mortgage Payable 1,100,000.00
Notes Payable due in 2 years 200,000.00
Erlinda,Capital 1,510,000.00
Erlinda,Withdrawals 200,000.00
Sales 4,600,000.00
Sales Return and Allowances 187,000.00
Sales Discount 161,000.00
Purchases 2,643,000.00
Purchase Return and Allowances 133,000.00
Purchase Discounts 172,000.00
Transportation In 72,000.00
Insurance Expense 25,000.00
Interest Expense 208,000.00
Salaries Expense 862,000.00
Travel Expense 188,000.00
Total ₱8 039 000.00 ₱8,039,000.00

Office Supplies Expense

Advertising Expense
Salaries Payable
Depreciation Expense- Office Building
Depreciation Expense- Office Equipment
Doubtful Accounts Expense
Allowance for Doubtful Accounts

Net Income
Total
 ERLINDA COMPANY
WORKSHEET
DECEMBER 31,2019

ADJUSTING ENTRIES ADJUSTED TRIAL BALANCE INCOME STATEMENT

Debit Credit Debit Credit Debit
72,000.00
136,000.00
598,000.00 598,000.00
(a) 17,000.00 25,000.00
(b) 25,000.00 50,000.00
400,000.00
1,600,000.00
(d.1) 15,000.00 115,000.00
570,000.00
(d.2) 20,000.00 170,000.00
74,000.00
1,100,000.00
200,000.00
1,510,000.00
200,000.00
4,600,000.00
187,000.00 187,000.00
161,000.00 161,000.00
2,643,000.00 2,643,000.00
133,000.00
172,000.00
72,000.00 72,000.00
25,000.00 25,000.00
208,000.00 208,000.00
(c) 21,000.00 883,000.00 883,000.00
188,000.00 188,000.00

(a) 17,000.00 17,000.00 17,000.00

(b) 25,000.00 25,000.00 25,000.00
(c) 21,000.00 21,000.00
(d.1) 15,000.00 15,000.00 15,000.00
(d.2) 20,000.00 20,000.00 20,000.00
(f) 85,040.00 85,040.00 85,040.00
(f) 85,040.00 85,040.00

5,127,040.00
500,960.00
₱8,180,040.00 ₱8,180,040.00 ₱ 5,628,000.00
INCOME STATEMENT BALANCE SHEET
Credit Debit Credit
72,000.00
136,000.00
723,000.00 723,000.00
25,000.00
50,000.00
400,000.00
1,600,000.00
115,000.00
570,000.00
170,000.00
74,000.00
1,100,000.00
200,000.00
1,510,000.00
200,000.00
4,600,000.00

133,000.00
172,000.00

21,000.00

85,040

5,628,000.00 3,776,000.00 3,275,040.00

500,960.00
₱ 5,628,000.00 ₱ 3,776,000.00 ₱ 3,776,000.00
 Ajusting Entries
a. Office Supplies Expense 17,000
Office Supplies 17,000
To record used office supplies

b. Advertising Expense 25,000

Prepaid Advertising 25,000
To record expired advertising during the year

c. Salaries Expense 21,000

Salaries Payable 21,000
To record accrued salaries

d. Depreciation Expense- Office Building 15,000

Accumulated Depreciation- Office Building 15,000
To record depreciation expense of Office Building

Depreciation Expense- Office Equipment 20,000

Accumulated Depreciation- Office Equipment 20,000
To record depreciation expense of Office Equipment

e.

f. Doubtful Accounts Expense 85,040

Allowance for Doubtful Accounts 85,040
To record doubtful accounts expense
 ERLINDA COMPANY
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED DECEMBER 31,2019

Net Sales
Gross Sales 4,600,000
Less: Sales Returns and Allowances 187,000
Sales Discounts 161,000 348,000
Cost of Sales
Merchandise Inventory, 1/1/19 598,000
Add: Purchases 2,643,000
Transportation In 72,000
Cost of Goods Delivered 2,715,000
Less: Purchase Returns and Allowances 133,000
Purchase Discounts 172,000 305,000 2,410,000
Goods Available for Sale 3,008,000
Less: Merchandise Inventory, 12/31/19 723,000
Gross Profit
Operating Expenses
General and Administrative Expense
Insurance Expense 25,000
Office Supplies Expense 17,000
Depreciation Expense- Office Building 15,000
Depreciation Expense- Office Equipment 20,000
Doubtful Accounts Expense 85,040 162,040
Distribution/ Selling Expense
Salaries Expense 883,000
Advertising Expense 25,000 908,000
Financial Expense
Interest Expense 208,000 208,000
Other Expense
Travel Expense 188,000 188,000
Net Income
 4,252,000

2,285,000
1,967,000

1,466,040
₱500,960.00
 ERLINDA COMPANY
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31,2019

Erlinda, Capital, 1/1/19 1,510,000

Add: Net Income 500,960
Total 2,010,960
Less: Erlinda, Withdrawals 200,000
Erlinda, Capital,12/31/19 ₱1,810,960
 ERLINDA COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF THE YEAR ENDED DECEMBER 31, 2019

ASSETS
Current Assets
Cash
Accounts Receivable 72,000
Less: Allowance for Doubtful Accounts 136,000
Merchandise Inventory,12/31/19 85,040 50,960
Office Supplies 723,000
Prepaid Advertising 25,000
Total Current Assets 50,000
Non-Current Assets 920,960
Land
Office Building 400,000
Less: Accumulated Depreciation- Office Building 1,600,000
115,000 1,485,000
Office Equipment
Less: Accumulated Depreciation- Office Equipment 570,000
Total Non-Current Assets 170,000 400,000
Total Assets 2,285,000
₱3,205,960.00
LIABILITIES AND OWNER'S EQUITY
Current Liabilities
Accounts Payable
Salaries Payable 74,000
Total Current Liabilities 21,000
Non-Current Liabilities 95,000
Mortgage Payable
Notes Payable 1,100,000
Total Non- Current Liabilities 200,000
Total Liabilities 1,300,000
1,395,000
Owner's Equity
Erlinda, Capital 1,810,960
Total Liabilities and Owner's Equity ₱ 3,205,960.00
Closing Entries

Date Account Titles and Explanation Debit Credit

2019
Dec. 31 Merchandise Inventory, 12/31/19 723,000
Sales 4,600,000
Purchase Returns and Allowances 133,000
Purchase Discounts 172,000
Income Summary 5,628,000
To close temporary accounts with credit balances

31 Income Summary 3,661,000

Merchandise Inventory, 1/1/19 598,000
Sales Returns and Allowances 187,000
Sales Discount 161,000
Purchases 2,643,000
Transportation In 72,000
To close temporary accounts with debit balances

31 Income Summary 1,466,040

Insurance Expense 25,000
Interest Expense 208,000
Salaries Expense 883,000
Travel Expense 188,000
Office Supplies Expense 17,000
Advertising Expense 25,000
Depreciation Expense- Office Building 15,000
Depreciation Expense- Office Equipment 20,000
Doubtful Accounts Expense 85,040
To close the expense accounts

31 Income Summary 500,960

Erlinda, Capital 500,960
To close the income summary account to capital

31 Erlinda, Capital 200,000

Erlinda, Withdrawals 200,000
To close the withdrawal account