Leopoldo Valdez School Chairs

Partial Income Statement

For the Year Ended Dec. 31, 2020
Cost of Sales
Merchandise Inventory, 1/1/2020 ₱1,200,000
Purchases ₱4,300,000
Less: Purchases Return and Allowances ₱129,000
Purchases Discounts 215,000 ₱344,000
Net Purchases ₱3,956,000
Transportation In 172,000
Net Cost of Purchase ₱4,128,000
Good Available for Sale ₱5,328,000
Less: Merchandise Inventory, 12/31,2020 1,900,000
Cost of Sales ₱3,428,000
 Cristina Santiago Shirts
Cost of Sales
Merchandise Inventory, 1/1/2020 ₱300,000
Purchases ₱1,320,000
Less: Purchases Return and Allowances ₱46,200
Purchases Discounts 26,400 ₱72,600
Net Purchases ₱1,247,400
Transportation In 39,600
Net Cost of Purchase ₱1,287,000
Good Available for Sale 1,587,000
Less: Merchandise Inventory, 12/31,2020 327,000
Cost of Sales 1,260,000
 1 2
Net Sales a. 120,000 d, 180,000
Merchandise Inventory, 1/1/2020 b. 30,000 50,000
Net Cost of Purchases 80,000 e. 110,000 g.
Goods Available for Sales 110,000 160,000 h.
Merch. Inventory, 1/31/2020 40,000 f. 20,000
Cost of Good Sold c. 70,000 140,000
Gross Profit 50,000 40,000 i.

FORMULA: Net Sales = COGS + GP

Merch Inv. 1/1/20 = GAS-NCP
NCP = GAS - Merch.inv. 1/1/20
GAS = Merch.inv. 1/1/20 + NCP
Merch.inv. 1/31/20= GAS - COGS
COGS = NS - GP
GP = NS - COGS
COGS= GAS- Ending Inv

SAME MISSING; COGS = GAS - End Inven.

GAS = END + COGS
NCP = GAS - Beg. Inven.
3 4 5
250,000 290,000 400,000
70,000 j. 40,000 120,000
190,000 160,000 390,000
260,000 k. 200,000 m. 510,000
30,000 70,000 n. 130,000
230,000 l. 130,000 380,000
20,000 160,000 o. 20,000
 1 2
Net Sales 100,000 d. 130,000
Beginning inventory 15,000 12,000 g.
Net Cost of Purchases 55,000 e. 53,000
Goods Available for Sales a. 70,000 f, 65,000
Ending Inventory 10,000 25,000 h.
Cost of Good Sold b, 60,000 40,000 i.
Gross Profit c. 40,000 90,000

FORMULA: Net Sales = COGS + GP

Beg,Ivent. = GAS - NCP
NCP = GAS - Beg.Inven
GAS = Beg. Inven + NCP
Ending Inven.= GAS - COGS
COGS = NS - GP
GP = NS - COGS

SAME MISSING; COGS = GAS - End Inven.

GP= NS - COGS
GAS = END + COGS
NCP = GAS - Beg. Inven.
 3 4
200,000 240,000
20,000 30,000
125,000 95,000
145,000 j. 125,000
30,000 k. 15,000
115,000 l. 110,000
85,000 130,000
 Maribeth Villon Store
Dec 31 Income Summary ₱300,000
Merchandise Inventory, Beginning
To remove beginning balance of merchandise
inventory and transfer it to income summary.

Dec 31 Merchandise Inventory, End 230,000

Income Summary
To establish ending balance of merchandise
inventory and deduct it from goods available
for sale in income summary.
₱300,000

230,000
 PERIOD
1 2 3
Beginning inventory 50,000 36,000 36,000
Net Cost of Purchases 90,000 110,000 100,000
Goods Available for Sales 140,000 146,000 136,000
Ending Inventory 36,000 36,000 44,000
Cost of Good Sold 104,000 110,000 92,000
 4
44,000
90,000
134,000
32,000
102,000
 Maribeth Villon Store
Dec 31 Income Summary ₱80,000
Merchandise Inventory, Beginning
To remove beginning balance of merchandise
inventory and transfer it to income summary.

Dec 31 Merchandise Inventory, End 74,000

Income Summary
To establish ending balance of merchandise
inventory and deduct it from goods available
for sale in income summary.
 Charito Guillermo Retailers
Partial Income Statement
₱80,000 For the Year Ended Dec. 31, 2020
Net Sales
Sales
Less: Sales Return & Allowances
Net Sales
74,000 Cost of Sales
Merchandising Inventory, 1/1/2020
Purchases 60,000
Less: Purchases Discounts ₱3,000
Net Purchases ₱57,000
Transportation In 1,000
Net Cost of Purchases
Goods Available for Sale
Less: Merchandise Inventory, 12/31,2020
Cost Sales
Gross Profit
ailers
ment
31, 2020

₱190,000
₱20,000
₱170,000

₱80,000

58,000
₱138,000
74,000
64,000
₱106,000
Net Sales
Gross Sales ₱1,610,000
Less: Sales Returns & Allowances ₱45,000
Sales Discount 15,000 60,000
Net Sales
Cost of Goods Sold
Inventory, Jan. 1, 2020 ₱220,000
Purchases ₱985,000
Less:Purchases Returns & Allowances ₱31,000
Purchases Discounts 20,000 51,000
Net Purchases ₱934,000
Transportation-In 36,000
Net Cost of Purchases 970,000
Cost of Goods Available for Sale ₱1,190,000
Less: Inventory, Dec. 31, 2020 260,000
Cost of Goods Sold
Gross Margin from Sales
Operating Expense
Profit
₱1,550,000

930,000
₱620,000
465,000
₱155,000
 Income Statement Balance Sheet
Account Title Debit Credit Debit
Merchandise Inventory, Beginning ü
Sales ü
Sales Return & Allowances ü
Purchases ü
Purchases Return & Allowances ü
Purchases Discounts ü
Transportation In ü
Salaries Payable
Merchandise Inventory, Ending ü ü
Balance Sheet
Credit

ü
 Christine Sousa Bags
Worksheet
For the Year Ended Dec. 31, 2020
Trial Balance Adjustments
Account Title Debit Credit Debit
Cash ₱72,000
Account Receivable 136,000
Merchandise Inventory Beginning 598,000
Office Supplies 42,000 A
Prepaid Advertising 75,000 B
Land 400,000
Office Building 1,600,000
Accumulated Depreciation-Off.Bldg. ₱100,000 D
Office Equipment 570,000
Accumulated Depreciation-Office Eqpt. 150,000 D
Account Payable 74,000
Salaries Payable C
Mortage Payable 1,100,000
Note Payable due in 2 years 200,000
Sousa, Capital 1,510,000
Sousa, Withdrawals 200,000
Income Summary
Sales 4,600,000
Sales Returns & Allowances 187,000
Sales Discounts 161,000
Purchases 2,643,000
Purchases Returns & Allowances 133,000
Purchase Discounts 172,000
Transportation In 72,000
Salaries Expense 862,000 C ₱21,000
Office Supplies Expense A 17,000
Insurance Expense 25,000
Advertising Expense B 25,000
Travel Expense 188,000
Depreciation Expense-Off.Bldg. D 15,000
Depreciation Expense-Office Eqpt. D 20,000
Interest Expense 208,000

₱8,039,000 ₱8,039,000 ₱98,000

Profit
hristine Sousa Bags
Worksheet
Year Ended Dec. 31, 2020
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit
₱72,000 ₱72,000
136,000 136,000
598,000 ₱598,000 ₱723,000 723,000
₱17,000 25,000 25,000
25,000 50,000 50,000
400,000 400,000
1,600,000 1,600,000
15,000 ₱115,000 ₱115,000
570,000 570,000
20,000 170,000 170,000
74,000 74,000
21,000 21,000 21,000
1,100,000 1,100,000
200,000 200,000
1,510,000 1,510,000
200,000 200,000
0
4,600,000 4,600,000
187,000 187,000
161,000 161,000
2,643,000 2,643,000
133,000 133,000
172,000 172,000
72,000 72,000
883,000 883,000
17,000 17,000
25,000 25,000
25,000 25,000
188,000 188,000
15,000 15,000
20,000 20,000
208,000 208,000
₱5,042,000 ₱5,628,000 ₱3,190,000
₱98,000 ₱8,095,000 ₱8,095,000 586,000 586,000
₱5,628,000 ₱5,628,000 3,776,000 3,776,000
 Christine Sousa Bags
Income Statement
For the Year Ended Dec. 31, 2020
Net Sales
Gross Sales
Less: Sales Return & Allowances
Sales Discount
Net Sales
Cost of Sales
Merchandising Inventory, 1/1/2020
Purchases ₱2,643,000
Less: Purchases Rets.& Allow. ₱133,000
Purchases Discounts 172,000 305,000
Net Purchases ₱2,338,000
Transportation In 72,000
Net Cost of Purchases
Goods Available for Sale
Less: Merchandise Inventory, 12/31,2020
Cost Sales
Gross Profit
Operating Expenses
Selling Price
Sales Salaries ₱883,000
Travel Expense 188,000
Insurance Expense 25,000
Total Selling Expense
Administrative Expense
Office Supplies Expense ₱17,000
Advertising Expense 25,000
Depreciation Expense- Off. Bldg. 15,000
Depreciation Expense- Off. Equipt. 20,000
Interest Expense 208,000
Total Administrative Expense
Total Operating Expenses
Operating Profit
Finance Cost
Profit
020

₱4,600,000
₱187,000
161,000 348,000
₱4,252,000

₱598,000

2,410,000
₱3,008,000
723,000
2,285,000
₱1,967,000

₱1,096,000

₱285,000
1,381,000
₱586,000
 Christine Sousa Bags
Statement of Changes in Equity
For the Year Ended Dec. 31, 2020
Christine Sousa, Owner's Equity, 1/1/2020
Add: Profit
Total:
Less: Withdrawals
Christine Sousa, Owner's Equity, 12/31/2020
uity
2020
1,510,000
586,000
2,096,000
200,000
1,896,000
 Christine Sousa Bags
Balance Sheet
Dec. 31,2020
ASSETS
Currents Assets
Cash ₱72,000
Accounts Receivable 136,000
Merchandise Inventory 723,000
Office Supplies 25,000
Prepaid Advertising 50,000
Total Currents Assets
Property and Equipment (net)
Land ₱400,000
Office Building ₱1,600,000
Less: Accu. Depreciation-Off Buildings 115,000 ₱1,485,000

Office Equipment ₱570,000

Less: Accu. Depreciation-Off Equipment 170,000 400,000
Total Assets
Liabilities
Current Liabilities
Accounts Payable 74,000
Salaries Payable 21,000
Total Current Liabilities
Non-Current Liabilities
Notes Payable in 2 years 200,000
Mortage Payable 1,100,000
Total Liabilities
Owners' Equity
Christine Sousa, Capital, Dec. 31
Total Liabilities and Owner' Equity
SETS

₱1,006,000

2,285,000
₱3,291,000
bilities

₱95,000

1,300,000
₱1,395,000
s' Equity
1,896,000
₱3,291,000
 Adjusting Entry
Christine Sousa Bags
DATE ACCOUNT TITLE & EXPLANATION DEBIT
Dec. 31 Office Supplies Expense ₱17,000
Office Suplies
To record accrued office supplier used

31 Advertising Expense 25,000

Prepaid Advertising
To record accrued advertising used

31 Salaries Expense 21,000

Salaries Payable
To record accrued salary

31 Depreciation Expense-Off Bldg 15,000

Accu.Depreciation-Off Bldg
To record Depreciation-Off Bldg

31 Depreciation Expense-Off Equipt 20,000

Accu.Depreciation-Off Equipt
To record depreciation office equipment

31 Merchandise Inventory, End 723,000

Income Summary
To establish ending balance of merchandise inventory
and deduct it from goods available for sale in income
summary.

31 Income Summary 598,000

Merchandise Inventorybalance of merchandise
To remove beginning
inventory and transfer it to income summary.
CREDIT

₱17,000

25,000

21,000

15,000

20,000

723,000

598,000
 Closing Entry
Christine Sousa Bags
DATE ACCOUNT TITLE & EXPLANATION PR DEBIT
2020
Dec. 31 Merchandise Inventory,End ₱723,000
Sales 4,600,000
Purchase Returns & Allowances 133,000
Purchases Discounts 172,000
Income Summary
To close temporary accounts with credit
balances and to establish the ending
merchandise inventory

31 Income Summary 5,042,000

Merchandise Inventory, Beg.
Sales Returns & Allowances
Sales Discounts
Purchases
Transportation In
Salaries Expense
Office Supplies Expense
Insurance Expense
Advertising Expense
Travel Expense
Depreciation Expense- Off. Bldg.
Depreciation Expense- Off. Equipt.
Interest Expense
To close temporary accounts with debit
balances and to remove beginning
merchandise inventory

Income Summary 586,000

Sousa, Capital
To close th income summary account

Sousa, Capital 200,000

Sousa, Withdrawals
To close the withdrawals account

TOTAL: ₱11,256,000
CREDIT

5,628,000

598,000
187,000
161,000
2,643,000
72,000
883,000
17,000
25,000
25,000
188,000
15,000
20,000
208,000

586,000

200,000

11,256,000