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Midterm 1217
Midterm 1217
Work Sheet
December 31, 2021
Sales 841,300
Sales Discounts -2,000
Net Sales 839,300
Less: Cost of Goods Sold
Merchandise Inventory, Beginning 350,000
Purchases 300,000
Freight-in 2,500
Purchase Returns and Allowances -5,000
Purchase Discount -10,000 637,500
Goods Available for Sale 637,500
Merchandise Inventory End -80,000 557,500
Gross Profit 281,800
Less: Expenses
Salaries Expense 72,000
Advertising Expense 25,000
Rent Expense 16,000
Insurance Expense 6,000
Freight-out 5,000
Utilities Expense 4,000
Depreciation Expense - Delivery Equipment 3,000
Depreciation Expense - Furniture and Fixtures 1,200 132,200
Net Income 149600
Income Statement Statement of
Financial Position
Credit Debit Credit
300,000
220,000
80,000
18,000
32,000
180,000
36,000
72,000
14,400
40,000
100,000
600,000
50,000
841,300
10,000
5,000
12,000
ASSETS
Current Assets
Cash 300,000
Accounts Receivable 220,000
Merchandise Inventory 80,000
Prepaid Insurance 18,000
Prepaid Rent 32,000 650,000
Non-current Assets
Delivery Equipment 180,000
Accumulated Depreciation - Delivery Equipment -36,000
Furniture and Fixtures 72,000
Accumulated Depreciation - Furniture and Fixtures -14,400 201,600
Total Assets: 851600
LIABILITIES AND EQUITY
Liabilities
Accounts Payable 40,000
Notes Payable (due in 2022) 100,000
Salaries Payable 12,000 152,000
Total Liabilities: 152,000
Equity
Paul, Capital 699,600
Total Liablities and Equity 851600
MZM Grocery Store
General Journal
As of the month December 31, 2021
Debits Credits
Paul, Capital Total: 452,100 699,600
(After closing entries) 50,000
197,500