Problem 23

DEBIT CREDIT
1-Feb Cash 113,000
Accounts Recievable 113,000

2-Feb Accounts Payable 64,000

Cash 62,080
Purchase Discounts 1,920

4-Feb Purchases 170,000

Accounts payable 170,000

5-Feb Accounts Receivable 270,000

Sales 270,000

7-Feb Advertising expense 6,000

Cash 6,000

Cash 250,000
Sales 250,000

8-Feb Accounts payable 170,000

Cash 164,900
Purchase discounts 5,100

9-Feb Transportation In 4,000

Cash 4,000

10-Feb Sales returns and allowances 70,000

Accounts receivable 70,000

12-Feb Cash 196,000

Sales discount 4,000
Accounts receivable 200,000

14-Feb Interest expense 26,000

Cash 26,000

15-Feb Salaries expense 51,000

Cash 51,000

16-Feb Accounts receivable 392,000

Sales 392,000

18-Feb Transportation Out 4,000

Cash 4,000

19-Feb Supplies 21,000

 Cash 21,000

20-Feb Purchases 125,000

Accounts payable 125,000

22-Feb Miscellaneous expense 7,000

Cash 7,000

23-Feb Cash 384,160

Sales discount 7,840
Accounts receivable 392,000

24-Feb Purchases 373,000

Accounts payable 373,000

Transportation In 9,000
Cash 9,000

25-Feb Accounts receivable 420,000

Sales 420,000

26-Feb Sales returns and allowances 71,000

Accounts receivable 71,000

28-Feb Buenaflor, Withdrawals 400,000

Cash 400,000

Accounts payable 25,000

Purchase returns and allowances 25,000
 TERESITA BUENAFLOR SHOES
GENERAL LEDGER
FOR THE MONTH OF FEBRUARY 2019

CASH
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
Feb-01 Sold merchandise 113,000
02 Payment of merchandise 62,080
07 Payment for advertising 6,000
07 Cash sales 250,000
08 Payment for merchandise 164,900
09 Payment for freight charges 4,000
12 Collection of receivable 196,000 0
14 Payment for interest 26,000
15 Payment for salaries 51,000
18 Payment for freight charges 4,000
19 Payment of supplies 21,000
22 Payment of miscellaneous 7,000
23 Collection of receivable 384,160
24 Payment of freight charges 9,000
28 Owner's withdrawal 400,000

ACCOUNTS RECEIVABLE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
01 Collection from customer 113,000
05 Sold merchandise on account 270,000
10 Returns of merchandise 70,000
12 Collection from customer 200,000
16 Sold merchandise on account 392,000
23 Collection from customer 392,000
25 Sold merchandise on account 420,000
26 Returns of merchandise 71,000

MERCHANDISE INVENTORY
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

OFFICE SUPPLIES
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
19 Bought supplies 21,000
 PREPAID INSURANCE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

LAND
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

BUILDING
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

ACCUMULATED DEPRECIATION - BUILDING

DATE TRANSACTION DEBIT CREDIT
Beginning Balance

EQUIPMENT
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

ACCUMULATED DEPRECIATION - EQUIPMENT

DATE TRANSACTION DEBIT CREDIT
Beginning Balance
630,000

ACCOUNTS PAYABLE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
02 Payment of purchases 64,000
04 Purchases on account 170,000
08 Payment of purchases 170,000
20 Purchases on account 125,000
24 Purchases on account 373,000
28 Returns of purchases 25,000
 MORTGAGE PAYABLE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

BUENAFLOR, CAPITAL
DATE TRANSACTION DEBIT CREDIT
Beginning Balance

BUENAFLOR, DRAWING
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
28 Owner's withdrawal 400,000

SALES
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
05 Merchandise sold on account 270,000
07 Cash sales 250,000
16 Merchandise sold on account 392,000
25 Merchandise sold on account 420,000

SALES RETURNS AND ALLOWANCES

DATE TRANSACTION DEBIT CREDIT
Beginning Balance
10 Received returned defective goods 70,000
26 Received returned defective goods 71,000

SALES DISCOUNT
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
12 Collection within the discount period 4,000
23 Collection within the discount period 7,840

PURCHASES
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
04 Credit purchases 170,000
20 Credit purchases 125,000
24 Credit purchases 373,000
 PURCHASE RETURNS AND ALLOWANCES
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
28 Returned defective goods 25,000

PURCHASE DISCOUNT
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
02 Payment within the discount period 1,920
08 Payment within the discount period 5,100

TRANSPORTATION IN
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
09 Freight charges 4,000
24 Freight charges 9,000

SALARIES EXPENSE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
15 Payment for salaries 51,000
Current Period Change 51,000
Ending Balance

TRANSPORTATION OUT
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
18 Freight Charges 4,000

ADVERTISING EXPENSE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
07 Paid Advertising 6,000

INTEREST EXPENSE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
14 Paid the interest 26,000
 MISCELLANEOUS EXPENSE
DATE TRANSACTION DEBIT CREDIT
Beginning Balance
22 Paid miscellaneous fee 7,000
 110
BALANCE
33,000
146,000
83,920
77,920
327,920
163,020
159,020
355,020
329,020
278,020
274,020
253,020
246,020
630,180
621,180
221,180

120
BALANCE
192,000
79,000
349,000
279,000
79,000
471,000
79,000
499,000
428,000

130
BALANCE
413,000

140
BALANCE
51,000
72,000
 150
BALANCE
48,000

160
BALANCE
460,000

170
BALANCE
1,750,000

175
BALANCE
350,000

180
BALANCES
2,310,000

185
BALANCE
-
630,000

210
BALANCE
108,000
44,000
214,000
44,000
169,000
542,000
517,000
 230
BALANCE
2,600,000

310
BALANCE
1,569,000

320
BALANCE

400,000

410
BALANCE
-

1,332,000.00

420
BALANCE
-

430
BALANCE
-
4,000
11,840

510
BALANCE
-
170,000
295,000
668,000
 520
BALANCE
-
25,000

530
BALANCE
-
1,920
7,020

540
BALANCE
-
4,000
13,000

610
BALANCE
-

51,000
51,000

660
BALANCE
-
4,000

670
BALANCE
-
6,000

680
BALANCE
-
26,000
 690
BALANCE
-
7,000
 TERESITA BUENAFLOR SHOES
UNADJUSTED TRIAL BALANCE
February 28, 2019

ACCOUNT NO. ACCOUNT TITLE DEBIT

110 CASH 221,180
120 ACCOUNTS RECEIVABLES 428,000
130 MERCHANDISE INVENTORY 413,000
140 SUPPLIES 72,000
150 PREPAID INSURANCE 48,000
160 LAND 460,000
170 BUILDING 1,750,000
175 ACCUMULATED DEPRECIATION-BUILDING
180 EQUIPMENT 2,310,000
185 ACCUMULATED DEPRECIATION-EQUIPMENT
210 ACCOUNTS PAYABLE
220 SALARIES PAYABLE
230 MORTGAGE PAYABLE
310 BUENAFLOR, CAPITAL
320 BUENAFLOR, WITHDRAWAL 400,000
330 INCOME SUMMARY
410 SALES
420 SALES RETURNS AND ALLOWANCES 141,000
430 SALES DISCOUNTS 11,840
510 PURCHASES 668,000
520 PURCHASES RETURNS AND ALLOWANCES
530 PURCHASES DISCOUNTS
540 TRANSPORTATION IN 13,000
610 SALARIES EXPENSE 51,000
620 SUPPLIES EXPENSE
630 INSURANCE EXPENSE
640 DEPRECIATION EXPENSE-BUILDING
650 DEPRECIATION EXPENSE-EQUIPMENT
660 TRANSPORTATION OUT 4,000
670 ADVERTISING EXPENSE 6,000
680 INTEREST EXPENSE 26,000
690 MISCELLANEOUS EXPENSE 7,000
7,030,020
CREDIT

350,000

630,000
517,000

2,600,000
1,569,000

1,332,000

25,000
7,020

7,030,020
 TERESITA BUENAFLOR SHOES
ADJUSTING ENTRIES
FOR THE MONTH ENDED FEBRUARY 28, 2019

DEBIT CREDIT
A. Salaries Expense 51,000
Salaries Payable 51,000

B. Insurance Expense 2,000

Prepaid Insurance 2,000

C. Depreciation Expense 9,000

Accumulated Depreciation - building 9,000

Depreciation Expense 12,000

Accumulated Depreciation- equipment 12,000

D. Supplies Expense 58,000

Supplies 58,000

E. Merchandise Inventory, 02/28/19 397,000

Income Summary 397,000
 TERESITA BUENAFLOR SHOES
WORKSHEET
FEBRUARY 28,2019
UNADJUSTED TRIAL BALANCE
DEBIT CREDIT
Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 413,000
Supplies 72,000
Prepaid Insurance 48,000
Land 460,000
Building 1,750,000
Accumulated Depreciation - Building 350,000
Equipment 2,310,000
Accumulated Depreciation - Equipment 630,000
Accounts Payable 517,000
Salaries Payable
Mortgage Payable 2,600,000
Buenaflor, Capital 1,569,000
Buenaflor, Withdrawals 400,000
Income Summary
Sales 1,332,000
Sales Returns and Allowances 141,000
Sales Discounts 11,840
Purchases 668,000
Purchase Returns and Allowances 25,000
Purchase Discounts 7,020
Transaportation In 13,000
Salaries Expense 51,000
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out 4,000
Advertising Expense 6,000
Interest Expense 26,000
Miscellaneous Expense 7,000

7,030,020 7,030,020
Profit or Loss to Retained Earnings
 ADJUSTMENTS ADJUSTED TRIAL BALANCE STATEMENT OF PROFIT OR
DEBIT CREDIT DEBIT CREDIT DEBIT
221,180
428,000
413,000 413,000
58,000 14,000
2,000 46,000
460,000
1,750,000
9,000 359,000
2,310,000
12,000 642,000
517,000
51,000 51,000
2,600,000
1,569,000
400,000

1,332,000
141,000 141,000
11,840 11,840
668,000 668,000
25,000
7,020
13,000 13,000
51,000 102,000 102,000
58,000 58,000 58,000
2,000 2,000 2,000
9,000 9,000 9,000
12,000 12,000 12,000
4,000 4,000
6,000 6,000
26,000 26,000
7,000 7,000

132,000 132,000 7,102,020 7,102,020 1,472,840

288,180
1,761,020
EMENT OF PROFIT OR LOSS STATEMENT OF FINANCIAL POSITION
CREDIT DEBIT CREDIT
221,180
428,000
397,000 397,000
14,000
46,000
460,000
1,750,000
359,000
2,310,000
642,000
517,000
51,000
2,600,000
1,569,000
400,000

1,332,000

25,000
7,020

1,761,020 6,026,180 5,738,000

288,180
1,761,020 6,026,180 6,026,180
 TERESITA BUENAFLOR SHOES
STATEMENT OF PROFIT OR LOSS
FEBRUARY 28, 2019

Net Sales
Gross Sales
Less: Sales Returns and Allowances
Sales Discount
Net Sales
Cost of Sales
Merchandise Inventory, 2/1/2019
Purchases 668,000
Less: Purchases Return and Allowances 25,000
Purchase Discount 7,020 32,020
Net Purchases 635,980
Transportation In 13,000
Net Cost of Purchases
Goods Available for Sale
Less: Merchandise Inventory, 2/28/2019
Cost of Sales
Gross Profit
Operating Expense
Selling Expense
Transportation Out 4,000
Advertising Expense 6,000
Total Selling Expenses
Administrative Expense
Salaries Expense 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense-Building 9,000
Depreciation Expense-Equipment 12,000
Total Administrative Expense
Other Operating Expenses
Interest Expense 26,000
Miscellaneous Expense 7,000
Total Other Operating Expenses
Operating Profit

NET INCOME
OES
LOSS

1,332,000
141,000
11,840 152,840
1,179,160

413,000

648,980
1,061,980
397,000
664,980
514,180

10,000

183,000

33,000 226,000
288,180

288,180
 TERESITA BUENAFLOR SHOES
STATEMENT OF CHANGES IN EQUITY
2/28/2019

Buenfalor, Owner's Equity, 2/1/2019 1,569,000

Add: Profit 288,180
Total 1,857,180
Less: Withdrawals 400,000
Buenfalor, Owner's Equity, 2/28/2019 1,457,180
 TERESITA BUENAFLOR SHOES
STATEMENT OF FINANCIAL POSITION
FEBRUARY 28, 2019

Assets
Curent Assets
Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Inssurance 46,000
Total Current Assets 1,106,180

Non Current Assests

Land 460,000
Building 1,750,000
Less: Accumulated Depreciation- 359,000 1,391,000
Equipment 2,310,000
Less: Accumulated Depreciation- 642,000 1,668,000
Total Non-Current Assets 3,519,000

Total Asset 4,625,180

Liabilities and Owner's Equity

Liabilities
Current Liabilities
Accounts Payable 517,000
Salaries Payable 51,000
Total Current Liabilities 568,000

Non Current Liabilities

Mortgage Payable 2,600,000

Total Liabilities 3,168,000

Owner's Equity
Buenaflor, Capital 2/1/2019 1,569,000
Less: Buenaflor, Withdrawals 400,000
Add: Net Income 288,180
Total Owner's Equity 1,457,180

Total Liabilities and Owner's Equity 4,625,180