MZM Grocery Store

Work Sheet
December 31, 2021

Unadjusted Trial Adjustments Income Statement

Balance
Debit Credit Debit Credit Debit
Cash 300,000
Accounts REceivables 220,000
Merchandise Inventory 350,000 80,000 350,000
Prepaid Insurance 24,000 6,000
Prepaid Rent 48,000 16,000
Delivery Equipment 180,000
Accumulated Depreciation-Equipment 33,000 3,000
Furniture and Fixture 72,000
Accumulated Depreciation-Furniture and Fixture 13,200 1,200
Accounts Payable 40,000
Notes Payable(due on 2020) 100,000
Paul, Capital 600,000
Paul,Drawing 50,000
Sales 841,300
Sales Discount 2,000 2,000
Purchases 300,000 300,000
Purchases Discount 10,000
Purchases Return and Allowances 5,000
Freight- In 2,500 2,500
Freight -Out 5,000 5,000
Salaries Expense 60,000 12,000 72,000
Utilities Expense 4,000 4,000
Advertising Expense 25,000 25,000
TOTAL 1,642,500 1,642,500
Adjustment
Salaries Payable 12,000
Insurance Expense 6,000 6,000
Rent Expense 16,000 16,000
Depreciation Expense-Delivery Equipment 3,000 3,000
Depreciation Expense -Furniture and Fixture 1,200 1,200
Income Summary 350,000 80,000 270,000
TOTALS 468,200 468,200 706,700
Net Income 149,600
856,300
 MZM Grocery Store
Income Statement
For the month ended 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

856,300 952,000 802,400

149,600
856,300 952,000 952,000
 MZM Grocery Store
Statement of Changes in Equity
For the month ended December 31, 2021

Paul, Capital Beginning 600,000

Add: Net Income 149,600
Less: Paul, Drawings 50,000
Paul, Capital End 699,600

MZM Grocery Store

Statement of Financial Position
For the month ended December 31, 2021

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

Dec-31 Sales 841,300

Sales Discount 2,000
Income Summary 839,300

31 Income Summary 419,700

Purchase Discount 10,000
Purchase Returns and Allowances 5,000
Purchases 300,000
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
Freight-in 2,500
Depreciation Expense - Furniture and Fixtures 1,200

31 Income Summary 350,000

Merchandise Inventory 350,000

Merchandise Inventory 80,000

Income Summary 80,000

31 Income Summary 149,600

Paul, Capital 149,600

31 Paul, Capital 50,000

Paul, Drawing 50,000
 MZM Grocery Store
Post-closing Trial Balance
As of December 31, 2021
Debit Credit
Cash 300,000
Accounts Receivable 220,000
Merchandise Inventory 80,000
Prepaid Insurance 18,000
Prepaid Rent 32,000
Delivery Equipment 180,000
Accumulated Depreciation - Delivery Equipment 36,000
Furniture and Fixtures 72,000
Accumulated Depreciation - Furniture and Fixtures 14,400
Accounts Payable 40,000
Notes Payable (due in 2022) 100,000
Salaries Payable 12,000
Paul, Capital 699,600
902,000 902,000
Cost of Goods Purchased:
Purchases 300,000
Freight-in 2,500
Purchase Returns and Allowances -5,000
Purchase Discount -10,000 287,500

Debits Credits
Paul, Capital Total: 452,100 699,600
(After closing entries) 50,000
197,500

Book value of Historical Value Accumulated Dep Total

Delivery Equipment 180,000 36,000 144,000
Furniture and Fixtures 72,000 14,400 57,600