Christine Sousa Bags

Worksheet
For the Year Ended December 31,2021

Trial Balance Adjustments

Account Title Debit Credit
Cash 72,000.00
Accounts Receivable 136,000.00
Merchandise Inventory 598,000.00
Prepaid Advertising 75,000.00 b
Office Supplies 42,000.00 a
Land 400,000.00
Office Equipment 570,000.00
Accumulated Depreciation-Off. Equipt 150,000.00 d
Office Building 1,600,000.00
Accumulated Depreciation-Office Bldg. 100,000.00 d
Notes Payable due in 2 yrs. 200,000.00
Accounts Payable 74,000.00
Mortgage Payable 1,100,000.00
Sousa, Capital 1,510,000.00
Sousa, Withdrawals 200,000.00
Sales 4,600,000.00
Sales Returns and Allowances 187,000.00
Sales Discounts 161,000.00
Purchases 2,643,000.00
Purchases Returns and Allowances 133,000.00
Purchases Discounts 172,000.00
Transportation In 72,000.00
Salaries Expense 862,000.00 c 21,000.00
Travel Expense 188,000.00
Insurance Expense 25,000.00
Interest Expense 208,000.00
Totals 8,039,000.00 8,039,000.00
Office Supplies Expense a 17,000.00
Advertising Expense b 25,000.00 ###
Salaries Payable c
Depreciation Expense-Office Building d 15,000.00
Depreciation Expense-Office Equiptment d 20,000.00
98,000.00
Profit
istine Sousa Bags
Worksheet
Ended December 31,2021

Adjustments Income Statement Statement of Financial Position

Debit Credit Debit Credit
72,000.00
136,000.00
598,000.00 723,000.00 723,000.00
25,000.00 50,000.00
17,000.00 25,000.00
400,000.00
570,000.00
20,000.00 170,000.00
1,600,000.00
15,000.00 115,000.00
200,000.00
74,000.00
1,100,000.00
1,510,000.00
200,000.00
4,600,000.00
187,000.00
161,000.00
2,643,000.00
133,000.00
172,000.00
72,000.00
883,000.00
188,000.00
25,000.00
208,000.00

17,000.00
25,000.00
21,000.00 21,000.00
15,000.00
20,000.00
98,000.00 5,042,000.00 5,628,000.00 3,776,000.00 3,190,000.00
586,000.00 586,000.00
5,628,000.00 5,628,000.00 3,776,000.00 3,776,000.00
 ADJUSTING ENTRY

Date Particulars F Debit

2021
December 31 Office Supplies Expense 17,000.00
Office Supplies

31 Advertising Expense 25,000.00

Prepaid Advertising

31 Salaries Expense 21,000.00

Salaries Payable

31 Depreciation Expense-Office Bldg. 15,000.00

Accumulated Depreciation-Office Bldg.

31 Depreciation Expense-Office Equipt. 20,000.00

Accumulated Depreciation-Office Equipt.

31 Income Summary 598,000.00

Merchandise Inventory, Beginning

Merchandise Inventory, End 723,000.00

Income Summary
 Credit

17,000.00

25,000.00

21,000.00

15,000.00

20,000.00

598,000.00

723,000.00
 CLOSING ENTRY METHOD FOR MERCHANDISE INVENTORY

December 31 Sales
Purchases Discounts
Purchases Returns and Allowances
Income Summary

31 Income summary
Sales Discounts
Sales Returns and Allowances
Purchases
Transportation In
Salaries Expense
Travel Expense
Insurance Expense
Interest Expense
Office Supplies Expense
Advertising Expense
Deprecitaion Expense-Office Bldg.
Depreciation Expense-Office Equipt.

31 Income Summary
Sousa, Capital

31 Sousa, Capital
Sousa, Withdrawals
TORY

4,600,000.00
172,000.00
133,000.00
4,905,000.00

4,444,000.00
161,000.00
187,000.00
2,643,000.00
72,000.00
883,000.00
188,000.00
25,000.00
208,000.00
17,000.00
25,000.00
15,000.00
20,000.00

586,000.00
586,000.00

200,000.00
200,000.00
Note 1 Cash and Cash Equivalents
Cash

Note 2 Trade and Other Receivables

Accounts Receivables

Note 3 Inventories
Merchandise Inventory

Note 4 Prepaid Expenses

Prepaid Advertising
Office Supplies

Note 5 Property, Plant and Equipment

Land
Office Equipment 570,000.00
Accumulated Depreciation-Off. Equipt 170,000.00
Office Building 1,600,000.00
Accumulated Depreciation-Office Bldg. 115,000.00

Note 6 Trade and Other Payables

Accounts Payable
Salaries Payable

Notes 7 Non-Current Liabilities

Notes Payable, due in 2 yrs.
Mortgage Payable

Note 8 Net Sales

Sales
Less: Sales Returns and Allowances 187,000.00
Sales Discounts 161,000.00
Net Sales

Note 9 Cost of Good Sold

Merchandise Inventory, 1/1/2021
Add: Net Costs of Purchases
Purchases 2,643,000.00
Add: Transportation In 72,000.00
Total 2,715,000.00
 Less: Purchases Returns and Allowances 133,000.00
Purchases Discounts 172,000.00 305,000.00
Total Goods Available for Sale
Less: Merchandise Inventory, 12/31/2021
Cost of Good Sold

Note 10 Selling Expenses

Travel Expense
Advertising Expense

Note 11 Administrative Expenses

Salaries Expense
Insurance Expense
Depreciation Expense-Office Equiptment
Office Supplies Expense
Depreciation Expense-Office Building

Note 12 Finance Cost

Interest Expense
 Christine Sousa Bags
72,000.00 Income Statement
For the Year Ended December 31, 2021

136,000.00 Net Sales (Note 8)

Cost of Sales (Note 9)
Gross Profit
723,000.00 Operating Expenses

50,000.00
25,000.00 Operating Profit
75,000.00 Finance Cost (Note 12)
Profit

400,000.00

400,000.00

1,485,000.00
2,285,000.00

74,000.00
21,000.00
95,000.00

200,000.00
1,100,000.00
1,300,000.00

4,600,000.00

348,000.00
4,252,000.00

598,000.00
2,410,000.00
3,008,000.00
723,000.00
2,285,000.00

188,000.00
25,000.00
213,000.00

883,000.00
25,000.00
20,000.00
17,000.00
15,000.00
960,000.00

208,000.00
 Christine Sousa Bags
Income Statement St
or the Year Ended December 31, 2021 For th

les (Note 8) 4,252,000.00

f Sales (Note 9) 2,285,000.00
1,967,000.00
ting Expenses
Selling Expense (Note 10) 213,000.00
Administrative Expense (Note 11) 960,000.00
Total Operating Expense 1,173,000.00
794,000.00
e Cost (Note 12) 208,000.00
586,000.00
 Christine Sousa Bags
Statement of Changes in Equity
For the Year Ended December 31, 2021

Sousa, Capital, January 1, 2021 1,510,000.00

Add: Profit 586,000.00 Current Assets
Total 2,096,000.00
Less: Sousa, Withdrawals 200,000.00
Sousa, Capital, December 31, 2021 1,896,000.00

Non-Current Assets

Total Assets

Current Liabilities

Non-Current Liabilities

Total Liabilities

Sousa, Capital, Decemb

Total Liabilities and Ow
 Christine Sousa Bags
Statement of Financial Position
As of December 31, 2021

ASSETS
Current Assets
Cash and Cash Equivalents (Note 1) 72,000.00
Trade and Other Receivables (Note 2) 136,000.00
Inventories (Note 3) 723,000.00
Prepaid Expenses (Note 4) 75,000.00
Total Current Assets 1,006,000.00

Non-Current Assets
Property, Plant and Equipment (Note 5) 2,285,000.00
Total Assets 3,291,000.00

LIABILITIES
Current Liabilities
Trade and Other Payables (Note 6) 95,000.00

Non-Current Liabilities (Note 7)

Notes Payable, due in 2 yrs. 200,000.00
Mortgage Payable 1,100,000.00
Total Liabilities 1,395,000.00

OWNER`S EQUITY
Sousa, Capital, December 31, 2021 1,896,000.00
Total Liabilities and Owner`s Equity 3,291,000.00
 Victoriano Navarette Traders Note 1 Net Sales
Income Statement Sales
For the Year Ended December 31, 2021 Less: Sales Return
Sales Discou
Net Sales (Note 1) 9,140,000.00 Net Sales
Cost of Sales (Note 2) 5,330,000.00
Gross Profit 3,810,000.00 Note 2 Cost of Good Sold
Operating Expenses Merchandise Inve
Selling Expense (Note 3) 1,550,000.00 Add: Net Costs of
Administrative Expense (Note 4) 1,785,000.00
Total Operating Expense 3,335,000.00
Profit 475,000.00

Total Goods Availa

Less: Merchandise
Cost of Good Sold

Note 3 Selling Expenses

Note 4 Administrative Exp

Net Sales
Sales 9,630,000.00
Less: Sales Returns and Allowances 280,000.00
Sales Discounts 210,000.00 490,000.00
Net Sales 9,140,000.00

Cost of Good Sold

Merchandise Inventory, 1/1/2021 2,170,000.00
Add: Net Costs of Purchases
Purchases 4,720,000.00
Add: Transportation In 50,000.00
Total 4,770,000.00
Less: Purchases Returns and Allowances 110,000.00
Purchases Discounts 70,000.00 180,000.00 4,590,000.00
Total Goods Available for Sale 6,760,000.00
Less: Merchandise Inventory, 12/31/2021 1,430,000.00
Cost of Good Sold 5,330,000.00

Selling Expenses
Salaries Expense-Selling 1,140,000.00
Transportation Out 170,000.00
Depreciation Expense-Store Equipment 160,000.00
Selling Supplies Expense 80,000.00
1,550,000.00
Administrative Expenses
Salaries Expense-General 920,000.00
Office Supplies Expense 460,000.00
Insurance Expense 55,000.00
Depreciation Expense-Office Equipment 320,000.00
Miscellaneous Expense 30,000.00
1,785,000.00
 Marissa Babilonia Health Store Note 1 Net Sales
Income Statement Sales
For the Year Ended December 31, 2021 Less: Sales Return
Sales Disco
Net Sales (Note 1) 9,410,000.00 Net Sales
Cost of Sales (Note 2) 6,500,000.00
Gross Profit 2,910,000.00 Note 2 Cost of Good Sold
Operating Expenses Merchandise Inve
Selling Expense (Note 3) 1,580,000.00 Add: Net Costs of
Administrative Expense (Note 4) 1,760,000.00
Total Operating Expense 3,340,000.00
Net Loss 430,000.00

Total Goods Avail

Less: Merchandis
Cost of Good Sold

Note 3 Selling Expenses

Note 4 Administrative Ex
Net Sales
Sales 9,810,000.00
Less: Sales Returns and Allowances 260,000.00
Sales Discounts 140,000.00
Net Sales 400,000.00

Cost of Good Sold

Merchandise Inventory, 1/1/2021 1,160,000.00
Add: Net Costs of Purchases
Purchases 6,710,000.00
Add: Transportation In 100,000.00
Total 6,810,000.00
Less: Purchases Returns and Allowances 250,000.00
Purchases Discounts 180,000.00 430,000.00 6,380,000.00
Total Goods Available for Sale 7,540,000.00
Less: Merchandise Inventory, 12/31/2021 1,040,000.00
Cost of Good Sold 6,500,000.00

Selling Expenses
Salaries Expense-Selling 960,000.00
Transportation Out 260,000.00
Advertising Expense 150,000.00
Depreciation Expense-Store Equipment 140,000.00
Selling Supplies Expense 70,000.00
1,580,000.00
Administrative Expenses
Salaries Expense-General 1,130,000.00
Office Supplies Expense 430,000.00
Depreciation Expense-Office Equipment 110,000.00
Miscellaneous Expense 90,000.00
1,760,000.00
 Ramon Woo Milk Products Note 1 Net Sales
Income Statement Sales
For the Month Ended June 30, 2021 Less: Sales Returns and
Sales Discounts
Net Sales (Note 1) 702,570.00 Net Sales
Cost of Sales (Note 2) 362,440.00
Gross Profit 340,130.00 Note 2 Cost of Good Sold
Operating Expenses Merchandise Inventory
Selling Expense (Note 3) 132,900.00 Add: Net Costs of Purc
Administrative Expense (Note 116,700.00
Total Operating Expense 249,600.00
Operating Profit 90,530.00
Finance Cost (Note 5) 5,400.00 Total Goods Available f
Profit 85,130.00 Less: Merchandise Inve
Cost of Good Sold

Note 3 Selling Expenses

Note 4 General Expenses

Note 5 Finance Cost

Net Sales
Sales 731,000.00
Less: Sales Returns and Allowances 18,030.00
Sales Discounts 10,400.00 28,430.00
Net Sales 702,570.00

Cost of Good Sold

Merchandise Inventory, 1/1/2021 69,350.00
Add: Net Costs of Purchases
Purchases 364,000.00
Less: Purchases Returns and Allowances 3,400.00
Purchases Discounts 1,990.00 5,390.00 358,610.00
Total Goods Available for Sale 427,960.00
Less: Merchandise Inventory, 06/30/2021 65,520.00
Cost of Good Sold 362,440.00

Selling Expenses 132,900.00

General Expenses 116,700.00

Finance Cost
Interest Expense 5,400.00