VILLAR TRADING

ADJUSTED TRIAL BALANCE

AS OF DECEMBER31,2017
DEBIT CREDIT DEBIT CREDIT
Cash On Hnad 25
Cash in Bank 175
Accounts Receivable 110
Allowance for Bad Debts 8 3,000
Notes Receivable 80
Merchandise Inventory January 1 198
Prepaid Rent 30 10,000
Supplies Inventory 4
Furniture & Fixtures 60
Accumulated Depreciation 10 10,000
Accounts Payable 16
Loan Payable 80
Villar, Capital 100
Villar, Drawings 16
Purchases 850
Freight In 15
Input Tax 104 104,000
Purchase Returns & Allownaces 19
Purchase Discounts 8
Sales 1,500
Output Tax 192 192,000
Sales Returns & Allownaces 25
Sales Discount 16
Freight Out 19
Salaries & Wages 72 6,000
Utilities Expense 75
Commision Income 64 1,000

Bad Debts Expense 3,000

Depreciation Expence - SFF 10,000
Interest Receivable 6,000
Interest Income 6,000
Interest Expense 6,000
Interest Paybale 6,000
Store Rent Expense 10,000
Salaries & Wages Payable 6,000
Unearned Commision Income 1,000
VAT Payable 88,000
Mechandise Inventory - Dec. 31 85,000
Income Summary 85,000
TOTAL 319,000 319000
 VILLAR TRADING
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31,2017

NET SALES 1,459,000

LESS: COST OF GOODS SOLD 951,000
GROSS INCOME 508,000
ADD: OTHER INCOME 10,000
TOTAL OPERATING INCOME 518,000
LESS:
FREIGHT OUT 19,000
SALARIES & WAGES 52,000
UTILITIES EXPENSE 48,000
DEPRECIATION EXPENSE - SFF 10,000
STORE RENT EXPENSE 10,000
SALARIES & WAGES 26,000
TAX EXPENSES 75,000
UTILITIES EXPENSE 16,000
BAD DEBTS EXPENSE 3,000 259,000
NET OPERATING INCOME 259,000
LESS: INTEREST EXPENSE 6,000
NET INCOME 253,000
 VILLAR TRADING
STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE YEAR ENDED DECEMBER 31,2017

VILLAR, CAPITAL, BEG. 100,000

ADD: NET INCOME 253,000
TOTAL 353,000
LESS: VILLAR, DRAWINGS 16,000
VILLAR, CAPITAL, END. 337,000
 Villar Trading
Statement of Financial Position
As of December 31,2017

ASSETS
CURRENT ASSETS
CASH ON HAND 25,000
CASH ON BANK 175,000
ACCOUNTS RECEIVABLE 110,000
ALLOWANCE FOR BAD DEBTS -11,000
NOTES RECEIVABLE 80,000
INTEREST RECEIVABLE 6,000
MERCHANDISE INVENTORY 85,000
PREPAID RENT 20,000
SUPPLIES INVENTORY 4,000
TOTAL CURRENT ASSETS 494,000

NON CURRENT ASSETS

FURNITURE & FIXTURES 60,000
ACCUMULATED DEPRECIATION -20,000
TOTAL NON CURRENT ASSETS 40,000
TOTAL ASSETS 534,000

LIABILITIES
CURRENT LIABILITIES
ACCOUNTS PAYABLE 16,000
INTEREST PAYABLE 6,000
SALARIES & WAGES PAYABLE 6,000
UNEARNED COMMISION INCOME 1,000
VAT PAYABLE 88,000
TOTAL CURRENT LIABILITIES 117,000

NON-CURRENT LIABILITIES
LOAN PAYABLE 80,000
TOTAL NON-CURRENT LIABILITIES 80,000

OWNER'S EQUITY
VILLAR, CAPITAL 337,000
TOTAL LIABILITIES & OWNER'S EQUITY 534,000
 Villar Trading
CLOSING ENTRIES
As of December 31,2017

DATE ACCOUNT TITLE DEBIT CREDIT

31-Dec
1 SALES 1,500,000
PURCHASE RETURNS & ALLOWNACES 19,000
PURCHASE DISCOUNTS 8,000
COMMISION INCOME 4,000
INTEREST INCOME 6,000
INCOME SUMMARY 1,537,000

2 INCOME SUMMARY 1,369,000

MERCHANDISE INVENTORY, JANUARY 1 198,000
PURCHASES 850,000
FREIGHT-IN 15,000
SALES RETURN & ALLOWANCES 25,000
SALES DISCOUNT 16,000
FREIGHT-OUT 19,000
SALARIES & WAGES 78,000
TAX EXPENSE 75,000
UTILITIES EXPENSE 64,000
BAD DEBTS EXPENSE 3,000
DEPRECIATION EXPENSE - SFF 10,000
INTEREST EXPENSE 6,000
RENT EXPENSE 10,000

3 INCOME SUMMARY 253,000

VILLAR,CAPITAL 253,000

4 VILLAR, CAPITAL 16,000

VILLAR, DRAWINGS 16,000