Date Adjusting Entries Debit Credit

Dec.31 Mercahndise Inventory, end P1,650,620

Purchase Returns & Allowances 26,250
Purchase Discounts 40,560
Cost of Good Sold 2,546,720
Mercahndise Inventory, beg 1,578,650
Purchase 2,625,250
Transportation In 60,250

Dec.31 Interest Receivable 1,800

Interest Income 1,800

Dec.31 Insurance expense 6,000

Prepaid Insurance 6,000

Dec.31 Office supplies Expense 1,400

Office supplies 1,400

Dec.31 Depreciation Expense 50,000

Accumulated Dept.-Delivery Equipment 50,000

Depreciation Expense 15,000

Accumulated Dept.-Store Equipment 15,000

Depreciation Expense 10,000

Accumulated Dept.-Office Equipment 10,000

Dec.31 Sale Salary Expense 10,000

Sales Salary Payable 10,000

Office Salary Expense 5,000

Office Salary Payable 5,000

Advertising Expense 3,000

Advertising Payable 3,000

Rent Expense 10,000

Rent Payable 10,000

Dec.31 Bad Debt Expense 37,606

Allowance for Bad Debts 37,606
Dec.31 Vat Output Tax 30,800
Vat Input Tax 22,400
Vat Payable 8,400
Cogs = Purchases-purchase return-purcahse discount+transpotation in+inv.beg-inv,end

60kx12%x3/12

12k/4x2

6250-4850

500k/10

150k/10

50k/5

3760600x1%
30800-22400
 Account Titles TRIAL BALANCE ADJUSTMENTS
As of Dec.31
Debit Credit Debit Credit
Cash 255,430
Notes Receivables 60,000
accounts Receivable 275,600
Allowance for BadDebts 37,606
Interest Receivables 1,800
Mercahndise Inventory,beg 1,578,650 1,578,650
Mercahndise Inventory,end 1,650,620
Prepaid Insurance 12,000 5,800
office supplies 6,250 1,400
Vat Input Tax 22,400 22,400
Delivery Equipment 500,000
Accumulated Dept-Delivery Equipment 50,000 50,000
Store Equipment 150,000
Accumulated Dept- Store Equipment 15,000 15,000
Office Equipment 50,000
Accumulated Dept- Office Equipment 10,000 10,000
Accounts Payable 945,650
Notes Payable 100,000
Sale Salary Payable 10,000
Office Salary Payable 5,000
Advertising Payable 3,000
Rent Payable 10,000
Vat Payable 8,400
Vat Output Tax 30,800 30,800
Modern,capital 1,505,945
Modern,drawings 60,000
Sales 3,760,600
Sales Return & Allowance 37,500
Sales Discount 50,650
Interest Income 1,200 1,800
Purchases 2,625,250 2,625,250
purchase Return &Allowance 26,250 26,250
Purchase Discount 40,560 40,560
Transportation In 60,250 60,250
Cost of Good Sold 2,546,720
Sale Salary Expense 215,675 10,000
Advertising Expense 33,000 3,000
Commission Expense 75,250
Delivery Expense 112,500
Misc. Selling Expense 12,450
Office Salary Expense 125,900 5,000
Rent Expense 110,000 10,000
Insurance Expense 12,000 5,800
Office Supplies Expense 16,800 1,400
interest Expense 12,000
Tax Expense 10,250
Misc. General Expense 6,200
Depreciation Expense 75,000
Bad Debts Expense 37,606

Total 6,486,005 6,486,005 4,444,556 4,444,556

Net Income
ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET Closing Entries
As of Dec.31 As of Dec.31 As of Dec.31
Debit Credit Debit Credit Debit Credit Debit
255,430 255,430
60,000 60,000
275,600 275,600
37,606 37,606
1,800 1,800
-
1,650,620 1,650,620
6,200 6,200
4,850 4,850
-
500,000 500,000
100,000 100,000
150,000 150,000
30,000 30,000
50,000 50,000
20,000 20,000
945,650 945,650
100,000 100,000
10,000 10,000
5,000 5,000
3,000 3,000
10,000 10,000
8,400 8,400
-
1,505,945 1,505,945
60,000 60,000
3,760,600 3,760,600 3,760,600
37,500 37,500
50,650 50,650
3,000 3,000 3,000
-
-
-
-
2,546,720 2,546,720
225,675 225,675
36,000 36,000
75,250 75,250
112,500 112,500
12,450 12,450
130,900 130,900
 120,000 120,000
17,800 17,800
18,200 18,200
12,000 12,000
10,250 10,250
6,200 6,200
75,000 75,000
37,606 37,606

6,539,201 6,539,201 3,524,701 3,763,600 3,014,500 2,775,601 3,763,600

238,899 238,899

3,763,600 3,763,600 3,014,500 3,014,500

Closing Entries Post Closing Trial Balance
As of Dec.31 As of Dec.31
Credit Debit Credit
255,430
60,000
275,600
37,606
1,800

1,650,620
6,200
4,850

500,000
100,000
150,000
30,000
50,000
20,000
945,650
100,000
10,000
5,000
3,000
10,000
8,400

2,813,769 1,307,824
60,000

225,675
36,000
75,250
112,500
12,450
130,900
 120,000
17,800
18,200
12,000
10,250
6,200
75,000
37,606

3,763,600 2,954,500 2,577,480

 Modern Appliances Store
Statement of Comprehensive Income
For the year ended December 31, 20xx

Sales
Less: Sales Return & Allowances 37,500
Sales Discount 50,650
Net Sales
Less: Cost of Good Sold 2,546,720
Gross Profit

Add: Interest Income 3,000

Less: Operating Expenses

Sale Salary Expense 225,675

Advertising Expense 36,000
Commission Expense 75,250
Delivery Expense 112,500
Misc. Selling Expense 12,450
Office Salary Expense 130,900
Rent Expense 120,000
Insurance Expense 17,800
Office Supplies Expense 18,200
interest Expense 12,000
Tax Expense 10,250
Misc. General Expense 6,200
Depreciation Expense 75,000
Bad Debts Expense 37,606
Total Operating Expense

Net Income
n Appliances Store
Comprehensive Income
nded December 31, 20xx

3,760,600

88,150
3,672,450

1,125,730

1,128,730

889,831

889,831

238,899
 Modern Appliances Store
Statement of Changes in Equity
For the year ended December 31, 20xx

Modern Capital, beg

Increases
Net Income 238,899
Total Increases

Decreases
Drawing by owner 60,000
Total Decreases

Modern Capital, end

pliances Store
hanges in Equity
d December 31, 20xx

1,405,945

1,644,844

60,000

1,584,844
 Modern Appliances Store
Statement of Finacial Condition
December 31, 20xx

Assets
Cash
Notes Receivables
accounts Receivable
Allowance for BadDebts
Interest Receivables
Mercahndise Inventory,end
Prepaid Insurance
office supplies
Delivery Equipment
Accumulated Dept-Delivery Equipment
Store Equipment
Accumulated Dept- Store Equipment
Office Equipment
Accumulated Dept- Office Equipment
Total Assets

Liabilities
Accounts Payable
Notes Payable
Sale Salary Payable
Office Salary Payable
Advertising Payable
Rent Payable
Vat Payable
Total Liabilities

Owners Equity
Modern,capital
Modern,drawings
Total Owners Equity
Total Liabilities & Owners Equity
Modern Appliances Store
tement of Finacial Condition
December 31, 20xx

255,430
60,000
275,600
- 37,606
1,800
1,650,620
6,200
4,850
500,000
-100000
150,000
- 30,000
50,000
- 20,000
2,766,894

945,650
100,000
10,000
5,000
3,000
10,000
8,400
1,082,050

1,584,844
60,000
1,524,844
2,606,894
Closing Entries Debit Credit
sales 3,760,600
Interest Income 3000
Income Summarry 3,763,600

Income Summary 889,831

Sale Salary Expense 225,675
Advertising Expense 36,000
Commission Expense 75,250
Delivery Expense 112,500
Misc. Selling Expense 12,450
Office Salary Expense 130,900
Rent Expense 120,000
Insurance Expense 17,800
Office Supplies Expense 18,200
interest Expense 12,000
Tax Expense 10,250
Misc. General Expense 6,200
Depreciation Expense 75,000
Bad Debts Expense 37,606

Income Summary 2,873,769

Modern Capital 2,873,769

capital 60,000
drawings 60000
2,813,769