FINANCIAL STATEMENT

PERIODIC INVENTORY SYSTEM

LEGNA GENERAL MERCHANDISE

UNADJUSTED TRIAL BALANCE
AUGUST 31, 2017

Account Titles F Debit Credit

10
Cash 1 74,990
10
Merchandise Inventory 3 60,000
10
Supplies 4 2,000
10
Equipment 5 20,000
10
Accounts Payable 6 10,400
10
Notes Payable 7 20,000
10 100,00
L. Nauigalac, Capital 8 0
10
L. Nauigalac, Drawing 9 20,000
11
Income Summary 0 60,000
11
Sales 1 84,000
Sales Returns and 11
Allowances 2 15,000
11
Sales Discounts 3 330
11
Purchases 4 70,400
Purchase Returns and 11
Allowances 5 8,000
11
Purchase Discounts 6 320
11
Freight-In 7 400
11
Salaries 8 6,000
11
Rent Expense 9 7,000
12
Taxes and Licenses 0 2,400
12
Advertisement 1 1,600
12
Utilities 2 2,000
FINANCIAL STATEMENT
PERIODIC INVENTORY SYSTEM

12
Freight-Out 3 600
282,72 282,7
TOTAL 0 20

LEGNA GENERAL MERCHANDISE

INCOME STATEMENT
For the month ended August 31, 2017

NET SALES:
Sales 84,000
Sales Returns and
Allowances (15,000)
Sales Discount (330) 68,670
COST OF
SALES:
Purchases 70,400
Freight-In 400
Purchase Returns and
Allowances (8,000)
Purchase Discount (320)
Net Purchases 62,480
Merchandise Inventory, end (60,000) (2,480)
GROSS
PROFIT 66,190
EXPENSES:
Salaries 6,000
Rent Expense 7,000
Taxes and Licenses 2,400
Advertisement 1,600
Utilities 2,000
Freight-Out 600 (19,600)
NET PROFIT 46,590
FINANCIAL STATEMENT
PERIODIC INVENTORY SYSTEM

LEGNA GENERAL MERCHANDISE

STATEMENT OF CHANGES IN EQUITY
For the month ended August 31, 2017

L. Nauigalac, Capital 100,0

- beg. 00
46,59
Add: Profit 0
146,5
Total 90
(20,0
Less: Withdrawal 00)
L. Nauigalac, Capital 126,5
- end 90

LEGNA GENERAL MERCHANDISE

BALANCE SHEET
As of August 31, 2017

ASSETS
Current Assets:
Cash 74,990
Merchandise
Inventory 60,000
136,99
Supplies 2,000 0
Noncurrent Assets:
Equipment 20,000
156,99
TOTAL ASSETS 0

LIABILITIES & EQUITY

Current Liabilities:
Accounts Payable 10,400
Notes Payable 20,000 30,400
Total Liabilities

126,59
L. Nauigalac, Capital 0
TOTAL LIABILITIES & 156,99
EQUITY 0
FINANCIAL STATEMENT
PERIODIC INVENTORY SYSTEM

LEGNA GENERAL MERCHANDISE

STATEMENT OF CHANGES IN CASH FLOWS
For the month of August 31, 2017

Operating Activities:
Purchase of merchandise (40,000)
Purchase of supplies (2,000)
Purchase returns 4,000
Payment of freight (1,000)
Payment of account (15,680)
Cash sales 60,000
Sales returns (2,000)
Collection of account 10,670
Payment of expenses (19,000) (5,010)
Investing Activities:
Purchase of equipment (20,000)
Financing Activities:
Initial investment 100,000
Borrowed funds 20,000
Withdrawals (20,000) 100,000
Net increase of cash 74,990
Add: Cash - beginning 0
Cash - ending 74,990
FINANCIAL STATEMENT
PERIODIC INVENTORY SYSTEM

LEGNA GENERAL MERCHANDISE

POST-CLOSING TRIAL BALANCE
AUGUST 31, 2017

Account Titles F Debit Credit

Cash 101 74,990
Merchandise Inventory 103 60,000
Supplies 104 2,000
Equipment 105 20,000
Accounts Payable 106 10,400
Notes Payable 107 20,000
L. Nauigalac, Capital 108 126,590
TOTAL 156,990 156,990