PRACTICE

RJ Cellphone
WORKSHEET
FOR THE MONTH OF JULY

TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash 1,580,500 1,580,500.00
Accounts receivable 449,000 449,000.00
Prepaid rent 120,000 12,000.00 108,000.00
Office supplies 7,000 2,000.00 5,000.00
Store supplies 3,000 1,000.00 2,000.00
Furniture and Fixture 150,000 150,000.00
Computers 100,000 100,000.00
Accounts payable 80,000 80,000.00
Utilities payable 2,000 2,000.00
SSS premiums payable 10,000 10,000.00
Philhealth premiums payable 1,000 1,000.00
PAG-IBIG premiums payable 1,000 1,000.00
Withholding tax payable 5,000 5,000.00
RJ, Capital 2,250,000 2,250,000.00
RJ, Drawing 10,000 10,000.00
Sales 700,000 700,000.00
Sales returns and allowances 1,000 1,000.00
Sales Discount 4,500 4,500.00
Purchases 530,000 530,000.00
Purchase returns and allowances 20000 20,000.00
Purchase discounts 10,000 10,000.00
Freight in 3,000 3,000.00
Salaries expenses – selling 50,000 12,000.00 62,000.00
Delivery expense 3,000 3,000.00
Advertising 5,000 5,000.00
Salaries expenses- general 50,000 50,000.00
Utilities 2,000 2,000.00
SSS premium 6,000 6,000.00
 Philhealth premiums 500 500.00
PAG-IBIG premiums 500 500.00
Taxes and Licenses 4,000 4,000.00

Rent Expense 12,000.00 12,000.00

Office Supplies Expense 2,000.00 2,000.00
Store Supplies Expense 1,000.00 1,000.00
Salaries Payable 12,000.00 12,000.00
Depreciation Expense - F&F 2,500.00 2,500.00
Accumulated Depreciation - F&F 2,500.00 2,500.00
Depreciation Expense - Computers 2,083.33 2,083.33
Accumulated Depreciation - Computers 2,083.33 2,083.33
Rent Receivable 5,000 5,000.00
Rent Income 5,000.00 5,000.00
Bad Debts Expense 4,490.00 4,490.00
Allowance for bad debts 4,490.00 4,490.00
Inventory 10,000.00 10,000.00
Income Summary 10,000.00 10,000.00
Total 3,079,000 3,079,000 51,073.33 51,073.33 3,115,073.33 3,115,073.33
Net Profit from operation
INCOME STATEMENT Statement of Financial Position
DEBIT CREDIT DEBIT CREDIT
1,580,500.00
449,000.00
108,000.00
5,000.00
2,000.00
150,000.00
100,000.00
80,000.00
2,000.00
10,000.00
1,000.00
1,000.00
5,000.00
2,250,000.00
10,000.00
700,000.00
1,000.00
4,500.00
530,000.00
20,000.00
10,000.00
3,000.00
62,000.00
3,000.00
5,000.00
50,000.00
2,000.00
6,000.00
 500.00
500.00
4,000.00

12,000.00
2,000.00
1,000.00
12,000.00
2,500.00
2,500.00
2,083.33
2,083.33
5,000.00
5,000.00
4,490.00
4,490.00
10,000.00
10,000.00
695,573.33 745,000.00 2,419,500.00 2,370,073.33
49,426.67 49,426.67
745,000.00 745,000.00 2,419,500.00 2,419,500.00
 ADJUSTING JOURNAL ENTRIES

Date Particulars F Debit Credit

2020
July 31 Rent Expense 12,000.00
Prepaid Rent 12,000.00
(120000/10=12000)

Office Supplies Expense 2,000.00

Office Supplies 2,000.00
to record used supplies.

Store Supplies Expense 1,000.00

Store Supplies 1,000.00
to record used supplies.
(3000-2000=1000)

Salaries Expense - Selling 12,000.00

Salaries Payable 12,000.00

Depreciation Expense - F&F 2,500.00

Accumulated Depreciation - F&F 2,500.00
(150000/5 x 1/12 = 2500)

Depreciation Expense - Computers 2,083.33

Accumulated Depreciation - Computers 2,083.33
(100000 x .25 x 1/12 = 2083.33)

Rent Receivable 5,000.00

Rent Income 5,000.00

Bad Debts Expense 4,490.00

Allowance for bad debts 4,490.00

Inventory 10,000.00
Income Summary 10,000.00
to record Inventory on hand.
 RJ Cellphone
INCOME STATEMENT
JULY 31,2020

Net Sales (note 4) 694,500.00

Cost of Sales (note 5) (493,000.00)
Gross Profit 201,500.00
Other Income 5,000.00
Total Income 206,500.00
Less: Operating Expenses
Selling Expenses (note 7) 83,000.00
Administrative Expenses (note 8) 74,073.33
Total Operating Expenses (157,073.33)
Profit from Operation 49,426.67

RJ Cellphone
STATEMENT OF CHANGES IN OWNER'S EQUITY
JULY 31,2020

RJ, Capital, beg. 2,250,000.00

Profit from Operation 49,426.67
Drawing (10,000.00)
RJ, Capital, end 2,289,426.67
 RJ Cellphone
STATEMENT OF FINANCIAL POSITION
JULY 31,2020

ASSETS
Current Assets
Cash 1,580,500.00
Accounts Receivable, net (note 9) 449,510.00
Inventory 10,000.00
Prepaid Expenses (note 10) 115,000.00
Total Current Assets 2,155,010.00
Non-Current Assets
Fixed Assets (note 11) 245,416.67
TOTAL ASSETS 2,400,426.67

LIABILITIES & CAPITAL

Trade and other payables (note 12) 111,000.00
Total Liabilities 111,000.00

RJ, Capital end 2,289,426.67

TOTAL LIABILITIES & OWNER'S EQUITY 2,400,426.67

 NOTES TO FINANCIAL STATEMENTS

Note 4 - Net Sales Revenue

Gross Sales 700,000.00
Sales Returns and Allowances - 1,000.00
Sales Discounts - 4,500.00
Net Sales Revenue 694,500.00

Note 5 -Other Income

Rent Income 5,000.00

Note 6 - Cost of Sales

Inventory, Beg. -
Purchases 530,000.00
Purchase Returns and Allowance (20,000.00)
Purchase Discounts (10,000.00) - 30,000.00
Net Purchases 500,000.00
Freight In 3,000.00
Net Purchases 503,000.00
Inventory, End - 10,000.00
Cost of Goods sold 493,000.00

Note 7 - Selling Expense

Salaries expenses – selling 62,000.00
Delivery expense 3,000.00
Advertising 5,000.00
Store Supplies Expense 1,000.00
Rent Expense 12,000.00
83,000.00

Note 8 - Administrative Expense

Salaries expenses- general 50,000.00
Utilities 2,000.00
Depreciation Expense - F&F 2,500.00
Depreciation Expense - Computers 2,083.33
Taxes and licenses 4,000.00
Bad Debts Expense 4,490.00
Office Supplies Expense 2,000.00
SSS premium 6,000.00
 Philhealth premiums 500.00
PAG-IBIG premiums 500.00
74,073.33

Note 9 - Trade and other receivables

Accounts Receivable 449,000.00
Rent Receivable 5,000.00
Allowance for Bad debts - 4,490.00
449,510.00

Note 10 - Prepaid Expenses

Prepaid Rent 108,000.00
Store Supplies 5,000.00
Office Supplies 2,000.00
115,000.00
Note 11 - Fixed Assets
Furniture and Fixture 150,000.00
Accumulated Depreciation - F&F - 2,500.00 147,500.00
Computers 100,000.00
Accumulated Depreciation - Computers - 2,083.33 97,916.67
Net Fixed Assets 245,416.67

Note 12 - Trade and other payables

Accounts payable 80,000.00
Utilities payable 2,000.00
Salaries Payable 12,000.00
SSS premiums payable 10,000.00
Philhealth premiums payable 1,000.00
PAG-IBIG premiums payable 1,000.00
Withholding tax payable 5,000.00
111,000.00
 CLOSING ENTRIES

Date Particulars f Debit Credit

2020
July 31
Sales 700,000.00
Purchase returns and allowances 20,000.00
Purchase discounts 10,000.00
Rent Income 5,000.00
Income Summary 735,000.00

Income Summary 695,573.33

Sales returns and allowances 1,000.00
Sales Discount 4,500.00
Purchases 530,000.00
Freight in 3,000.00
Salaries expenses – selling 62,000.00
Delivery expense 3,000.00
Advertising 5,000.00
Salaries expenses- general 50,000.00
Utilities 2,000.00
SSS premium 6,000.00
Philhealth premiums 500.00
PAG-IBIG premiums 500.00
Taxes and Licenses 4,000.00
Rent Expense 12,000.00
Office Supplies Expense 2,000.00
Store Supplies Expense 1,000.00
Depreciation Expense - F&F 2,500.00
Depreciation Expense - Computers 2,083.33
Bad Debts Expense 4,490.00

Income Summary 49,426.67

RJ, Capital 49,426.67

RJ, Capital 10,000.00

RJ, Drawing 10,000.00

Income Summary
 Dr Cr
ce 2 10,000.00 10,000.00
49,426.67
10,000.00 59,426.67
49,426.67
59,426.67 59,426.67
aje 1
ce 1
 RJ Cellphone
POST-CLOSING TRIAL BALANCE
JULY 31,2020
Smile, Capital
Dr Cr Dr Cr
Cash 1,580,500.00 ce 1 10,000.00 2,250,000.00
Accounts receivable 449,000.00 49,426.67
Rent Receivable 5,000.00 10,000.00 2,299,426.67
Allowance for bad debts 4,490.00 2,289,426.67
Inventory 10,000.00
Prepaid rent 108,000.00
Office supplies 5,000.00
Store supplies 2,000.00
Furniture and Fixture 150,000.00
Accumulated Depreciation - F&F 2,500.00
Computers 100,000.00
Accumulated Depreciation - Computers 2,083.33
Accounts payable 80,000.00
Utilities payable 2,000.00
SSS premiums payable 10,000.00
Philhealth premiums payable 1,000.00
PAG-IBIG premiums payable 1,000.00
Withholding tax payable 5,000.00
Salaries Payable 12,000.00
RJ, Capital, end 2,289,426.67
2,409,500.00 2,409,500.00
beginning
ce 2

end
 REVERSING ENTRIES

Date Particulars f Dr Cr
2020
July 31 Salaries Payable 12,000.00
Salaries Expense 12,000.00