Bright Co. is a merchandising business. The account balances for Bright Co.

as of December 1, 2019 are as follows:

110 Cash $75,500
112 Accounts Receivable 185,000
115 Merchandise Inventory 495,500
116 Prepaid Insurance 14,000
117 Store Supplies 9,500
123 Store Equipment 455,500
124 Accumulated Depreciation—Store Equipment 46,000
210 Accounts Payable 78,000
211 Expenses Payable —
310 Rahman, Capital 491,500
311 Rahman, Drawing 110,000
410 Sales 4,275,000
411 Sales Returns and Allowances 72,500
412 Sales Discounts 46,500
510 Cost of Merchandise Sold 2,245,500
520 Sales Salaries Expense 545,000
521 Advertising Expense 242,500
522 Depreciation Expense —
523 Store Supplies Expense —
529 Miscellaneous Selling Expense 10,500
530 Office Salaries Expense 307,000
531 Rent Expense 69,500
532 Insurance Expense —
539 Miscellaneous Administrative Expense 6,500
$4,890,500 $4,890,500
The following were selected from among the transactions completed by Bright Co. during December 2019:
2 Purchased merchandise on account from Miracle Co., terms 2/10, n/30, FOB shipping point, $75,500, with
prepaid freight of $1,500 added to the invoice.
4 Sold merchandise on account to Norman Co., terms 2/10, n/30, FOB shipping point, $93,000. The cost of the
merchandise sold was $82,500, with prepaid freight of $1,500 added to the invoice.

5 Returned $5,500 of damaged merchandise purchased on Dec 2.

10 Paid for merchandise purchased on Dec 2.
11 Received merchandise returned on sale of Dec 4, $9,000. The cost of the merchandise returned was $6,500.
13 Sold merchandise for cash, $75,000. The cost of the merchandise sold was $50,000.
14 Received cash from sale of Dec 4.
17 Refunded cash on sales made for cash, $7,000. The cost of the merchandise returned was $5,500.

At the end of December, the following adjustment data were assembled:

a. Merchandise inventory on December 31, $435,000.
b. Insurance expired during the year, $6,000.
c. Store supplies on hand on December 31, $5,500
d. Depreciation for the current year $25,500
e. Accrued expenses on December 31:
Sales salaries Expense $6,500
Office salaries Expense $8,000
Rent Expense $4,500
Instructions:
1. Journalize the transactions for December 2019.
2. Post the journal to the general ledger (T Account).
3. Prepare an Unadjusted Trial Balance in the spreadsheet.
4. Journalize the adjusting entries.
5. Complete the spreadsheet.
6. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
7. Prepare the closing entries and the post-closing trial balance.
re as follows:

PT KREASI
GENERAL JOURNAL
Dec-19
Date Description Ref Debit Credit
2019
Dec 2 persediaan v 75,500
hutang v 75,500
persediaan v 1,500
e cost of the hutang V 1,500

4 piutang v 93,000
penjjualan V 93,000
was $6,500. HPP V 82,500
persediaan v 82,500
piutang v 1,500
kas v 1,500

5 utang V 5,500
persediaan v 5,500

10 utang v 71,500
retur dan potongan pembelian v 1,400
kas v 70,100

11 penjualan V 9,000
piutang v 9,000
 persediaan v 6,500
HPP 6,500

13 kas v 75,000
penjualan V 75,000
HPP V 50,000
persediaan v 50,000

14 kas V 83,820
retur dan potongan pembelian V 1,680
piutang v 85,500

17 penjualan V 7,000
kas V 7,000
persediaan v 5,500
HPP V 5,500
569,500 569,500
 Merchandise Inventory account payable
D K D K
495,500 82,500 5,500 78,000
75,500 5,500 71,500 1,500
1,500 1,400 75,500
6,500
5,500 50,000
584,500 139,400 77,000 155,000
445,100 78,000
Account Recievable cost of merchandise sold
D K D K
185,000 9,000 2,245,500 6500
93,000 85,500 82,500 5,500
1,500 50,000

279,500 94,500 2,378,000 12000

185,000 2,366,000
D CASH K D SALES RETURN K
75,500 1,500 72,500
75,000 70,100 9,000
83,820 7,000 7,000
 234,320 78,600 88,500
155,720
D SALES K D PREPAID INSURACE K
4,275,000 14,000
93,000
75,000

4,443,000 14,000

D SALES DISCOUNT K D STORE SUPPLIES K

1,680 9,500
46,500

48,180

D DEPRECIATION EXP K D ADVERTISING EXP K

242,500

D STORE SUPLIES EXP K D MISCELLANEUOS EXP K

10,500

D D INSURANCE EXPENSE K
 PT KREASI
ADJUSTING ENTRIES
Tuesday, December 31, 2019
D STORE EQUIPMENT K Date Description
455,500 2019
Dec 31 Cost of Merchandise Sold

Insurance Expense

D ACCUMULATED DEPR K
Store Supplies Expense
46,000

Depreciation Expense

Sales Salaries Expense

D EXPENSE PAYABLE K Office Salaries Expense
Rent Expense
D CAPITAL K
(491,500)

D DRAWING K
110,000

D SALE SALERIES EXP K

545,000

D OFFICE SALERIES EXP K

307,000

D RENT EXPENSE K
69,500
 PT KREASI
ADJUSTING ENTRIES
Tuesday, December 31, 2019
Description Ref Debit Credit

Cost of Merchandise Sold 10,100

Merchandise Inventory 10,100

Insurance Expense 6,000

Prepaid Insurance 6,000

Store Supplies Expense 4,000

Store Supplies 4,000

Depreciation Expense 25,500

Accumulated Depreciation—Store Equipment 25,500

Sales Salaries Expense 6,500

Office Salaries Expense 8,000
Rent Expense 4,500
Expenses Payable 19,000

64,600 64,600
 UNADJUSTED TRIAL BALANCE ADJUSTING
DESCRIPTION
DEBIT CREDIT DEBIT
Cash 155,720.000
Accounts Receivable 185,000.000
Merchandise Inventory 445,100.000
Prepaid Insurance 14,000.000
Store Supplies 9,500.000
Store Equipment 455,500.000
Accumulated Depreciation—Store Equipment 46,000.000
Accounts Payable 78,000.000
Expenses Payable -
Rahman, Capital 491,500.000
Rahman, Drawing 110,000.000
Sales 4,443,000.000
Sales Returns and Allowances 88,500.000
Sales Discounts 48,180.000
Cost of Merchandise Sold 2,366,000.000 10,100.000
Sales Salaries Expense 545,000.000 6,500.000
Advertising Expense 242,500.000
Depreciation Expense - 25,500.000
Store Supplies Expense - 4,000.000
Miscellaneous Selling Expense 10,500.000
Office Salaries Expense 307,000.000 8,000.000
Rent Expense 69,500.000 4,500.000
Insurance Expense - 6,000.000
Miscellaneous Administrative Expense 6,500.000
AMOUNT 5058500 5058500

INCOME STATEMENT
Revenue
Sales 4443000
Sales Returns and Allowances 88500
Sales Discounts 48180 136680
NET 4306320
Cost of Merchandise Sold 2376100
Profit 1930220
Expenses :
selling expense
Sales Salaries Expense 551500
Advertising Expense 242500
Depreciation Expense 25500
Store Supplies Expense 4000
Miscellaneous Selling Expense 10500
total 834000
administration expense
Office Salaries Expense 315000
Rent Expense 74000
Insurance Expense 6000
Miscellaneous Administrative Expense 6500
total 401500
TOTAL EXPENSE 1235500
NET INCOME 694720
 ADJUSTING ENTRIES ADJUSTED TRIAL BALANCE INCOME STATEMENT
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
155,720.000
185,000.000
10,100.000 435,000.000
6,000.000 8,000.000
4,000.000 5,500.000
455,500.000
25,500.000 71,500.000
78,000.000
19,000.000 19,000.000
491,500.000
110,000.000
4,443,000.000 4,443,000.000
88,500.000 88,500.000
48,180.000 48,180.000
10,100.000 2,376,100.000 2,376,100.000
6,500.000 551,500.000 551,500.000
242,500.000 242,500.000
25,500.000 25,500.000 25,500.000
4,000.000 4,000.000 4,000.000
 10,500.000 10,500.000
8,000.000 315,000.000 315,000.000
4,500.000 74,000.000 74,000.000
6,000.000 6,000.000 6,000.000
6,500.000 6,500.000
5103000 5103000 3748280 4443000
694720

OWNERS EQUITY
CAPITAL, 1 DEC 2019 491500 ASSETS
Net Income 694720 CURRERNT ASSETS
Prive -110000 Cash
Increase in owners quity 584720 Accounts Receivable
CAPITAL, 31 DEC 2019 1076220 Merchandise Inventory
Prepaid Insurance
Store Supplies
TOTAL CURRENT ASSETS
FIXED ASSETS
Store Equipment
Accumulated Depreciation—Store
TOTAL FIXED ASSETS

TOTAL ASSETS
 DATE
TATEMENT BALANCE STATEMENT DEC
CREDIT DABIT CREDIT 31
155,720.000
185,000.000 31
435,000.000
8,000.000
5,500.000
455,500.000
71,500.000
78,000.000
19,000.000
491,500.000
110,000.000
4,443,000.000

31
 4443000 1354720 660000
694720

BALANCE SHEET
ASSETS LIABILITIES
Accounts Payable 78000
155720 Expenses Payable 19000
185000 TOTAL LIABILITIES 97000
435000
8000 OWERS EQUITY
5500 CAPITAL, 31 DEC 2019 1076220
ETS 789220

455500
-71500
ED ASSETS 384000

1173220 TOTAL LIABILITIES AND OWNERS 1173220

 CLOSING ENTRIES
DESCRIPTION DEBIT CREDIT

SALE 4443000
INCOME SUMMARY 4443000
INCOME SUMMARY 3748280
Sales Returns and Allowances 88500
Sales Discounts 48180
Cost of Merchandise Sold 2376100
Sales Salaries Expense 551500
Advertising Expense 242500
Depreciation Expense 25500
Store Supplies Expense 4000
Miscellaneous Selling Expense 10500
Office Salaries Expense 315000
Rent Expense 74000
Insurance Expense 6000
Miscellaneous Administrative Expense 6500
INCOME SUMMARY 694720
CAPITAL 694720
CAPITAL 110000
DRAWING 110000
 POST CLOSING TRIAL BALANCE
Cash 155720
Accounts Receivable 185000
Merchandise Inventory 435000
Prepaid Insurance 8000
Store Supplies 5500
Store Equipment 455500
Accumulated Depreciation—Store Equipment 71500
Accounts Payable 78000
Expenses Payable 19000
Rahman, Capital 1076220
TOTAL 1244720 1244720