Problem #5

Preparing the Worksheet

The unadjusted trial balance of the Dores Marie Pateno Hobby Shop on Dec. 31 2020 appears below:

Dores Marie Pateno Hobby Shop

Unadjusted trial Balance
Dec. 31, 2020

Cash P 100,000
Accounts Receivable 500,000
Merchandise Inventory 700,000
Prepaid Rent 300,000
Shop Equipment 1,600,000
Accumulated Depreciation P 200,000
Accounts Payable 400,000
Pateno, Capital ` 1,300,000
Pateno, Withdrawals 100,000
Sales 2,900,000
Sales Discount 100,000
Purchases 800,000
Purchases Returns and Allowance 200,000
Transportation In 100,000
Salaries Expense 400,000
Advertising Expense 150,000
Utilities Expense 100,000
Supplies Expense 50,000 .
Totals P 5,000,000 P 5,000,000

Additional information:

a. Accrued salaries at year-end amounted to P 30,000.

b. Rent in the amount of P 100,000 has expired during the year.
c. Depreciation on shop equipment is P 200,000.
d. The Dec. 31 merchandise inventory amounted to P 500,000.

Required:
Prepare the worksheet
Answer:

Dores Marie Pateno Hobby Shop

Worksheet
For the Year Ended December 31, 2018
Trial Balance Adjustments Income Statement Balance Sheet
DR CR DR CR DR CR DR CR
Cash 100,000 100,000
Accounts Receivable 500,000 500,000
Merchandise Inventory 700,000 700,000 500,000 500,000
Prepaid Rent 300,000 100,000 200,000
Shop Equipment 1,600,000 1,600,000
Accumulated Depreciation - Shop Equipment 200,000 200,000 400,000
Accounts Payable 400,000 400,000
Salaries Payable 30,000 30,000
Pateno, Capital 1,300,000 1,300,000
Pateno, Withdrawals 100,000 100,000
Sales 2,900,000 2,900,000
Sales Discounts 100,000 100,000
Purchases 800,000 800,000
Purchases Returns and Allowances 200,000 200,000
Transportation In 100,000 100,000
Salaries Expense (A) 400,000 30,000 430,000
Advertising Expense (S) 150,000 150,000
Utilities Expense (A) 100,000 100,000
Supplies Expense (S) 50,000 50,000
Rent Expense (A) 100,000 100,000
Depreciation Expense - Shop Equipment (A) 200,000 200,000
5,000,000 5,000,000 330,000 330,000 2,730,000 3,600,000 3,000,000 2,130,000
Profit 870,000 870,000
3,600,000 3,600,000 3,000,000 3,000,000
Problem #6

Preparing the Worksheet

The Unadjusted trial balance of the John Bala Maps as at Dec. 31, 2020 follows:

John Bala Maps

Unadjusted Trial Balance
Dec. 31, 2020

Cash P 31,000
Accounts Receivable 83,000
Merchandise 627,000
Prepaid insurance 54,000
Office Supplies 68,000
Office equipment 370,000
Accumulated Depreciation P 50,000
Accounts Payable 58,000
Bala, Capital 517,000
Bala, Withdrawals 87,000
Sales 2,675,000
Sales Return and Allowance 26,000
Sales Discounts 23,000
Purchases 1,512,000
Purchases Return and Allowance 14,000
Purchase Discounts 19,000
Transport In 38,000
Salaries Expense 327,000
Advertising Expense 61,000
Rent Expense 26,000 .
Total P 3,333,000 P 3,333,000

Additional information:
a. Merchandise inventory as at Dec. 31, 2020 amounted to P 532,000.
b. Insurance coverage with premium of P 18,000 has expired during the year.
c. Depreciation for the year amounted to P 25,000.
d. Office supplies remaining at the year-end amounted to P 15,000.
e. Salaries in the amount of P 9,000 have accrued as at Dec. 31, 2020.

Required:
Prepare the Worksheet.

Answer:

John Bala Maps

Worksheet
December 31, 2020

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 31,000 31,000 31,000
Accounts Receivable 83,000 83,000 83,000
Merchandise Inventory 627,000 627,000 627,000 532,000 532,000
Prepaid Insurance 54,000 b) 18,000 36,000 36,000
Office Supplies 68,000 d) 53,000 15,000 15,000
Office Equipment 370,000 370,000 370,000
Accumulated Depreciation 50,000 c) 25,000 75,000 75,000
Accounts Payable 58,000 58,000 58,000
Bala, Capital 517,000 517,000 517,000
Bala, Withdrawals 87,000 87,000 87,000
Sales 2,675,000 2,675,000 2,675,000
Sales Returns and Allowances 26,000 26,000 26,000
Sales Discounts 23,000 23,000 23,000
Purchases 1,512,000 1,512,000 1,512,000
Purchases Returns and Allowances 14,000 14,000 14,000
Purchases Discounts 19,000 19,000 19,000
Transportation In 38,000 38,000 38,000
Salaries Expense 327,000 e) 9,000 336,000 336,000
Advertising Expense 61,000 61,000 61,000
Rent Expense 26,000 26,000 26,000
3,333,000 3,333,000
Insurance Expense b) 18,000 18,000 18,000
Depreciation Expense c) 25,000 25,000 25,000
Office Supplies Expense d) 53,000 53,000 53,000
Salaries Payable e) 9,000 9,000 9,000
105,000 105,000 3,367,000 3,367,000 2,745,000 3,240,000 1,154,000 659,000
Profit 495,000 495,000
3,240,000 3,240,000 1,154,000 1,154,000