Journal Entry

Date Particulars Debit Credit

Dec. 1 Prepaid Advertising 6,000
Cash 6,000

Dec. 3 Accounts Receivable 5,000

Sales 5,000

Dec. 4 Purchases 15,900

Accounts Payable 15,900

Dec. 10 Office Supplies 12,000

Accounts Payable 12,000

Dec. 12 Accounts Receivable 10,000

Sales 10,000

Dec. 12 Transportation Out 1,500

Cash 1,500

Dec. 14 Purchases 20,000

Transportation In 3,000
Cash 23,000

Dec. 15 Sales Returns and Allowances 1,000

Accounts Receivable 1,000

Dec. 18 Accounts Payable 3,000

Purchases Returns and Allowances 3,000

Dec. 19 Cash 5,000

Accounts Receivable 5,000

Dec. 20 Cash 8,910

Sales Discounts 90
Account Receivable 9,000

Dec. 25 A. Suarez, Withdrawals 3,000

Cash 3,000

Dec. 28 Accounts Payable 12,900

Cash 12,900

Dec. 29 Cash 25,000

 Sales 25,000

Dec. 30 Sales Returns and Allowances 4,000

Cash 4,000

Dec. 30 Rent Expense 5,000

Subscription Expense 3,000
Salaries Expense 30,000
Cash 38,000
 Alexander Suarez Trading
Unadjusted Trial Balance
For the Year Endeded December 31, 2022

Particulars Debit Credit

Cash 148,510
Accounts Receivable 232,000
Office Supplies 107,000
Other Supplies 36,000
Merchandise Inventory 450,000
Prepaid Advertising 6,000
Furniture and Fixtures 125,000
Accumulated Depreciation - Furniture and Fixtures 75,000
Office Building 1,800,000
Accumulated Depreciation - Office Building 270,000
Office Equipment 850,000
Accumulated Depreciation - Office Equipment 170,000
Accounts Payable 92,000
Mortgage Payable 850,000
A. Suarez, Capital 1,840,000
A. Suarez, Withdrawals 3,000
Sales 821,000
Sales Returns and Allowances 5,000
Sales Discounts 90
Purchases 321,900
Purchases Returns and Allowances 33,000
Purchases Discounts 20,500
Transportation In 3,000
Insurance Expense 5,000
Travel Expense 14,000
Subscription Expense 5,500
Rent Expense 10,000
Salaries Expense 40,000
Fuel Expense 8,000
Transportation Out 1,500
Total 4,171,500 4,171,500
ADJUSTING ENTRIES

a. Advertising Expense 2,000

Prepaid Advertising 2,000

b. Office Supplies Expense 35,000

Office Supplies 35,000

c. Salaries Expense 25,000

Salaries Payable 25,000

d. Depreciation Expense - Office Building 90,000

Depreciation Expense - Office Equipment 85,000
Depreciation Expense - Furniture and Fixtures 25,000
Accumulated Depreciation - Office Building 90,000
Accumulated Depreciation - Office Equipment 85,000
Accumulated Depreciation - Furniture and Fixtures 25,000

e. Utilities Expense 30,000

Utilities Payable 30,000
 Alexander Suarez Trading
Worksheet
For the Year Ended December 31, 2022

ACCOUNT TITLE UNADJUSTED ADJUSTMENTS ADJUSTED

TRIAL BALANCE TRIAL BALANCE
Debit Credit Debit Credit Debit
Cash 148,510 148,510
Accounts Receivable 232,000 232,000
Office Supplies 107,000 35,000 72,000
Other Supplies 36,000 36,000
Merchandise Inventory 450,000 450,000
Prepaid Advertising 6,000 2,000 4,000
Furniture and Fixtures 125,000 125,000
Accumulated Depreciation - Furniture and Fixtures 75,000 25,000
Office Building 1,800,000 1,800,000
Accumulated Depreciation - Office Building 270,000 90,000
Office Equipment 850,000 850,000
Accumulated Depreciation - Office Equipment 170,000 85,000
Accounts Payable 92,000
Salaries Payable 25,000
Utilities Payable 30,000
Mortgage Payable 850,000
A. Suarez, Capital 1,840,000
A. Suarez, Withdrawals 3,000 3,000
Sales 821,000
Sales Returns and Allowances 5,000 5,000
Sales Discounts 90 90
Purchases 321,900 321,900
Purchases Returns and Allowances 33,000
Purchases Discounts 20,500
Transportation In 3,000 3,000
Insurance Expense 5,000 5,000
Travel Expense 14,000 14,000
Subscription Expense 5,500 5,500
Rent Expense 10,000 10,000
Salaries Expense 40,000 25,000 65,000
Fuel Expense 8,000 8,000
Transportation Out 1,500 1,500
Advertising Expense 2,000 2,000
Office Supplies Expense 35,000 35,000
Utilities Expense 30,000 30,000
Depreciation Expense - Office Building 90,000 90,000
Depreciation Expense - Office Equipment 85,000 85,000
Depreciation Expense - Furniture and Fixtures 25,000 25,000
Total 4,171,500 4,171,500 292,000 292,000 4,426,500
Profit
TOTAL
022

ADJUSTED INCOME BALANCE

TRIAL BALANCE STATEMENT SHEET
Credit Debit Credit Debit Credit
148,510
232,000
72,000
36,000
450,000 395,000 395,000
4,000
125,000
100,000 100,000
1,800,000
360,000 360,000
850,000
255,000 255,000
92,000 92,000
25,000 25,000
30,000 30,000
850,000 850,000
1,840,000 1,840,000
3,000
821,000 821,000
5,000
90
321,900
33,000 33,000
20,500 20,500
3,000
5,000
14,000
5,500
10,000
65,000
8,000
1,500
2,000
35,000
30,000
90,000
85,000
25,000
4,426,500 1,155,990 1,269,500 3,665,510 3,552,000
113,510 113,510
1,269,500 1,269,500 3,665,510 3,665,510
 Alexander Suarez Trading
Income Statement
For the Year Ended December 31, 2022

Net Sales
Gross Sales 821,000
Less: Sales Returns and Allowances 5,000
Sales Discounts 90 5,090
Net Sales 815,910
Cost of Sales
Merchandise Inventory, 1/1/2022 450,000
Purchases 321,900
Less: Purchases Returns and Allowances 33,000
Purchase Discounts 20,500 53,500
Net Puchases 268,400
Transportation In 3,000
Net Cost of Purchases 271,400
Goods Available for Sale 721,400
Less: Merchandise Inventory, 12/31/2019 395,000 326,400
Cost of Sales 489,510
Gross Profit
Operating Expense
Insurance Expense 5,000
Travel Expense 14,000
Subscription Expense 5,500
Rent Expense 10,000
Salaries expense 65,000
Fuel Expense 8,000
Transportation Out 1,500
Advertising Expense 2,000
Office Supplies Expense 35,000
Utilities Expense 30,000
Depreciation Expense - Office Building 90,000
Depreciation Expense - Office Equipment 85,000
Depreciation Expense - Furniture and Fixtures 25,000
Total Operating Expense 376,000
Profit 113,510
 Alexander Suarez Trading
Statement of Financial Position
For the Year Ended December 31, 2022

Assets
Current Assets
Cash 148,510
Accounts Receivable 232,000
Merchandise Inventory 395,000
Office Supplies 72,000
Other Supplies 36,000
Prepaid Advertising 4,000
Total Current Assets 887,510
Property and Equipment (net)
Furniture and Fixtures 125,000
Less: Accumulated Depreciation 100,000 25,000
Office Building 1,800,000
Less: Accumulated Depreciation 360,000 1,440,000
Office Equipment 850,000
Less: Accumulated Depreciation 255,000 595,000 2,060,000
Total Assets 2,947,510

Liabilities
Current Liabilities
Accounts Payable 92,000
Accrued Salaries 25,000
Accrued Utilities 30,000
Total Current Liabilities 147,000
Non-Current Liabilities
Mortgage Payable 850,000
Total Liabilities 997,000

Owner's Equity
Mendez, Capital, Dec. 31 1,950,510
Total Liabilities and Owner's Equity 2,947,510
 Alexander Suarez Trading
Statement of Changes in Equity
For the Year Ended December 31, 2022

A. Suarez, Owner's Equity, 1/1/2022 1,840,000

Add: Profit 113,510
Total 1,953,510
Less: Withdrawal 3,000
Mendez, Owner's Equity, 12/31/2019 1,950,510
 CLOSING ENTRIES

Date Particulars Debit Credit

Merchandise Inventory, 12/31/2022 395,000
Sales 821,000
Purchases Returns and Allowances 33,000
Purchases Discounts 20,500
Income Summary 1,269,500

Dec. 31 Income Summary 1,155,990

Merchandise Inventory, 1/1/2022 450,000
Sales Returns and Allowances 5,000
Sales Discounts 90
Purchases 321,900
Transportation In 3,000
Insurance Expense 5,000
Travel Expense 14,000
Subscription Expense 5,500
Rent Expense 10,000
Salaries Expense 65,000
Fuel Expense 8,000
Transportation Out 1,500
Advertising Expense 2,000
Office Supplies Expense 35,000
Utilities Expense 30,000
Depreciation Expense - Office Building 90,000
Depreciation Expense - Office Equipment 85,000
Depreciation Expense - Furniture and Fixtures 25,000

Dec. 31 Income Summary 113,510

A. Suarez, Capital 113,510

Dec. 31 A. Suarez, Capital 3,000

A. Suarez, Withdrawals 3,000
 Alexander Suarez Trading
Post-Closing Trial Balance
Dec. 31, 2019

Accounts Title Debit Credit

Cash 148,510
Accounts Receivable 232,000
Office Supplies 72,000
Other Supplies 36,000
Merchandise Inventory 395,000
Prepaid Advertising 4,000
Furniture and Fixtures 125,000
Accumulated Depreciation - Furniture and Fixtures 100,000
Office Building 1,800,000
Accumulated Depreciation - Office Building 360,000
Office Equipment 850,000
Accumulated Depreciation - Office Equipment 255,000
Accounts Payable 92,000
Salaries Payable 25,000
Utilities Payable 30,000
Mortgage Payable 850,000
A. Suarez, Capital 1,950,510
Total 3,662,510 3,662,510