Debit Credit

Cash 110,350
Account receivable 54600
Note receivable 8000
Inventory-opening 40,500
Supplies 650
Prepaid insurance 1200
Furniture and Fixture 183,200
Accumulated depreciation-furniture 2400
Account payable 47,000
Note payable (long-term) 12,600
Capital-Frank 100,000
Sales revenue 338,000
Sales discount 1400
Sales return and allowance 2000
Interest revenue 600
Purchases 89,300
Purchases discount 3000
Purchases return and allowances 1200
Freight in 5200
Rent expense 8400
TOTAL 504,800 504,800
Income Stament

Sales 338000
S.dicsount -1400
Return and allowance -2000
Net Sales 334600
COGS
Opening Inventory 40,500
purchase 89300
freight in 5200
closing inventory -42000
purchase dis -3000
purchase return and allowance -1200
Less: COGS 88,800

Gross Profit 245,800

Opearting Expenses:
rent 8400
dep 3664
Less: total operating expense 12064

operating income 233,736

interest revenue 600
Earning before intrest and tax 234,336

Less : tax 23434

Earning After tax 210,902

BALANCE SHEET
CURRENT & FIXED ASSETS Liabilities:
Cash 110,350 A/c Payable 47000
Account Rec 54,600 Notes Payable 12600
Notes Recievable 8,000 Total liabilities 59600
Closing inventory 42,000
Supplies 650 Equity
Prepaid insurance 1,200 Capital 100000
Less:Accumulated Dep Furniture -2,400 Net Profit 210902
Furniture & Fixture 183,200

Total Assets 397,600 370502