IZZY Trading
Adjusted Trial Balance
December 31, 2016
       
    DEBIT CREDIT
       
Cash in Bank   480,028.00 -
Accounts Receivable   67,200.00 -
Merchandise Inventory   500,000.00 -
Input Tax   24,441.60 -
Store Furniture and Fixtures   120,000.00 -
Store Equipment   90,000.00 -
Accounts Payable   - 56,000.00
SSS Payable   - 2,000.00
Pag-IBIG Payable   - 1,000.00
PhilHealth Payable   - 1,000.00
Witholding Tax Payable   - 4,000.00
Output Tax   - 42,069.60
Izzy Capital   - 1,160,000.00
Sales   - 363,000.00
Sales Discounts   5,420.00 -
Sales Returns and Allowances   7,000.00 -
Purchases   210,000.00 -
Freight-In   4,300.00 -
Purchase Discount   - 2,320.00
Purchase Return and Allowances   - 4,000.00
Salaries Expense   65,000.00 -
Rent Expense   9,000.00 -
Insurance Expense   3,000.00 -
Office Supplies Expense   6,000.00 -
Store Supplies Expense   5,000.00 -
Taxes and Licenses   8,000.00 -
Freight-Out   4,000.00 -
SSS Contributions   1,000.00 -
Pag-IBIG Contributions   500.00 -
PhilHealth Contributions   500.00 -
    - -
    - -
Merchandise Inventory, Dec. 31   - -
Prepaid Rent   10,000.00 -
Prepaid Insurance   12,000.00 -
Utilities Expense   3,500.00 -
Utilities Payable   - 3,500.00
Salaries Payable   - 4,000.00
Depreciation Expense   2,250.00 -
Accumulated Depreciation - Store Furnitures - 1,000.00
Accumulated Depreciation - Store Equipment - 1,250.00
Office Supplies   4,000.00 -
Store Supplies   3,000.00 -
Doubtful Accounts   3,360.00 -
Allowance for Doubtful Accounts   - 3,360.00
       
TOTAL   1,648,499.60 1,648,499.60
           
IZZY Trading
Income Statement
For the Month Ended December 31, 2016
           
           
           
Gross Sales       363,000.00
Less: Sales Discount 5,420.00  
  Sales Return and Allowances 7,000.00 12,420.00
Net Sales       350,580.00
           
Cost of Sales        
  Merchandise Inventory-Beginning (the initial Investment)   500,000.00
  Add: Purchases 210,000.00  
    Add: Freight In 4,300.00  
    Gross Purchases 214,300.00  
    Less: Purchase Discount 2,320.00  
      Purchase Return and Allowances 4,000.00  
Net
  Purchases     207,980.00
  Cost of Goods Available for Sales   707,980.00
  Less: Merchandise Inventory - Ending (as per Post-Closing Trial Balance) 540,000.00
  Cost of Sales (Cost of Goods Sold)   167,980.00
           
Gross Profit       182,600.00
           
Operating Expenses      
  Salaries Expense 65,000.00  
  Rent Expense   9,000.00  
  Insurance Expense 3,000.00  
Office
  Supplies   6,000.00  
Store
  Supplies   5,000.00  
  Taxes and Licenses 8,000.00  
  Freight- Out   4,000.00  
  SSS Contribution 1,000.00  
  Pag-IBIG Contribution 500.00  
  PhilHealth Contribution 500.00  
  Depreciation Expense 2,250.00  
  Doubtful Accounts 3,360.00  
  Utilities Expense 3,500.00  
  Total Operating Expenses   111,110.00
NET
INCOME       71,490.00
     
IZZY Trading
Balance Sheet
As of December 31, 2016
     
     
ASSET  
Current Assets  
  Cash 480,028.00
  Accounts Receivable 67,200.00
  Allowance for Doubtful Accounts (3,360.00)
  Merchandise Inventory 540,000.00
  Office Supplies 4,000.00
  Store Supplies 3,000.00
  Prepaid Insurance 12,000.00
  Prepaid Rent 10,000.00
  Total Current Assets 1,112,868.00
     
     
Non-Current Assets  
  Store Furniture and Fixtures 120,000.00
  Accumulated Depreciation - Store Furnitures (1,000.00)
  Store Furniture and Fixtures (net) 119,000.00
     
  Store Equipment 90,000.00
  Accumulated Depreciation - Store Equipment (1,250.00)
  Store Equipment (net) 88,750.00
     
     
     
  Total Non-Current Assets 207,750.00
     
TOTAL ASSETS 1,320,618.00
     
     
LIABILITIES  
Current Liabilities  
  Accounts Payable 56,000.00
  Salaries Payable 4,000.00
  Utilities Payable 3,500.00
  SSS Payable 2,000.00
  Pag-IBIG Payable 1,000.00
  PhilHealth Payable 1,000.00
  Witholding Tax Payable 4,000.00
  VAT Payable 17,628.00
  Current Liabilities 89,128.00
TOTAL LIABILITIES 89,128.00
     
OWNER'S EQUITY  
  Izzy Capital - Beginning 1,160,000.00
  Add: Net Income for the Period 71,490.00
  Izzy Capital - Ending 1,231,490.00
TOTAL OWNER'S EQUITY 1,231,490.00
     
TOTAL LIABILITIES AND OWNER'S EQUITY 1,320,618.00
 Izzy Trading
Statement of Changes in Equity
For the Year Ended December 31, 2016
     
     
Beginning Capital, December 1, 2016 1,160,000.00
Add: Net Income for the Period 71,490.00
Total   1,231,490.00
Less: Withdrawal -
Ending Capital, December 31, 2016 1,231,490.00

Izzy Trading
Statement of Cash Flows
For the Year Ended December 31, 2016
       
       
       
Cash Flows from Operating Activities  
  Net Income for the Period 71,490.00
  Adjustments for:  
    Depreciation 2,250.00
  Total 73,740.00
    (Increase) Decrease in Receivables (63,840.00)
    (Increase) Decrease in Merchandise Inventory (540,000.00)
    (Increase) Decrease in Office Supplies (4,000.00)
    (Increase) Decrease in Store Supplies (3,000.00)
    (Increase) Decrease in Prepaid Insurance (12,000.00)
    (Increase) Decrease in Prepaid Rent (10,000.00)
    Increase (Decrease) in Accounts Payable 56,000.00
    Increase (Decrease) in Salaries Payable 4,000.00
    Increase (Decrease) in Utilities Payable 3,500.00
    Increase (Decrease) in SSS Payable 2,000.00
    Increase (Decrease) in Pag-IBIG Payable 1,000.00
    Increase (Decrease) in PhilHealth Payable 1,000.00
    Increase (Decrease) in Witholding Tax Payable 4,000.00
    Increase (Decrease) in VAT Payable 17,628.00
  Net Cash Provided (Used) by Operating Activities (469,972.00)
       
Cash Flows from Investing Activities  
    (Increase) Decrease in Store Furniture and Fixtures (Invested by the Owner) (120,000.00)
    (Increase) Decrease in Store Equipment (Invested by the Owner) (90,000.00)
  Net Cash Provided (Used) by Investing Activities (210,000.00)
       
Cash Flows from Financing Activities  
    Proceeds from the Investment by the Owner 1,160,000.00
  Net Cash Provided (Used) by Investing Activities 1,160,000.00
       
Net Increase (Decrease) in Cash for the Period 480,028.00
Add: Beginning Balance of Cash, December 01, 2016 -
Ending Cash Balance, December 31, 2016 480,028.00
BANK RECONCILIATION    
       
Bank Balance - January 31 300,000.00  
February Bank Deposits 7,320,000.00  
February Bank Disbursement (4,355,000.00)  
Bank Balance - February 28 3,265,000.00  
February Deposits in Transit    
  Feb. 28 450,000.00  
February Outstanding Checks    
  Check No. 116 (60,000.00)  
  Check No. 123 (180,000.00)  
  Check No. 125 (250,000.00)  
ADJUSTED BANK BALANCE - Feb. 28 3,225,000.00  
       
       
Balance per Book - February 28 (SQUEEZED) 2,930,000.00  
Face of the Note Collected by Bank 250,000.00  
Interest on the Note 30,000.00  
Bank Service Charge (5,000.00)  
Bank Collection Charge (10,000.00)  
ADJUSTED BOOK BALANCE - Feb. 28 3,225,000.00  
       
       
Journal Entries:    
       
Cash 270,000.00  
Bank Collection Charge Expense 10,000.00  
  Notes Receivable   250,000.00
  Interest Income   30,000.00
  * to record the Note Collected by the Bank    
       
Bank Service Charge Expense 5,000.00  
  Cash   5,000.00
  *to record the February Bank Service Charge