ADJUSTING ENTRIES

Date Particulars P/R Debit Credit

December 31 Interest Receivable 105 1,625
Interest Income 142 1,625

Salaries Expense 166 14,000

Salaries Payable 121 14,000

Interest Expense 169 3,540

Interest Payable 122 3,540

Insurance Expense 163 12,000

Prepaid Insurance Expense 109 12,000

Prepaid Advertising Expense 108 15,500

Cash 101 15,500

Allowance for Doubtful Accounts 106 7,600

Bad Debt Expense 164 7,600

Accumulated Depreciation - Building 112 7,500

Depreciation Expense 165 7,500

Accumulated Depreciation - Furnitur 114 9,250

Depreaciation Expense 165 9,250

Accumulated Depreciation - Equime 116 800

Depreciation Expense 165 800

Inventory 103 189,000

Income Summary 160 189,000
 Jane Christine General Merchandising
Adjusted Trial Balance
Account December 31, 2021
no. Account Title Debit Credit
101 Cash on Hand 324,500
102 Investment in Trading Securities 148,000
103 Inventory on Hand
104 Accounts Receivable 164,000
105 Interest Receivable 1,625
106 Allowance for Doubtful Accounts 17,600
107 Notes Receivable 75,000
108 Prepaid Advertising Expense 15,500
109 Prepaid Insurance Expense 28,000
110 Land 1,000,000
111 Building 850,902
112 Accumulated Depreciation – Building 208,953
113 Furniture 650,450
114 Accumulated Depreciation – Furniture 124,712
115 Equipment 65,780
116 Accumulated Depreciation – Equipme 800
120 Accounts Payable 52,890
121 Salary Payable 14,000
122 Interest Payable 3,540
123 Notes payable – Long-term 50,000
130 Mortgage Payable 500,000
140 Jane Christine, Capital 2,304,517
141 Jane Christine, Drawing 15,000
142 Interest Income 1,625
150 Sales 1,210,000
151 Sales Returns & Allowances 3,580
152 Purchases 692,000
153 Purchase Discount 5,060
154 Purchase Returns & Allowances 96,000
160 Income Summary
161 Freight-out 96,420
162 Rent Expense 100,000
163 Insurance Expense 12,000
164 Bad Debt Expense 7,600
165 Depreciation Expense - Building 7,500
165 Depreciation Expense - Furniture 9,250
165 Depreciation Expense - Equipment 800
166 Salary Expense 214,500
167 Utilities Expense 16,000
168 Advertising Expense 46,500
169 Interest Expense 44,790
4,589,697 4,589,697
 Jane Ch

For the M

Accoun Trial Balance Adjustments

t no. Account Title Debit Credit Debit
101 Cash on hand 340,000
102 Investment in trading securities 148,000
103 Inventory on hand
104 Accounts receivable 164,000
105 Interest Receivable 1,625
106 Allowance for doubtful accounts 10,000
107 Notes receivable 75,000
108 Prepaid advertising expense 15,500
109 Prepaid insurance expense 40,000
110 Land 1,000,000
111 Building 850,902
112 Accumulated depreciation – building 201,453
113 Furniture 650,450
114 Accumulated depreciation – furniture 115,462
115 Equipment 65,780
116 Accumulated depreciation – equipment
120 Accounts payable 52,890
121 Salary Payable
122 Interest Payable
123 Notes payable – longterm 50,000
130 Mortgage payable 500,000
140 Jane Christine, Capital 2,304,517
141 Jane Christine, Drawing 15,000
142 Interest Income
150 Sales 1,210,000
151 Sales returns & allowances 3,580
152 Purchases 692,000
153 Purchase discount 5,060
154 Purchase returns & allowances 96,000
160 Income Summary
161 Freight- out 96,420
162 Rent expense 100,000
163 Insurance Expense 12,000
164 Bad Debt Expense 7,600
165 Depreciation Expense - Building 7,500
165 Depreciation Expense - Furniture 9,250
165 Depreciation Expense - Equipment 800
166 Salary Expense 200,500 14,000
167 Utilities Expense 16,000
168 Advertising Expense 46,500
169 Interest Expense 41,250 3,540
4,545,382 4,545,382 71,815
 Jane Christine General Merchandising
Worksheet
For the Month Ended December 31, 2021

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit Debit Credit
15,500 324,500 324,500
148,000 148,000
189,000 189,000
164,000 164,000
1,625 1,625
7,600 17,600 17,600
75,000 75,000
15,500 15,500
12,000 28,000 28,000
1,000,000 1,000,000
850,902 850,902
7,500 208,953 208,953
650,450 650,450
9,250 124,712 124,712
65,780 65,780
800 800 800
52,890 52,890
14,000 14,000 14,000
3,540 3,540 3,540
50,000 50,000
500,000 500,000
2,304,517 2,304,517
15,000 15,000
1,625 1,625 1,625
1,210,000 1,210,000
3,580 3,580
692,000 692,000
5,060 5,060
96,000 96,000

96,420 96,420
100,000 100,000
12,000 12,000
7,600 7,600
7,500 7,500
9,250 9,250
 800 800
214,500 214,500
16,000 16,000
46,500 46,500
44,790 44,790
71,815 4,589,697 4,589,697 1,250,940 1,501,685 3,527,757 3,277,012
250,745 250,745
1,501,685 1,501,685 3,527,757 3,527,757
 Jane Christine General Merchandising
Income Statement
For the month ended December 31, 2021
Net Sales
Sales 1,210,000
Less:Sales Return & Allowances 3,580
Net Sales 1,206,420
Cost of Sales
Purchases 692,000
Less:Purchase Return & Allowances 96,000
Purchase Discount 5,060 101,060
Goods Available for Sale 590,940
Less:Inventory, End 189,000
Cost of Sales 401,940
Gross Profit 804,480
Other Income
Interest Income 1,625
Operating Expenses
Selli Expenses
Freight-out 96,420
Advertising Expense 46,500 142,920
Administrative Expenses
Rent Expense 100,000
Insurance Expense 12,000
Bad Debt Expense 7,600
Depreciation Expense - Building 7,500
Depreciation Expense - Furniture 9,250
Depreciation Expense - Equipmen 800
Salary Expense 214,500
Utilities Expense 16,000 367,650
Operating Profit 510,570
Finance Cost 44,790
Net Income 250,745
 Jane Christine General Merchandising
Statement of Changes in Equity
For the month ended December 31, 2021
Jane Christine, Capital, Beg. 2,304,517
Net Income 250,745
Total 2,555,262
Jane Christine, Drawing 15,000
Jane Christine, Capital, End 2,540,262
 Jane Christine General Merchandising
Statement of Financial Position
December 31, 2021
Assets
Current Assets
Cash on Hand 324,500
Investment in Trading Securities 148,000
Accounts Receivable 164,000
LessAllowance for Doubtful Accounts 17,600 146,400
Inventory 189,000
Interest Receivable 1,625
Notes Receivable 75,000
Prepaid Advertising Expense 15,500
Prepaid Insurance Expense 28,000
Total Current Assets 928,025

Non-current Assets
Land 1,000,000
Building 850,902
LessAccumulated Depreciation - Building 208,953 641,949
Furniture 650,450
LessAccumulated Depreciation - Furniture 124,712 525,738
Equipment 65,780
LessAccumulated Depreciation - Equipmen 800 64,980
Total Non-current Assets 2,232,667
Total Assets 3,160,692

Liabilities and Equity

Current Liabilities
Accounts Payable 52,890
Salary Payable 14,000
Interest Payable 3,540
Total Current Liabilities 70,430

Non-current Liabilities
Notes payable – Long-term 50,000
Mortgage Payable 500,000
Total Non-current Liabilities 550,000
Total Liabilities

Owner's Equity
Jane Christine, Capital, End 2,540,262
Total Liabilities and Owner's Equity 3,160,692