III.

Trial Balance

GD Enterprises
Trial Balance
November 30, 20x1
Account Title Debit Credit
Cash P 85,122
Accounts Receivable 33,700
Merchandise Inventory 98,360
Office Supplies 2,000
Equipment 450,000
Accounts Payable P 29,200
Notes Payable 120,000
Golden Dragon, Capital 550,000
Golden Dragon, Drawing 12,208
Sales 100,600
Sales Returns and Allowances 9,500
Sales Discount 610
Cost of Goods Sold 57,300
Freight-Out 2,000
Advertising Expenses 5,500
Utilities Expense 2,000
Rent Expense 10,500
Salaries Expense 31,000
Total P 799,800 P 799,800
IV. Financial Statements
GD Enterprise
Income Statement
For the Month Ended November 30, 20x1
Sales P 100,600
Sales returns and allowances P 9,500
Sales Discount 610 (10,110)
Net Sales 90,490
Cost of Goods sold (57,300)
Gross Profit 33190
Freight out (2,000)
Advertising Expense (5,500)
Utilities expense (2,000)
Rent Expense (10,500)
Salaries Expense (31,000) (51,000)
Net loss P (17,810)

GD Enterprises
Statement of Owner’s Equity
For the Month Ended November 30, 20x1
Golden Dragon, Owner’s Equity 11/1/20x1 P 550,000
Net loss (17,810)
Total 532,190
Withdrawal (12,208)
Golden Dragon, Owner’s Equity 11/30/20x1 P 519,982

Current Assets:

Cash P 85,122
Accounts Receivable 33,700
Merchandise Inventory 98,360
Office Supplies 2,000 P 219,182
Non-Current Assets:
Equipment 450,000 450,000
Total Assets 669,182
Liabilities and Owner’s Equity

Current Liabilities: 29,200 29,200

Non-current Liabilities: 120,000 120,000

Total Liabilities 149,200

Owner’s Equity
Jewel Dragon, Capital 519,982 519,982
Total Liabilities and Equity P 669182
 J.D. Enterprises
STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED DECEMBER 30, 2017
Operating activities
Cash received from clients P 66,290

Cash refund from supplier 5,500

Payments to suppliers (133,960)

Payments to employees (31,000)

Payment for rent (10,500)

Payment for utilities (2,000)

Payment for office supplies (2,000)

Payment for advertising (5,500)

Cash refund to customer (9,500)

Net cash provided by (used in) operating activities P (122,670)

Cash flow from Investing Activities:

Payment to acquire equipment (450,000)

Net cash provided by (used in) investing activities (450,000)

Cash flow from Financing Activities:

Cash received as investment by owner 550,000

Cash received as borrowing 120,000

Payments for withdrawals by owner (12,208)

Net cash provided by (used in) financing activities 657,792

Net increase (decrease) in Cash 85,122

Cash balance at the beginning of the period 0

Cash balance at the end of the period P 85,122

GJ-03 5. Closing Entries

Date Particulars Post Ref Debit Credit
Nov 30 Sales 100,600
Income Summary 17,810
Sales Return and allowances 9,500
Sales Discount 610
Cost of Goods sold 57,300
Freight out 2,000
Advertising Expense 5,500
Utilities Expense 2,000
Rent Expense 10,500
Salaries Expense 31,000

Dragon, Capital 17,810

Income Summary 17,810

Dragon, Capital 12,208

Dragon, Drawing 12,208
6. Post-Closing Trial Balance
J.D. Enterprises
Post-Clsoing Trial Balance
November 30, 2017
Account Title Debit Credit

Cash 85,122

Accounts Receivable 33,700

Merchandise Inventory 98,360

Office Supplies 2,000

Equipment 450,000

Accounts Payable 29,200

Notes Payable 120,000

Dragon, Capital 519,982

P 666,182 P 666,182

Case 2 : Same as Periodic Inventory System Answers