Trial Balance – Reversing Entries

The bookkeeper of Rossle Ong’s Toyland presented the following ledger accounts and their balances as of June 30, 2021
the end of fiscal period:
Cash in bank 487,288 Ong, Capital ???????
Advertising expense 9,000 Cash on Hand 75,200
Accounts Payable 54,000 Office Salaries Expense 33,400
Accum. Depr. – Store Furn. & Fix. 500 Sales 783,200
Accounts Receivable 112,000 Notes Receivable 4,800
Rent Expense 96,800 Taxes Expense 12,000
Purchase Discount 2,000 Freight In 6,000
Sales Discount 2,880 Ong, Withdrawals 30,000
Interest Expense 600 Unearned Commission 2,400
Interest Income 3,000 SSS Premiums Expense 6,424
Philhealth Premiums Expense 1,200 Withholding Taxes Payable 490
Purchases 242,000 Prepaid Store Insurance, 7/1/20 6,300
Allowance for bad debts 4,000 Sales return and allowances 5,020
Merchandise Inventory, 7/1/20 89,500 Store Furniture and Fixtures 16,000
Notes Payable – 5 yrs. 180,000 Electricity Expense 42,400
Purchase returns and allowances 3,000 Sales salaries expense 60,000
Office Furniture and Fixtures 15,000 Accum. Depr. – Off. Furn. & Fix. 900
SSS Premiums Payable 522 Pag-Ibig Premiums Expense 2,400
Philhealth Premiums Payable 100 Pag-Ibig Premiums Payable 200
Miscellaneous Income 2,000 Freight Out 1,500
Building 500,000 Land 250,000
Accum. Depr. – Building 25,000 Bank Service Charge 1,750
Gain on sale of investment 2,500 Loss on fire 14,000
Water Expense 2,500 Communication Expense 700
Representation Expense 2,000 Loss on flood 3,000
Additional data needed for adjustments:
a. Increase in allowance for doubtful accounts to 5% of receivable
b. The notes received from the customer consists of:
I. 30-day, 10% note for 4,000 dated June 10, 2021
II. 60-day 8%, 800 note dated June 5, 2021
c. The business has paid on January 1, 2020 insurance premium for two-year policy effective on that date
d. The store furniture and fixtures are depreciated over a useful life of 5 years. Of those on hand as of June 30, 6,000
were acquired on March 1, 2021.
e. The office furniture and fixtures are to be depreciated at a rate of 20% per annum
f. The building has a 50,000 salvage value and is to be depreciated at a rate of 15% per annum
g. Sales salaries of 550 has accrued as of June 30
h. On May 1, 2021, the business paid for a three month advertising contract for 9,000
i. The notes payable dated October 1, 2020 has a 18% interest for which no interest has yet been paid
j. The business received a commission of 2,400 but only one-third of this has been earned by the company
k. Merchandise unsold, per physical count of June 30, 2021, amounted to three-fourth of the beginning inventory

Additional Information for preparation of comprehensive income statement follows:

1. The building was occupied 20% store, 80% administration
2. The employer’s contribution for mandated benefits are allocated based on office and sales salaries
3. Electricity, water and communication is allocated on 4:3 basis for selling and administrative expenses respectively

Required:
1. Trial Balance
2. Adjusting Entries 5. Closing Entries
3. Prepare a worksheet 6. Post-Closing Trial Balance
4. Financial Statements 7. Reversing Entries