Basic Accounting Enhancement

Final Requirement

CABILTES, JOIELYN B. BSA – 1

JOURNAL ENTRIES

a.) Cash P100,000

Sanamaram Ahk, Capital 100,000
To record the initial investment.

b.) Cash 500,000

Sales 500,000
To record sales.

c.) Cash 800,000

Accounts Receivable 800,000
To record collection of accounts receivable.

d.) Cash 60,000

Rent Income 60,000
To record income from rent.

e.) Taxes and Licenses Expense 5,000

Cash 5,000
To record payment for business registration and permits.

f.) Store Supplies Expense 1,500

Cash 1,500
To record purchase of store supplies.

g.) Salaries Expense 54,000

Cash 54,000
To record payment for salaries.

h.) Purchases 400,000

Cash 400,000
To record purchase of goods.

i.) Accounts Payable 500,000

Cash 500,000
To record payment for accounts payable.
j.) Utilities Expense 18,000
Cash 18,000
To record payment for utilities.

k.) SSS Premium Expense 7,200

Cash 7,200
To record payment for SSS Premium Payable.

l.) Withholding Tax Expense 14,400

Cash 14,400
To record payment for withholding tax.

m.) Rent Expense 150,000

Cash 150,000
To record payment for rent in business land and building.

n.) Delivery Equipment 100,000

Cash 100,000
To record down payment for purchase of delivery van.

o.) Accounts Receivable 1,000,000

Sales 1,000,000
To record sales on account.

p.) Purchases 725,000

Accounts Payable 725,000
To record purchases on account.

q.) Delivery Equipment 400,000

Notes Payable 400,000
To record purchase of delivery
equipment (promissory note).
 Sanamaram Ahk Company
Unadjusted Trial Balance
December 31,2020

Dr. Cr.

Cash 209,900
Accounts Receivable 200,000
Delivery Equipment 500,000
Accounts Payable 225,000
Notes Payable 400,000
Sanamaram Ahk, Capital 100,000
Rent Income 60,000
Sales 1,500,000
Purchases 1,125,000
Taxes and Licenses Expense 5,000
Store Supplies Expense 1,500
Salaries Expense 54,000
Utilities Expense 18,000
SSS Premium Expense 7,200
Withholding Tax Expense 14,400
Rent Expense 150,000

2,285,000 2,285,000
 ADJUSTING ENTRIES

1.) Uncollectible Accounts 1,000

Estimated Uncollectible Accounts 1,000
To set-up provision for uncollectible accounts.

2.) Depreciation Expense 11,250

Accumulated Depreciation – Delivery Equipment 11,250
To take up depreciation expense.

3.) Rent Income 15,000

Unearned Rent Income 15,000
To record the unearned portion of the income.

4.) Salaries Expense 900

Accrued Salaries Expense 900
To record the salaries payable.

5.) Prepaid Rent 25,000

Rent Expense 25,000
To record the unexpired portion of rent.

6.)
a.) Merchandise Inventory, End 15,000
Income and Expense Summary 15,000
To record the ending inventory.

b.) Store Supplies 1,000

Store Supplies Expense 1,000
To record the unused portion of store supplies.
 CLOSING ENTRIES

Particulars Dr. Cr.

Sales 1,500,000
Income and Expense Summary 1,500,000
To close sales.

Merchandise Inventory, End. 15,000

Income and Expense Summary 1,110,000
Purchases 1,125,000
To close cost of sales and establish
the merchandise inventory at the end.

Income and Expense Summary 237,250

Taxes and Licenses 5,000
Store Supplies Expense 500
Salaries Expense 54,900
Utilities Expense 18,000
SSS Premium Expense 7,200
Withholding Tax Expense 14,400
Rent Expense 125,000
Uncollectible Account Expense 1,000
Depreciation Expense 11,250
To close expense accounts to
Income and Expense Summary account.

Rent Income 45,000

Income and Expense Summary 45,000
To close rent income to
Income and Expense Summary account.

Income and Expense Summary 197,750

Sanamaram Ahk, Capital 197,750
To close profit to capital.
 Sanamaram Ahk Company
Post-Closing Trial Balance
December 31, 2020

Dr Cr

Cash 209,900
Accounts Receivable 200,000
Estimated Uncollectible Accounts 1,000
Merchandise Inventory, Dec.31 15,000
Prepaid Rent 25,000
Store Supplies 1,000
Delivery Equipment 500,000
Accumulated Depreciation – Delivery Equipment 11,250
Accounts Payable 225,000
Notes Payable 400,000
Unearned Rent Income 15,000
Accrued Salaries Expense 900
Sanamaram Ahk, Capital 297,750
950,900 950,900
 Sanamaram Ahk Company
Balance Sheet
As of December 31, 2020

Assets
Current Assets:
Cash P209,900
Accounts Receivable 200,000
Estimated Uncollectible Accounts (1,000) 199,000
Merchandise Inventory, End 15,000
Store Supplies 1,000
Prepaid Rent 25,000
Total Current Assets 449,900

Non-Current Assets:
Property and Equipment
Delivery Equipment 500,000
Accumulated Depreciation – (11,250) 488,750
Delivery Equipment
Total Property and Equipment 488,750

Total Assets P938,650

Liabilities and Owner’s Equity

Liability

Current Liabilities:
Accounts Payable P225,000
Notes Payable 400,000
Unearned Rent Income 15,000
Accrued Salaries Expense 900
Total Current Liabilities 640,900

Owner’s Equity

Sanamaram Ahk, Capital P297,750

Total Liabilities and Owner’s Equity P938,650

 Sanamaram Ahk Company
Income Statement
For the year ended December 31, 2020

Net Sales
Gross Sales P1,500,000
Net Sales P1,500,000
Cost of Goods Sold
Merchandise Inventory, beg. 0
Purchases 1,125,000
Cost of Goods Available for sale 1,125,000
Merchandise Inventory, end. (15,000)
Cost of Goods Sold 1,110,000
Gross Profit P390,000
Other Income
Rent Income 45,000

Operating Expenses
Selling Expenses
Store Supplies 500 500
General and Administrative
Taxes and Licenses 5,000
Salaries Expense 54,900
Utilities Expense 18,000
SSS Premium Expense 7,200
Withholding Tax Expense 14,400
Rent Expense 125,000
Uncollectible Account Expense 1,000
Depreciation Expense 11,250 236,750 (237,250)

Profit P197,750