The following trial balance was taken from the ledger of Goodwill Company at the end of

the yearly accounting period.

Goodwill Company
Trial Balance
December 31, 2021

Debit Credit
Cash 7,525
Accounts Receivable 10,780
Merchandise Inventory 30,950
Store Supplies 3,411
Prepaid Insurance 3,100
Store Equipment 38,700
Accumulated Depreciation-Store Equipment 17,100
Accounts Payable 13,800
A. Fajardo, Capital 44,644
A. Fajardo, Drawing 13,500
Sales 103,750
Sales Returns and Allowances 2,487
Sales Discount 1,500
Purchases 63,200
Purchases Returns and Allowances 21,155
Purchase Discount 2,856
Freight In 3,761
Sales Salaries Expense 12,000
Other Selling Expenses 4,114
Rent Expense 5,100
Miscellaneous General Expenses 3,177

203,305 203,305

Required: 1) Prepare an eight-column worksheet.

2) Use the following data for adjustments:
a) Ending merchandise inventory, P 34,727.
b) Ending store supplies inventory, P 1,804.
c) Prepaid Insurance, P 1,700.
d) Estimated depreciation on tore equipment, P 5,800.
e) Sales salaries payable, P 1,580
f) 5% of outstanding accounts receivable is doubtful of
collection.

3) Prepare financial statements:

a) Income Statement
b) Statement of Capital
c) Balance Sheet
4) Journalize the adjusting entries.

5) Journalize the closing entries.

6) Prepare a post-closing trial balance.