Joseph Landscaping and Plant Store

Trial Balance
November 30, 2023

Account Title Debit Credit

Cash in Bank P 95,000
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 95,000
Allowance for Doubtful Accounts 7,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 10,500
Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building P 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 842,950
Joseph de Jesus, Drawing 10,000
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and Allowances 12,500
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and Allowances 14,700
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700 P 2,197,700
Assume the value of:
Merchandise Inventory, November 30 14,500
 Date Account Titles and Explanation P/R Debit Credit
Dec. 1 Note Receivable, Argem Day Care Center 105 20,000
Sales 502 20,000
Sold merchandise to Argem Day Care Center for P20,000 and received a 3-month, 12% note

2 Purchases 601 25,000

Cash in Bank 101 10,000
Accounts Payable, Stephen Trading 301 15,000
Purchased merchandise from Stephen Trading (P25,000). P10,000 DP, balance 2/10 n/30

2 Freight In 602 800

Cash in Bank 101 800
FOB SP Collect 800

3 Cash in Bank 101 15,000

Accounts Receivable, Guadalupe's Garden 104 15,000
Service Income 501 30,000
50% DP on account

4 Cash in Bank 101 20,000

Accounts Receivable, Emmanuel Merchandising 104 50,000
Sales 502 70,000
2/10, 1/15, n/30

4 Freight Out 610 1,200

Cash in Bank 101 1,200
FOB DP Prepaid

5 Accounts Payable, Stephen Trading 301 500

Purchase Returns & Allowances 601-B 500
Debit memo

6 Purchases 107 20,000

Joseph de Jesus, Capital 401 20,000

7 Sales Return & Allowances 502-B 1,000

Accounts Receivable, Emmanuel Merchandising 104 1,000
 Credit memo

8 Cash in Bank 101 50,000

Sales 502 50,000
Sold Merchandise to Rafael Novelty Shop COD

9 Accounts Payable, Stephen Trading 301 5,000

Cash in Bank 101 5,000
Partial payment

10 Store Supplies 109 5,000

Office Supplies 108 10,000
Cash in Bank 101 5,000
Accounts Payable, Gabriel Supermart 301 10,000
Terms 2/10, n/30

12 Accounts Payable, Stephen Trading 301 9,500

Cash in Bank 101 9,210
Purchase Discount (2/10) 601-A 290
Paid Stephen Trading in full

15 Joseph de Jesus, Drawing 401-A 8,000

Purchases 107 8,000
Withdrawal by Joseph de Jesus

17 Accounts Payable, Gabriel Supermart 301 500

Store Supplies 109 500
Returned store supplies to Gabriel Supermart

19 Cash in Bank 101 48,510

Sales Discount (1% of 49,000) 502-A 490
Accounts Receivable, Emmanuel Merchandising 104 49,000

20 Accounts Payable, Gabriel Supermart 301 9,500

Store Supplies 101 59
Office Supplies 109 131
Cash in Bank 108 9,310
Paid full account (2% discount)
26 Sales Returns & Allowances 502-B 1,000
Cash in Bank 101 1,000
Defective merchandise returned

28 Accounts Receivable, Shalom House of Prayer 104 50,000

Service Income 501 50,000
Rendered landscaping service

31 Cash in Bank 101 15,000

Accounts Receivable, Guadalupe's Garden 104 15,000
Collected account
 Cash Joseph de Jesus, Capital Purchases
95,000 10,000 2-Dec 842,950 325,000 8,000 15-Dec
3-Dec 15,000 800 2-Dec 20,000 6-Dec 2-Dec 25,000
4-Dec 20,000 1,200 4-Dec 6-Dec 20,000
8-Dec 50,000 5,000 9-Dec 370,000 8,000
19-Dec 48,510 5,000 10-Dec 862,950 362,000
31-Dec 15,000 9,210 12-Dec
9,310 20-Dec
1,000 26-Dec Joseph de Jesus, Drawing
10,000 Freigh in
243,510 41,520 15-Dec 8,000 6,850
201,990 18,000 2-Dec 800
7,650
Sales
Notes Receivable 776,850 Freight out
1-Dec 20,000 20,000 1-Dec 9,500
70,000 4-Dec 4-Dec 1,200
20,000 50,000 8-Dec 10,700
916,850

Accounts Receivable Sales Returns and Allowances Purchase Returns and Allowances
95,000 1,000 7-Dec 12,500 14,700
3-Dec 15,000 49,000 19-Dec 7-Dec 1,000 500 5-Dec
4-Dec 50,000 15,000 31-Dec 26-Dec 1,000 15,200
28-Dec 50,000 14,500

210,000 65,000 Sales Discount Purchase Discount

145,000 15,000 10,000
19-Dec 490 290 12-Dec
15,490 10,290
Office Supplies on Hand
 10,500
131 20-Dec
10-Dec 10,000 Service Income
20,500 131 140,000
20,369 30,000 3-Dec
50,000 28-Dec
220,000
Store Supplies on Hand
15,000
500 17-Dec
10-Dec 5000 59 20-Dec
20,000 559
19,441

Accounts Payable
5-Dec 500 37,000
9-Dec 5,000 15,000 2-Dec
12-Dec 9,500 10,000 10-Dec
17-Dec 500
20-Dec 9,500

25,000 62,000
37,000
 Joseph Landscaping and Plant Store
Trial Balance
November 30, 2023

Account Title Debit Credit

Cash in Bank P 201,990
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 95,000
Allowance for Doubtful Accounts 7,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 10,500
Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building P 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 842,950
Joseph de Jesus, Drawing 10,000
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and Allowances 12,500
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and Allowances 14,700
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense
16,750
SSS, Philhealth, and Pag-ibig Expense 11550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,304,690 P 2,197,700

Assume the value of:

Merchandise Inventory, November 30 14,500
 Joseph Landscaping And Plant Store
Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank ₱201,990
Petty Cash Fund 10,000
Investments in Trading Securities 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts ₱7,000
Notes Receivable 20,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 20,369
Store Supplies on Hand 19,441
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Totals ₱2,438,490 ₱2,438,490
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Unadjusted Adjusted
Trial balance Adjustments Trial balance
Account Title Debit Credit Debit Credit Debit
Cash in Bank ₱201,990 ₱201,990
Petty Cash Fund 10,000 10,000
Investments in Trading Securities 100,000 100,000
Accounts Receivable 145,000 145,000
Allowance for Doubtful Accounts ₱7,000 4,600
Notes Receivable 20,000 20,000
Interest Receivable 200 200
Merchandise Inventory, January 1 17,800 17,800
Office Supplies on Hand 20,369 14,080 6,289
Store Supplies on Hand 19,441 14,500 4,941
Land 400,000 400,000
Buildings 440,000 440,000
Accumulated Depreciation-Building 57,600 28,800
Equipment 220,000 220,000
Accumulated Depreciation-Equipment 50,000 25,000
Furniture and Fixture 120,000 120,000
Accumulated Depreciation – Furniture 44,000 22,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490 15,490
Sales Returns and Allowances 14,500 14,500
Interest Income 200
Purchases 362,000 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650 7,650
Freight out 10,700 10,700
Salaries and Wages Expense 194,000 194,000
Depreciation Expense 75,800 75,800
Utilities Expense 26,000 7,200 33,200
Insurance Expense 28,450 28,450
Office Supplies Expense 14,080 14,080
Store Supplies Expense 14,500 14,500
Repairs and Maintenance Expense 16,750 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550 11,550
Doubtful Accounts Expense 4,600 4,600
Miscellaneous Expense 12,400 12,400
Interest Expense 6,400 330 6,730

Total 2,438,490 2,438,490 116,710 116,710 2,526,620

Profit
Total
ant Store
ce

Adjusted Income Statement of

Trial balance Statement Financial Position
Credit Debit Credit Debit Credit
₱201,990
10,000
100,000
145,000
₱11,600 ₱11,600
20,000
200
17,800 12,850 12,850
6,289
4,941
400,000
440,000
86,400 86,400
220,000
75,000 75,000
120,000
66,000 66,000
37,000 37,000
12,000 12,000
5,600 5,600
7,200 7,200
330 330
200,000 200,000
862,950 862,950
18,000
220,000 220,000
916,850 916,850
15,490
14,500
200 200
362,000
10,290 10,290
15,200 15,200
 7,650
10,700
194,000
75,800
33,200
28,450
14,080
14,500
16,750
11,550
4,600
12,400
6,730

2,526,620 840,200 1,175,390 1,699,270 1,364,080

335,190 335,190
1,175,390 1,175,390 1,699,270 1,699,270
 ADJUSTING ENTRIES
(a) Interest Receivable 106 200
Interest Income 503 200

(b) Utilities Expense 613 7,200

Utilities Payable 304 7,200

(c) Interest Expense 630 330

Interest Payable 305 330

(d) Store Supplies Expense 616 14,500

Office Supplies Expense 615 14,080
Store Supplies 109 14,500
Office Supplies 108 14,080

(e) Doubtful Accounts Expense 619 4,600

Allowance for Doubtful Accounts 104-A 4,600

(f) Depreciation Expense 612 75,800

Accumulated Depreciation - Building 202-A 28,800
Accumulated Depreciation - Equipment 203-A 25,000
Accumulated Depreciation - Furniture 204-A 22,000

(g) Merchandise Inventory, December 31 107 12,850

Income Summary 12,850
 Posting to T-Accounts

Interest Receivable Interest Income

200 200

Utilities Payable Utilities Expense

7,200 7,200

Interest Payable Interest Expense

330 330

Office Supplies on Hand Office Supplies Expense

10,500 131 14,080
10,000 14,080
20,500 14,211
6,289

Store Supplies on Hand Store Supplies Expense

15,000 500 14,500
5,000 59
14,500
20,000 15,059
4,941

Allowance for Doubtful Accounts Doubtful Accounts Expense

7,000 4,600
4,600
11,600

Depreciation Expense
Accumulated Depreciation - Building 75,800
57,600
28,800
86,400

Accumulated Depreciation - Equipment

Accumulated Depreciation - Furniture
50,000 44,000
25,000 22,000
75,000 66,000
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Account Title Debit Credit
Cash in Bank ₱201,990
Petty Cash Fund 10,000
Financial Assets at Fair Value Through Profit or Lo 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts ₱11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 86,400
Equipment 220,000
Accumulated Depreciation-Equipment 75,000
Furniture and Fixture 120,000
Accumulated Depreciation-Furniture 66,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Interest Income 200
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Store Supplies Expense 14,500
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellaneous Expense 12,400
Interest Expense 6,730
Total 2,526,620 2,526,620
 Joseph Landscaping and Plant Store
Statement of Financial Position
December 31, 2023
ASSETS
Current Assets Note
Cash 5 211,990
Financial Assets at Fair Value through Profit or Loss 100,000
Trade and other receivables 6 153,600
Merchandise Inventory 12,850
Prepaid Expenses 7 11,230 489,670

Non-Current Assets
Property, Plant, and Equipment 8 952,600
Total Assets 1,442,270

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and other payables 9 62,130
Non-Current Liabilities
Mortgage Payable 200,000
Total Liabilities 262,130

Owner's Equity
Joseph de Jesus, Capital 1,180,140
Total Liabilities and Owner's Equity 1,442,270
 Notes to the Financial Statement
Note 5: Cash
Cash in Bank 201,990
Petty Cash Fund 10,000
Total Cash 211,990

Note 6: Trade and other receivables

Accounts Receivable 145,000
Less: Allowance for Doubtful Accounts 11,600 133,400
Notes Receivable 20,000
Interest Receivable 200
Total trade and other receivables 153,600

Note 7: Prepaid Expenses

Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Total Prepaid Expenses 11,230

Note 8: Property, Plant and Equipment

Land 400,000
Buildings 440,000
Less: Accumulated Depreciation 86,400 353,600
Equipment 220,000
Less: Accumulated Depreciation 75,000 145,000
Furniture & Fixtures 120,000
Less: Accumulated Depreciation 66,000 54,000
Total Property, Plant, and Equipment 952,600

Note 9: Trade and other payables

Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Total trade and other payables 62,130
 Joseph Landscaping and Plant Store
Income Statement
For the year ended December 31, 2023

Note
Net Sales 1 1,106,860
Cost of sales 2 349,110
Gross Profit P 757,750
Other Income 200
Total Income P 757,950
Operating Expenses
Administrative Expenses P 3 P 390,830
Distribution Expenses 4 25,200
Interest Expense 6,730 422,760
Net Income P 335,190

Joseph Landscaping and Plant Store

Statement of Changes in Owner's Equity
For the year ended December 31, 2023

Joseph de Jesus, Capital 862,950

Add: Net Income 335,190
Sub-total P 1,198,140
Less: Joseph de Jesus, Drawing 18,000
Joseph de Jesus, Capital, December 31 P 1,180,140
Note 1: Net Sales Revenue and Service Income
Service Income P 220,000
Sales Income P 916,850
Less: Sales Returns & Allowances 14,500
Less: Sales Discounts 15,490 886,860
Net Sales P 1,106,860

Note 2: Cost of sales

Merchandise Inventory, January 1 P 17,800
Add: Net cost of purchases
Purchases P 362,000
Less: Purchase Returns & Allowances 15,200
Less: Purchase Discounts 10,290
Net Purchases P 336,510
Add: Freight in 7,650 344,160
Cost of goods available for sale P 361,960
Less: Merchandise Inventory, December 31 12,850
Cost of sales P 349,110

Note 3: Administrative expenses

Salaries and Wages Expense P 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellaneous Expense 12,400
Total administrative expenses P 390,830

Note 4: Distribution expenses

Freight out P 10,700
Store supplies expense 14,500
Total distribution expenses P 25,200
 Joseph Landscaping and Plants Store
Statement of Cash Flows
For the year ended December 31, 2023
Cash flows from operating activities
Inflow
Cash sales 518,895
Cash from landscaping services 170,000
Collections on accounts receivable 172,965 861,860

Outflow
Payment on account purchases 336,510
Payment for various operating expenses 336,080
Payment of interest 6,400 678,990

Net cash from operating activities 182,870

Cash flows from financing activities
Outflow
Partial payment of bank loan (mortgage payable) 100,000
Net increase in Cash in Bank 82,870
Cash in Bank, January 1 119,120
Cash in Bank, December 31 201,990
 Recall that Merchandise Inventory, December 31 was recorded as part of the adjusting entry shown as follows:
Dec. 31 Merchandise Inventory, December 31 12,850
Income Summary 12,850
To record adjustment for ending balance of inventory. Income Summary
840,200 12,850
The following closing entries used the INDIRECT METHOD. 1,162,540
840,200 1,175,390
Dec. 31 Service Income 220,000 335,190
Sales 916,850
Interest Income 200 Joseph de Jesus, Drawing
Purchase Discounts 10,290 18,000 335,190
Purchase Returns & Allowances 15,200 317,190
Income Summary 1,162,540 0
Close all nominal accounts with CREDIT balances.

Dec. 31 Income Summary 840,200 Joseph de Jesus, Capital

Sales Discounts 15,490 862,950
Sales Returns & Allowances 14,500 317,190
Purchases 362,000 1,180,140
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Store Supplies Expense 14,500
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellaneous Expense 12,400
Interest Expense 6,730
Merchandise Inventory, January 1 17,800
Close all nominal accounts with DEBIT balances.

Dec. 31 Income Summary 335,190

Joseph de Jesus, Drawing 335,190
Close Income Summary account to drawing account.
Joseph de Jesus, Drawing 317,190
Joseph de Jesus, Capital 317,190
Close Drawing account to Capital account.
 Joseph Landscaping And Plant Store
Post-Closing Trial Balance
December 31, 2023
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Financial Assets at Fair Value Through Profit or Los 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory 12,850
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 86,400
Equipment 220,000
Accumulated Depreciation-Equipment 75,000
Furniture and Fixture 120,000
Accumulated Depreciation-Furniture 66,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Mortgage Payable 200,000
Joseph de Jesus, Capital 1,180,140
Total 1,681,270 1,681,270
 REVERSING ENTRIES
January 1, 2020
(a) Interest Income 200
Interest Receivable 200
To reverse accrued income from Argem Day Care

(b) Utilities Payable 7,200

Utilities Expense 7,200
To reverse accrued utilities expense

(c) Interest Payable 330

Interest
To Expense
reverse accrued interest expense to 330
Pio Plants and Ornaments Store