CHART OF ACCOUNTS

A 001 Cash
A 002 Accounts Receivable
A 003 Allowance for Doubtful Accounts
A 004 Notes Receivable
A 005 Interest Receivable
A 006 Merchandize Inventory
A 007 Prepaid Insurance
A 008 Prepaid Rent
A 009 Store Furniture and Fixtures
A 010 Accumulated Depreciation-Store Furniture and Fixtures
A 011 Store Equipment
A 012 Accumulated Depreciation-Store Equipment
A 013 Accounts Payable
A 014 Notes Payable
A 015 Salaries Payable
A 016 Alyanna Danielle, Capital
A 017 Alyanna Danielle, Drawing
A 018 Sales
A 019 Sales Returns and Allowances
A 020 Sales Discounts
A 021 Purchases
A 022 Purchase Returns and Allowances
A 023 Purchase Discounts
A 024 Salaries and Wages
A 025 Rent Expense
A 026 Insurance Expense
A 027 Depreciation - Store Furniture and Fixture
A 028 Depreciaion - Store Equipment
A 029 Doubtful Accounts
A 030 Interest Revenue
A 031 Income and Expense Summary Account
 A 001 A 002

Cash Accounts Receivable

Date TRANSACTIONS f DR CR DR
1 Investment by owner, Alyanna Danielle:
Cash, P40,000; Merchandise, P15,000.
40,000.00

2 Sales for cash during the month P25,000 and 25,000.00 50,000.00
on account P50,000.
3 Purchases for cash P18,000 and on account 18,000.00
P36,000.
4
Collection on accounts are: P12,000 net of
P1,500 discount and P13,800 without 25,800.00
discount.
5
A promissory note of P8,000 was received
on December 16 in settlement of an
outstanding account
6
A fire insurance policy was taken on
December 1 by paying the premium of 3,600.00
P3,600. (expense method is to be used)
7 Rent of P18,000 was paid on December 1. 18,000.00
(asset method is to be used)
8
Store furniture and fixtures were acquired
on December 2 for P24,000 by issuing a
promissory note for the same amount.
9 Store equipment costing P12,000 was 12,000.00
acquired for cash on December 15
10
Payments on accounts are P17,100 net of
discount of P900 and P9,000 without 26,100.00
discount.
11 Merchandise return from cash customers is 800.00
P800 while P1,200 for credit customers.
12
Merchandise returned to suppliers were
P300 on cash purchases and P1,000 for 300.00
credit purchases.
13 Salaries and wages paid, P9,500. 9,500.00
14 Cash drawing by owner, P900. 900.00
Pre-Closing Trial Balance TOTAL 91,100.00 88,900.00 50,000.00
A1 The note receivable is for 30 days at 18%
interest. (refer to #5 transaction)
A2 The fire insurance covers one year period
A3 The rent paid is for six months.
A4 Store furniture and fixtures acquired are
A5 estimated to last five
Store equipment yearshas
acquired withana estimated
salvage
value
usefulestimated at P3,000; the 30 day
A6 Unpaidlife of four
salaries
promissory
years
P800.without
noteisissued
any salvage
is non-interest
value.
A7 5% of outstanding accounts receivable are
A8 estimated to be of doubtful
Unsold merchandise collection.
is P23,400.
After Adjusting Entries TOTAL 91,100.00 88,900.00 50,000.00
CE1 Closing Nominal Accounts
After Post-Closing Trial Balance Total 91,100.00 88,900.00 50,000.00
Ending Balances 2,200.00 13,500.00
Total Assets 100,845.00
Total Liabilities 32,800.00
Total Capital 68,945.00
Total Liabilities and Capital 101,745.00
 A 002 A 003 A 004 A 005 A 006

Allowance for
Accounts Receivable Notes Receivable Interest Receivable Merchandize Inventory
Doubtful Accounts

CR DR CR DR CR DR CR DR CR

15,000.00

27,300.00

8,000.00 8,000.00

1,200.00

36,500.00 - - 8,000.00 - - - 15,000.00 -

720.00

675.00
23,400.00
36,500.00 - 675.00 8,720.00 - - - 38,400.00 -
15,000.00
36,500.00 - 675.00 8,720.00 - - - 38,400.00 15,000.00
675.00 8,720.00 - 23,400.00
 A 007 A 008 A 009 A 010 A 011
Accumulated
Store Furniture and Depreciation-Store
Prepaid Insurance Prepaid Rent Store Equipment
Fixtures Furniture and
Fixtures
DR CR DR CR DR CR DR CR DR

18,000.00

24,000.00

12,000.00

- - 18,000.00 - 24,000.00 - - - 12,000.00

3,300.00
3,000.00
350.00

3,300.00 - 18,000.00 3,000.00 24,000.00 - - 350.00 12,000.00

3,300.00 - 18,000.00 3,000.00 24,000.00 - - 350.00 12,000.00
3,300.00 15,000.00 24,000.00 350.00 12,000.00
 A 011 A 012 A 013 A 014 A 015
Accumulated
Store Equipment Depreciation-Store Accounts Payable Notes Payable Salaries Payable
Equipment
CR DR CR DR CR DR CR DR CR

36,000.00

24,000.00

27,000.00

1,000.00

- - - 28,000.00 36,000.00 - 24,000.00 - -

250.00
800.00

- - 250.00 28,000.00 36,000.00 - 24,000.00 - 800.00

- - 250.00 28,000.00 36,000.00 - 24,000.00 - 800.00
250.00 8,000.00 24,000.00 800.00
 A 016 A 017 A 018 A 019 A 020

Alyanna Danielle, Alyanna Danielle, Sales Returns and

Sales Sales Discounts
Capital Drawing Allowances

DR CR DR CR DR CR DR CR DR

55,000.00

75,000.00

1,500.00

2,000.00

900.00
- 55,000.00 900.00 - - 75,000.00 2,000.00 - 1,500.00

- 55,000.00 900.00 - - 75,000.00 2,000.00 - 1,500.00

13,945.00 900.00 75,000.00 2,000.00
- 68,945.00 900.00 900.00 75,000.00 75,000.00 2,000.00 2,000.00 1,500.00
68,945.00 -
 A 020 A 021 A 022 A 023 A 024

Purchase Returns and

Sales Discounts Purchases Purchase Discounts Salaries and Wages
Allowances

CR DR CR DR CR DR CR DR

54,000.00

900.00

1,300.00

9,500.00

- 54,000.00 - - 1,300.00 - 900.00 9,500.00

800.00

- 54,000.00 - - 1,300.00 - 900.00 10,300.00

1,500.00 54,000.00 1,300.00 900.00
1,500.00 54,000.00 54,000.00 1,300.00 1,300.00 900.00 900.00 10,300.00
 A 024 A 025 A 026 A 027 A 028
Depreciation - Store
Depreciaion - Store
Salaries and Wages Rent Expense Insurance Expense Furniture and
Equipment
Fixture
CR DR CR DR CR DR CR DR CR

3,600.00

- - - 3,600.00 - - - - -

3,300.00
3,000.00
350.00
250.00

- 3,000.00 - 3,600.00 3,300.00 350.00 - 250.00 -

10,300.00 3,000.00 300.00 350.00 250.00
10,300.00 3,000.00 3,000.00 3,600.00 3,600.00 350.00 350.00 250.00 250.00
 A 029 A 030

Doubtful Accounts Interest Revenue

DR CR DR CR

- - - -
720.00

675.00

675.00 - - 720.00
675.00 720.00
675.00 675.00 720.00 720.00
PRE-CLOSING TRIAL BALANCE DR CR
Cash 2,200.00
Accounts Receivable 13,500.00
Allowance for Doubtful Accounts
Notes Receivable 8,000.00
Interest Receivable
Merchandize Inventory 15,000.00
Prepaid Insurance
Prepaid Rent 18,000.00
Store Furniture and Fixtures 24,000.00
Accumulated Depreciation-Store Furniture and Fixtures
Store Equipment 12,000.00
Accumulated Depreciation-Store Equipment
Accounts Payable 8,000.00
Notes Payable 24,000.00
Salaries Payable
Alyanna Danielle, Capital 55,000.00
Alyanna Danielle, Drawing 900.00
Sales 75,000.00
Sales Returns and Allowances 2,000.00
Sales Discounts 1,500.00
Purchases 54,000.00
Purchase Returns and Allowances 1,300.00
Purchase Discounts 900.00
Salaries and Wages 9,500.00
Rent Expense
Insurance Expense 3,600.00
Depreciation - Store Furniture and Fixture
Depreciaion - Store Equipment
Doubtful Accounts
Interest Revenue
TOTAL 164,200.00 164,200.00
POST-CLOSING TRIAL BALANCE DR CR
Cash 2,200.00
Accounts Receivable 13,500.00
Allowance for Doubtful Accounts 675.00
Notes Receivable 8,720.00
Interest Receivable 0.00
Merchandize Inventory 23,400.00
Prepaid Insurance 3,300.00
Prepaid Rent 15,000.00
Store Furniture and Fixtures 24,000.00
Accumulated Depreciation-Store Furniture and Fixtures 350.00
Store Equipment 12,000.00
Accumulated Depreciation-Store Equipment 250.00
Accounts Payable 8,000.00
Notes Payable 24,000.00
Salaries Payable 800.00
Alyanna Danielle, Capital 68,945.00
Alyanna Danielle, Drawing 900.00
TOTAL 103,020.00 103,020.00
INCOME STATEMENT DR CR
Sales 75,000.00
Sales Returns and Allowances 2,000.00
Sales Discounts 1,500.00 -3,500.00
NET SALES 71,500.00
Merchandize Inventory, Beginning 15,000.00
Purchases 54,000.00
Purchase Returns and Allowances - 1,300.00
Purchase Discounts - 900.00
NET PURCHASES 51,800.00
Available Meerchandize Inventory 66,800.00
Less: Merchandize Inventory, Ending - 23,400.00
COST OF SALES 43,400.00 43,400.00
GROSS PROFIT 28,100.00
Salaries and Wages 9,500.00
Rent Expense
Insurance Expense 3,600.00
Depreciation - Store Furniture and Fixture
Depreciaion - Store Equipment
Doubtful Accounts
TOTAL OPERATING EXPENSES 13,100.00 13,100.00
INCOME BEFORE INTERESTS AND TAXES 15,000.00
ADD: Interest Revenue
LESS: INTEREST EXPENSE
INCOME BEFORE TAX 15,000.00
INCOME TAX
NET INCOME 15,000.00

STATEMENT OF CHANGES IN OWNERS EQUITY

Alyanna Danielle Capital, beginning 55,000.00
Add: Net Income 15,000.00
Total 70,000.00
LESS: Drawing -900.00
Alyanna Danielle Capital, ending 69,100.00

BALANCE SHEET
Cash 2,200.00
Accounts Receivable 13,500.00
Allowance for Doubtful Accounts - 675.00
Notes Receivable 8,720.00
Interest Receivable -
Merchandize Inventory 23,400.00
Prepaid Insurance 3,300.00
Prepaid Rent 15,000.00
Store Furniture and Fixtures 24,000.00
Accumulated Depreciation-Store Furniture and Fixtures - 350.00
Store Equipment 12,000.00
Accumulated Depreciation-Store Equipment - 250.00
Accounts Payable 8,000.00
Notes Payable 24,000.00
Salaries Payable 800.00
Alyanna Danielle, Capital 68,945.00
Alyanna Danielle, Drawing 900.00
TOTAL 101,745.00 101,745.00