ERLINDA SEECHUA

COMPANY
STATEMENT OF COMPREHENSIVE INCOME
For the year ended December 31, 2009

STATEMENT OF CHANGES IN OWNER’S EQUITY

For the year ended December 31, 2009

STATEMENT OF FINANCIAL POSITION

As of December 31, 2009
 ADJUSTING JOURNAL ENTRIES
A.
Office Supplies Expense 17,000.00

Office Supplies 17,000.00

B.
Advertising Expense 25,000.00

Prepaid Advertising 25,000.00

 ADJUSTING JOURNAL ENTRIES
C.
Salaries Expense 21,000.00

Salaries Payable 21,000.00

D1.
Depreciation Expense-Office Building 15,000.00

Accumulated Depreciation-Office Building 15,000.00

D2.
Depreciation Expense-Office Equipment 20,000.00

Accumulated Depreciation-Office Eqt. 20,000.00

 GENERAL LEDGER
OFFICE SUPPLIES EXPENSE
DEBIT CREDIT
a. 17,000.00
17,000.00

OFFICE SUPPLIES
DEBIT CREDIT
42,000.00
a. 17,000.00
25,000.00
 GENERAL LEDGER
ADVERTISING EXPENSE
DEBIT CREDIT
b. 25,000.00
25,000.00

PREPAID ADVERTISING
DEBIT CREDIT
75,000.00
b. 25,000.00
50,000.00
 GENERAL LEDGER
SALARIES EXPENSE
DEBIT CREDIT
c. 21,000.00
21,000.00

SALARIES PAYABLE
DEBIT CREDIT
c. 21,000.00
21,000.00
 GENERAL LEDGER
DEPRECIATION EXPENSE –
OFFICE BUILDING
DEBIT CREDIT
d1. 15,000.00
15,000.00

ACCUMULATED DEPN. –
OFFICE BUILDING
DEBIT CREDIT
100,000.00
d1. 15,000.00
115,000.00
 GENERAL LEDGER
DEPRECIATION EXPENSE –
OFFICE EQUIPMENT
DEBIT CREDIT
d2. 20,000.00
20,000.00

ACCUMULATED DEPRECIATION. –
OFFICE EQUIPMENT
DEBIT CREDIT
150,000.00
d2. 20,000.00
170,000.00
 ERLINDA SEECHUA COMPANY
STATEMENT OF COMPREHENSIVE
INCOME
For the year ended December 31, 2009
SALES

SALES 4,600,000.00
Less: SALES RET. & ALL. 187,000.00
SALES DISCOUNTS 161,000.00 (348,000.00)
NET SALES 4,252,000.00
 ERLINDA SEECHUA COMPANY
STATEMENT OF COMPREHENSIVE
INCOME
For the year ended December 31, 2009
COST OF GOODS SOLD

BEGINNING INVENTORY 598,000.00

Add: PURCHASES 2,643,000.00
Add: Transportation In 72,000.00
Less: PUR. RET. & ALL. (133,000.00)
PUR. DISCOUNTS (172,000.00) 2,410,000.00
COST OF GOODS AVAILABLE FOR SALE
3,008,000.00
Less: ENDING INVENTORY (723,000.00)
COST OF GOODS SOLD 2,285,000.00
 ERLINDA SEECHUA COMPANY
STATEMENT OF COMPREHENSIVE
INCOME
For the year ended December 31, 2009
OPERATING EXPENSES

INSURANCE EXPENSE 25,000.00

INTEREST EXPENSE 208,000.00
SALARIES EXPENSE (c) 883,000.00
TRAVEL EXPENSE 188,000.00
OFFICE SUPPLIES EXPENSE (a) 17,000.00
ADVERTISING EXPENSE (b) 25,000.00
DEPRECIATION EXPENSE-OFF. BLDG. 15,000.00
DEPRECIATION EXPENSE-OFF. EQT. 20,000.00
TOTAL OPERATING EXPENSES
1,381,000.00
 ERLINDA SEECHUA COMPANY
STATEMENT OF COMPREHENSIVE
INCOME
For the year ended December 31, 2009
NET SALES 4,252,000.00

LESS: COST OF GOODS SOLD (2,285,000.00)

GROSS PROFIT 1,967,000.00

LESS: TOTAL OPERATING EXPENSES

(1,381,000.00)

NET INCOME BEFORE TAX 586,000.00

 ERLINDA SEECHUA COMPANY
STATEMENT OF CHANGES IN OWNER’S
EQUITY
For the year ended December 31, 2009
SEECHUA, CAPITAL (Beginning) 1,510,000.00

LESS: SEECHUA, WITHDRAWALS (200,000.00)

TOTAL 1,310,000.00

ADD: NET INCOME 586,000.00

SEECHUA, CAPITAL (Ending) 1,896,000.00

 ERLINDA SEECHUA COMPANY
STATEMENT OF FINANCIAL POSITION
As of December 31, 2009

ASSETS LIABILITIES & CAPITAL

Cash 72,000.00 Accts. Pay. 74,000.00
Accts. Rec. 136,000.00 Salaries Pay. 21,000.00
Mer. Invty. 723,000.00 Notes Payable 200,000.00
Prep. Adv. 50,000.00 Mortgage Pay. 1,100,000.00
Off. Supplies 25,000.00 TOTAL LIABILITIES 1,395,000.00
Off. Bldg. (net) 1,485,000.00
Off. Eqt. (net) 400,000.00
Land 400,000.00 Seechua, Cap. 1,896,000.00
TOTAL ASSETS 3,291,000.00 TOTAL L. & C. 3,291,000.00
 ANY
QUESTIONS?