MERCHANT CENTER

Income Statement
For the year ended, DECEMBER 31, 2018

Net Sales
Sales - 469,440
Sales Returns & Allowances 10,200 -
Sales Discounts 4,440 14,640
Net Sales 454,800
Less:Cost of Sales
Merchandise Inventory Beginning 41,400
Purchases 216,576 -
Less: Purchase Returns & 27,000 -
Allowances
Purchase Discounts 11,040 38,040 -
Net Purchases 178,536
Freight In 24,420 -
Net Cost of Purchases 202,956
Goods Available for Sales 244,356
Less: Merchandise Inventory, end 44,200
Cost of Sales 200,156
Gross Profit 254,644
Less Operating Expenses
: Selling Expenses
Sales Salaries 69,720 -
Advertising Expense 10,000 -
Transportation out 10,740 -
Depreciation Expense-Store Equip. 12,333
Uncollectible Accounts Expense 2,491 105,284 -
Administrative Expenses
Office Salaries 58,512 -
Office Supplies Expense 15,676 -
Insurance Expense 8,000 -
Utilities 35,256 -
Depreciation Expense-Furn/Fix 9,167 126,611 -
Total Operating Expenses 231,895
Operating Profit 22,749
Finance Cost
Interest Income 5,760
Interest Expense 6048 288
Net Profit 22,461
 SALES CENTER
Income Statement
For the year ended, DECEMBER 31, 2018

Net Sales
Sales - 391,200
Sales Returns & Allowances 8,500 -
Sales Discounts 3,700 12,200
Net Sales 379,000
Less:Cost of Sales
Merchandise Inventory Beginning 34,500
Purchases 180,480
Less: Purchase Returns & 22,500
Allowances
Purchase Discounts 9,200 31,700
Net Purchases 148,780
Freight In 20350
Net Cost of Purchases 169,130
Goods Available for Sales 203,630
Less: Merchandise Inventory, end 44,200
Cost of Sales 159,430
Gross Profit 219,570
Less Operating Expenses
: Selling Expenses
Sales Salaries 58,100
Advertising Expense 10,000
Transportation out 8,950
Depreciation Expense-Store Equip. 10,000
Uncollectible Accounts Expense 2,076 89,126
Administrative Expenses
Office Salaries 48,760
Office Supplies Expense 12,000
Insurance Expense 8,000
Utilities 29,380
Depreciation Expense-Furn/Fix 7,500 105,640
Total Operating Expenses 194,766
Operating Profit 24,804
Finance Cost
Interest Income 4,800
Interest Expense 5040 240
Net Profit 24,564
 MERCHANT CENTER
WORKSHET
DECEMBER 31, 2018
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Acct# Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 121,920 - 121,920 121,920
120 Notes Receivable 48,000 - 48,000 48,000
130 Accounts Receivable 83,040 - 83,040 83,040
130A Allowance for Uncollectible Accounts - - 2,491 2,491 2,491
140 Interest Receivable - - 5,760 5,760 5,760
150 Merchandise Inventory 1/1/2018 41,400 - 41,400 41,400 44200 44200
160 Office Supplies 22,056 - 15,676 6,380 6,380
170 Prepaid Insurance - - 11,200 11,200 11,200
180 Prepaid Advertising - - 18,800 18,800 18,800
200 Store Equipments 84,000 - 84,000 84,000
200A Accumulated Dep'n-S. Equip - - 12,333 12,333 12,333
210 Furniture & Fixtures 60,000 - 60,000 60,000
210A Accumulated Dep'n-F/Fix - - 9,167 9,167 9,167
300 Notes Payable - 72,000 72,000 72,000
310 Accounts Payable - 56,400 56,400 56,400
320 Interest Payable - - 6,048 6,048 6,048
400 Sunsol, Capital - 312,000 312,000 312,000
410 Sunsol, Drawing 9,600 - 9,600 - 9,600
500 Sales - 469,440 - 469,440 469,440
500A Sales Returns & Allowances 10,200 - 10,200 - 10,200
500B Sales Discounts 4,440 - 4,440 - 4,440
510 Interest Income - - 5,760 5,760 5,760
600 Purchases 216,576 - 216,576 216,576
600A Purchase Returns & Allowances - 27,000 - 27,000 27,000
600B Purchase Discounts - 11,040 - 11,040 11,040
610 Freight In 24,420 - 24,420 - 24,420
700 Sales Salaries 69,720 - 69,720 - 69,720
710 Advertising Expense 28,800 - 18,800 10,000 10,000
720 Transportation out 10,740 - 10,740 10,740
730 Uncollectible Accounts Expense - - 2,491 2,491 2,491
800 Office Salaries 58,512 - 58,512 58,512
810 Office Supplies Expense - - 15,676 15,676 15,676
820 Insurance Expense 19,200 - 11,200 8,000 8,000
830 Utilities 35,256 - 35,256 35,256
840 Depreciation Expense - - 21,500 21,500 21,500
900 Interest Expense - - 6,048 6,048 6,048
947,880 947,880 81,475 81,475 983,679 983,679 534,979 557,440 492,900 470,439
22,461 22,461
557,440 557,440 492,900 492,900
 SALES CENTER
WORKSHET
DECEMBER 31, 2018
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Acct# Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 101,600 - 101,600 101,600
120 Notes Receivable 40,000 - 40,000 40,000
130 Accounts Receivable 69,200 - 69,200 69,200
130A Allowance for Uncollectible Accounts - - 2,076 2,076 2,076
140 Interest Receivable - - 4,800 4,800 4,800
150 Merchandise Inventory 1/1/2018 34,500 34,500 34,500 44200 44200
160 Office Supplies 18,380 - 12,000 6,380 6,380
170 Prepaid Insurance - - 8,000 8,000 8,000
180 Prepaid Advertising - 14,000 14,000 14,000
200 Store Equipments 70,000 - 70,000 70,000
200A Accumulated Dep'n-S. Equip - - 10,000 10,000 10,000
210 Furniture & Fixtures 50,000 - 50,000 50,000
210A Accumulated Dep'n-F/Fix - - 7,500 7,500 7,500
300 Notes Payable - 60,000 60,000 60,000
310 Accounts Payable - 47,000 47,000 47,000
320 Interest Payable 5,040 5,040 5,040
400 Sunsol, Capital - 260,000 260,000 260,000
410 Sunsol, Drawing 8,000 - 8,000 8,000
500 Sales - 391,200 391,200 391,200
500A Sales Returns & Allowances 8,500 8,500 8,500
500B Sales Discounts 3,700 3,700 3,700
510 Interest Income 4,800 4,800 4,800
600 Purchases 180,480 180,480 180,480
600A Purchase Returns & Allowances 22,500 22,500 22,500
600B Purchase Discounts 9,200 9,200 9,200
610 Freight In 20,350 - 20,350 20,350
700 Sales Salaries 58,100 - 58,100 58,100
710 Advertising Expense 24,000 - 14,000 10,000 10,000
720 Transportation out 8,950 - 8,950 8,950
730 Uncollectible Accounts Expense - 2,076 2,076 2,076
800 Office Salaries 48,760 - 48,760 48,760
810 Office Supplies Expense 12,000 12,000 12,000
820 Insurance Expense 16,000 - 8,000 8,000 8,000
830 Utilities 29,380 - 29,380 29,380
840 Depreciation Expense - - 17,500 17,500 17,500
900 Interest Expense - - 5,040 5,040 5,040
789,900 789,900 63,416 63,416 819,316 819,316 447,336 471,900 416,180 391,616
24,564 24,564
471,900 471,900 416,180 416,180
 ADJUSTING ENTRIES
SET A SET B
a. Uncollectible Accounts 2,076 a Uncollectible Accounts 2,491
Allowance for Uncollectible Accts 2,076 Allowance for Uncollectible Accts 2,491

b Interest Receivable 4,800 b Interest Receivable 5,760

Interest Income 4,800 Interest Income 5,760

c Office Supplies Expense 12,000 c Office Supplies Expense 15,676

Office supplies 12,000 Office supplies 15,676

d Prepaid Insurance 8,000 d Prepaid Insurance 11,200

Insurance Expense 8,000 Insurance Expense 11,200

e Prepaid Advertising 14,000 d Prepaid Advertising 18,800

Advertising Expense 14,000 Advertising Expense 18,800

f Depreciation Expense-Store Equipment 10,000 f Depreciation Expense-Store Equipment 12,333

Accu. Dep'n-Store Equipment 10,000 Accu. Dep'n-Store Equipment 12,333

Depreciation Expense-F/Fix 7,500 Depreciation Expense-F/Fix 9,167

Accu. Dep'n-Furn/Fix 7,500 Accu. Dep'n-Furn/Fix 9,167

g Interest Expense 5,040 g Interest Expense 6,048

Interest Payable 5,040 Interest Payable 6,048