UTANA, SALVIE ANGELA CLARETTE P.

BABA 1-H

Christine Sousa Bags

Worksheet
For the Year Ended December 31, 2019

Trial Balance Adjustments Income Statement Balance Sheet

Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash PHP 72,000 PHP 72,000
Accounts Receivable 136,000 136,000
Merchandise Inventory 598,000 PHP 598,000 PHP 723,000 723,000
Prepaid Advertising 75,000 PHP 25,000 50,000
Office Supplies 42,000 25,000 25,000
Land 400,000 400,000
Office Building 1,600,000 1,600,000
Accu. Depreciation-Off. Bldg. PHP 100,000 15,000 PHP 115,000
Office Equipment 570,000 570,000
Accu. Depreciation-Off. Equipt. 150,000 20,000 170,000
Accounts Payable 74,000 74,000
Mortgage Payable 1,100,000 1,100,000
Notes Payable due in 2 yrs. 200,000 200,000
Salaries Payable 21,000 21,000
Sousa, Capital 1,510,000 1,510,000
Sousa, Withdrawals 200,000 200,000
Sales 4,600,000 4,600,000
Sales Discounts 161,000 161,000
Sales Returns and Allow. 187,000 187,000
Purchases 2,643,000 2,643,000
Transportation In 72,000 72,000
Purchases Discounts 172,000 172,000
Purchases Rets. & Allow. 133,000 133,000
Depreciation Expense-Equipment 20,000 20,000
Depreciation Expense-Building 15,000 15,000
Advertising Expense 25,000 25,000
Insurance Expense 25,000 25,000
Interest Expense 208,000 208,000
Salaries Expense 862,000 21,000 883,000
Travel Expense 188,000 188,000
Office Supplies Expense 17,000 17,000
Interest Expense
PHP 8,039,000 PHP 8,039,000 PHP 98,000 PHP 106,000 5,042,000 5,628,000 3,776,000 3,190,000
Profit 586,000 586,000
PHP 5,628,000 PHP 5,628,000 PHP 3,776,000 PHP 3,776,000
UTANA, SALVIE ANGELA CLARETTE P. BABA 1-H

Christine Sousa Bags Christine Sousa Bags

Statement of Income Statement of Financial Position
For the Year Ended December 31, 2019 December 31, 2019.

Net Sales Assets

Gross Sales PHP 4,600,000.00 Current Assets
Less: Sales Returns and Allow. PHP 187,000.00 Cash PHP 72,000.00
Sales Discounts 161,000 348,000 Accounts Receivable 136,000
Net Sales 4,252,000 Merchandise Inventory 723,000
Cost of Sales Office Supplies 25,000
Merchandise Inventory, 1/1/2019 598,000 Prepaid Advertising 50,000
Purchases 2,643,000 Total Current Assets PHP 1,006,000.00
Less: Purchases Returns and Allow. 133,000 Property and Equipment (net)
Purchases Discounts 172,000 Land 400,000
Net Purchases 2,338,000 Office Building 570,000
Tranportation In 72,000 Less: Accu. Depreciation-Off. Bldg. 170,000
Net Cost of Purchases 2,410,000 Office Equipment 1,600,000
Goods Available for Sale 3,008,000 Less: Accu. Depreciation-Off. Equipt. 115,000

Less: Merchandise Inventory, 12/31 723,000 Total Property and Equipment 2,285,000

Cost of Sales 2,285,000 Total Assets PHP 3,291,000

Gross Profit 1,967,000
Operating Expenses Liabilities
Depreciation Expense-Equipment 20,000 Current Liabilities
Depreciation Expense-Building 15,000 Accounts Payable 74,000
Advertising Expense 25,000 Total Current Liabilities 21,000 95,000
Insurance Expense 25,000 Non-Current Liabilities
Salaries Expense 883,000 Notes Payable due in 2 yrs. 200,000
Travel Expense 188,000 Mortgage Payable 1,100,000 1,300,000
Office Supplies Expense 17,000 Total Liabilities 1,395,000
Operating Expenses 1,173,000
Operating Profit 794,000 Owner's Equity
Finance Costs 208,000 Sousa, Capital, 12/31 1,896,000
Profit PHP 586,000 Total Liabilities and Owner's Equity PHP 3,291,000

Christine Sousa Bags

Statement of Changes in Owner's Equity
For the Year Ended December 31, 2019

Sousa, Capital, Beg. PHP 1,510,000.00

Add: Profit 586,000
Total 2,096,000
Less: Withdrawals 200,000
Sousa, Owner's Equity PHP 1,896,000
UTANA, SALVIE ANGELA CLARETTE P. BABA 1-H

Adjusting Entries

Office Supplies Expense PHP 17,000

Office Supplies PHP 17,000

Advertising Expense 25,000

Prepaid Advertising 25,000

Salaries Expense 21,000

Salaries Payable 21,000

Depreciation Expense-Building 15,000

Depreciation Expense-Equipment 20,000
Accumulated Depreciation Expense-
Building 15,000
Accumulated Depreciation Expense-
Equipment 20,000

Closing Entries

Dec. 31 Mechandise Inventory, Dec. 31 723,000

Sales 4,600,000
Purchases Returns & Allow. 133,000
Purchases Discounts 172,000
Income Summary 5,628,000

31 Income Summary 5,042,000

Merchandise Inventory, 1/1 598,000
Sales Returns & Allow. 187,000
Sales Discounts 161,000
Purchases 2,643,000
Tranportation In 72,000
Salaries Expense 883,000
Office Supplies Expense 17,000
Insurance Expense 25,000
Depreciation Expense-Office
Building 15,000
Depreciation Expense-Office
Equipment 20,000
Travel Expense 188,000
Advetsing Expense 25,000
Interest Expense 208,000

31 Income Summary 586,000

Sousa, Capital 586,000

31 Sousa, Capital 200,000

Sousa, Withdrawals 200,000
UTANA, SALVIE ANGELA CLARETTE P. BABA 1 H

Problem #3

Net Sales
Gross Sales PHP 1,610,000
Less: Sales Returns and Allow. PHP 45,000
Sales Discounts 15,000 60,000
Net Sales PHP 1,550,000
Cost of Sales
Inventory, 1/1/2019 220,000
Purchases 985,000
Less: Purchases Returns and Allow. PHP 31,000
Purchases Discounts 20,000 51,000
Net Purchases 934,000
Tranportation In 36,000
Net Cost of Purchases 970,000
Goods Available for Sale 1,190,000
Less: Inventory, 12/31/2019 260,000
Cost of Good Sold 930,000
Gross Margin from Sales 620,000
Operating Expenses 465,000
Profit PHP 155,000

Problem #8
Victoriano Navarette Traders
Income Statement
For the Year Ended December 31, 2019

Net Sales
Gross Sales PHP 9,630,000
Less: Sales Returns and Allow. PHP 280,000
Sales Discounts 210,000 490,000
Net Sales PHP 9,140,000
Cost of Sales
Merchandise Inventory, 1/1/2019 2,170,000
Purchases PHP 4,720,000
Less: Purchases Returns and Allow. PHP 110,000
Purchases Discounts 70,000 180,000
Net Purchases 4,540,000
Tranportation In 50,000
Net Cost of Purchases 4,590,000
Goods Available for Sale 6,760,000
Less: Merchandise Inventory, 12/31/2019 1,430,000
Cost of Sales 5,330,000
Gross Profit PHP 3,810,000
Operating Expenses
Selling Expense
Salaries Expense-Selling 1,140,000
Transportation Out 170,000
Depreciation-Store Equipment 160,000
Selling Supllies Expense 80,000
Total Selling Expense 1,550,000
Administrative Selling
Salaries Expense-General 920,000
Office Supplies Expense 460,000
Insurance Expense 55,000
Depreciation-Office Equipment 320,000
Miscellaneous Expenses 30,000
Total Administrative Expenses 1,785,000
Total Operating Expenses 3,335,000
Profit PHP 475,000