CHART OF ACCOUNTS

ASSETS
101 Cash
201 Accounts Receivables
301 Computer Supplies
401 Prepaid Insurance
402 Prepaid Rent
501 Computer System
502 Office Equipment

LIABILITIES
601 Accounts Payable
701 Wages Payable
801 Unearned Computer Services Revenue

CAPITAL
901 Namikaze Capital
902 Namikaze Withdrawal
951 Computer Services Revenue
981 Repair Expense
982 Advertising Expense
983 Wages Expense
984 Mileage Expense
985 Miscellaneous Expense
986 Rent Expense
987 Computer Supplies Expense
988 Insurance Expense
989 Depreciation Expense - Office Equipment
990 Depreciation Expense - Computer System
991 Accumulated Depreciation - Computer System
992 Accumulated Depreciation - Office Equipment
1001 Income Summary
Cash and Cash Equivalents
Loans and Receivables
Inventories
Other Current Assets
Property, Plant and Equipment
Accounts and Other Payables
Accrued Liabilities
Deferred Liabilities
Owner's Equity
Revenue
Expenses
October 1 Cash 275,000.00
Computer System 100,000.00
Office Equipment 40,000.00
Namikaze Capital 415,000.00
Owner invests cash and equipment

2 Prepaid Rent 16,500.00

Cash 16,500.00
Paid four months' rent in advance

3 Computer Supplies 7,100.00

Accounts Payable 7,100.00
Purchased supplies on credit.

5 Prepaid Insurance 11,100.00

Cash 11,100.00
Paid 12 months' premium in advance.

6 Accounts Receivable 24,000.00

Computer Services Revenue 24,000.00
Billed customer for services.

8 Accounts Payable 7,100.00

Cash 7,100.00
Paid balance due on accounts payable.

10 No entry necessary in the journal.

12 Accounts Receivable 7,000.00

Computer Services Revenue 7,000.00
Billed customer for services.
 15 Cash 24,000.00
Accounts Receivable 24,000.00
Collected accounts receivable.

17 Repair Expense 4,025.00

Cash 4,025.00
Paid for computer repairs.

20 Advertising Expense 9,700.00

Cash 9,700.00
Purchased ads in local newspaper.

22 Cash 7,000.00
Accounts Receivable 7,000.00
Collected accounts receivable.

28 Accounts Receivable 26,040.00

Computer Services Revenue 26,040.00
Billed customer for services.

31 Wages Expense 4,375.00

Cash 4,375.00
Paid employee for part-time work.

Namikaze Withdrawal 18,000.00

Cash 18,000.00
Withdrew cash for personal use

November 1 Mileage Expense 1,600.00

Cash 1,600.00
Reimbursed Namikaze for mileage.

2 Cash 23,165.00
Computer Services Revenue 23,165.00
Collected cash revenue from client.

5 Computer Supplies 5,625.00

Cash 5,625.00
Purchased computer supplies for cash.

8 Accounts Receivable 28,340.00

Computer Services Revenue 28,340.00
Billed customer for services.
 13 No entry necessary.

18 Cash 11,040.00
Accounts Receivable 11,040.00
Collected accounts receivable.

22 Miscellaneous Expense 1,250.00

Cash 1,250.00
Record donation.

24 Accounts Receivable 19,750.00

Computer Services Revenue 19,750.00
Billed customer for services.

25 No entry necessary.

28 Mileage Expense 1,920.00

Cash 1,920.00
Reimbursed Namikaze for mileage.

30 Wages Expense 8,750.00

Cash 8,750.00
Paid employee for part-time work.

Namikaze Withdrawal 10,000.00

Cash 10,000.00
Withdrew cash for personal use

December 2 Advertising Expense 5,125.00

Cash 5,125.00
Paid share of mall advertising costs.

3 Repairs Expense 2,500.00

Cash 2,500.00
Paid minor repairs to company's computer.

4 Cash 19,750.00
Accounts Receivable 19,750.00
Collected accounts receivable.

10 Wages Expense 3,750.00

Cash 3,750.00
Paid employee for part-time work.

14 Cash 7,500.00
 Unearned Computer Services Revenue 7,500.00
Received advance on work to be performed.

15 Computer Supplies 5,500.00

Accounts Payable 5,500.00
Purchased supplies on credit.

16 No entry necessary.

20 Cash 28,125.00
Computer Services Revenue 28,125.00
Collected cash revenue from client.

28 Cash 15,000.00
Accounts Receivable 15,000.00
Collected accounts receivable.

29 Mileage Expense 960.00

Cash 960.00
Reimbursed Namikaze for mileage.

31 Namikaze Withdrawal 7,500.00

Cash 7,500.00
Withdrew cash for personal use
ADDITIONAL JOURNAL ENTRIES

d Depreciation Expense - Computer System 6,250.00

Accumulated Depreciation - Computer System 6,250.00

e Depreciation Expense - Office Equipment 2,000.00

Accumulated Depreciation - Office Equipment 2,000.00

f Rent Expense 12,375.00

Prepaid Rent 12,375.00

a Computer Supplies Expense 15,905.00

Computer Supplies 15,905.00

b Insurance Expense 2,775.00

Prepaid Insurance 2,775.00

57,040.00 18,100.00 38,940.00

c Wages Expense 2,500.00
Wages Payable 2,500.00
REMARKS Date PARTICULARS

02-Oct-19 Paid four months' rent in advance

03-Oct-19 Purchased supplies on credit.
05-Oct-19 Paid 12 months' premium in advance.
06-Oct-19 Billed customer for services.
08-Oct-19 Paid balance due on accounts payable.
12-Oct-19 Billed customer for services.
15-Oct-19 Collected accounts receivable.
17-Oct-19 Paid for computer repairs.
20-Oct-19 Purchased ads in local newspaper.
22-Oct-19 Collected accounts receivable.
28-Oct-19 Billed customer for services.
31-Oct-19 Paid employee for part-time work.
31-Oct-19 Withdrew cash for personal use
01-Nov-19 Reimbursed Namikaze for mileage.
02-Nov-19 Collected cash revenue from client.
05-Nov-19 Purchased computer supplies for cash.
08-Nov-19 Billed customer for services.
18-Nov-19 Collected accounts receivable.
22-Nov-19 Record donation.
24-Nov-19 Billed customer for services.
28-Nov-19 Reimbursed Namikaze for mileage.
30-Nov-19 Paid employee for part-time work.
30-Nov-19 Withdrew cash for personal use
02-Dec-19 Paid share of mall advertising costs.
03-Dec-19 Paid minor repairs to company's computer.
04-Dec-19 Collected accounts receivable.
10-Dec-19 Paid employee for part-time work.
 14-Dec-19 Received advance on work to be performed.
15-Dec-19 Purchased supplies on credit.
20-Dec-19 Collected cash revenue from client.
28-Dec-19 Collected accounts receivable.
29-Dec-19 Reimbursed Namikaze for mileage.
31-Dec-19 Withdrew cash for personal use
31-Dec-19 Accrued wages for 4 days work
31-Dec-19 Recording depreciation expense for computer system
31-Dec-19 Recording depreciation expense for office equipment
31-Dec-19 Three month's prepaid rent has expired
31-Dec-19 Computer supplies used
31-Dec-19 Three months of 12-month insurance premium have expired

TOTAL
 Accounts Repair Mileage Miscellaneous Wages
Cash
Payable Expense Expense Expense Expense

7,100.00

24,000.00
4,025.00

7,000.00

4,375.00

1,600.00
23,165.00

11,040.00
1,250.00

1,920.00
8,750.00

2,500.00
19,750.00
3,750.00
 7,500.00

28,125.00
15,000.00
960.00

2,500.00

135,580.00 7,100.00 6,525.00 4,480.00 1,250.00 19,375.00

 Debit

Depreciation
Namikaze Advertising Prepaid Rent
Computer Prepaid
Expense -
Withdrawal Expense Supplies Insurance
Computer System

16,500.00
7,100.00
11,100.00

9,700.00

18,000.00

5,625.00

10,000.00
5,125.00
 5,500.00

7,500.00

6,250.00

35,500.00 14,825.00 16,500.00 18,225.00 11,100.00 6,250.00

Depreciation
Computer
Expense - Insurance Rent Accounts
Supplies Cash
Office
Expense
Expense Expense Receivable
Equipment

16,500.00

11,100.00
24,000.00
7,100.00
7,000.00

4,025.00
9,700.00

26,040.00
4,375.00
18,000.00
1,600.00

5,625.00
28,340.00

1,250.00
19,750.00
1,920.00
8,750.00
10,000.00
5,125.00
2,500.00

3,750.00
 960.00
7,500.00

2,000.00
12,375.00
15,905.00
2,775.00

2,000.00 15,905.00 2,775.00 12,375.00 105,130.00 119,780.00

 CREDIT

Accounts Computer Services

Accounts Receivable Unearned Computer Wages
Payable Revenue Services Revenue Payable

7,100.00

24,000.00

7,000.00
24,000.00

7,000.00
26,040.00

23,165.00

28,340.00
11,040.00

19,750.00

19,750.00
 7,500.00
5,500.00
28,125.00
15,000.00

2,500.00

12,600.00 156,420.00 76,790.00 7,500.00 2,500.00

DIT

Accumulated Accumulated
Prepaid Computer Prepaid
Depreciation - Depreciation - Office
Rent Supplies Insurance
Computer System Equipment
6,250.00
2,000.00
12,375.00
15,905.00
2,775.00

6,250.00 2,000.00 12,375.00 15,905.00 2,775.00

CASH RECEIPTS BOOKS

Date Payor Particulars

15-Oct-19 Rasengan Leasing Collected accounts receivable.
22-Oct-19 Rasengan Leasing Collected accounts receivable.
02-Nov-19 Naruto Corporation Collected cash revenue from client.
18-Nov-19 ROK Company Collected accounts receivable.
04-Dec-19 Kakashi's Engineering Co Collected accounts receivable.
14-Dec-19 Kakashi's Engineering Co Received advance on work to be performed.
20-Dec-19 Naruto Corporation Collected cash revenue from client.
28-Dec-19 Boruto Co Collected accounts receivable.
Debit Credit

Unearned
Computer Computer Services
Accounts Services Revenue Revenue
Cash Receivable
24,000.00 24,000.00 0.00
7,000.00 7,000.00 0.00
23,165.00 23,165.00 0.00
11,040.00 11,040.00 0.00
19,750.00 19,750.00 0.00
7,500.00 7,500.00 0.00
28,125.00 28,125.00 0.00
15,000.00 15,000.00 0.00
0.00
0.00
0.00
135,580.00 76,790.00 51,290.00 7,500.00
CASH DISBURSEMENT BOOKS
Credit

Date Payee Particulars Cash

02-Oct-19 Paid four months' rent in advance 16,500.00
05-Oct-19 Paid 12 months' premium in advance. 11,100.00
08-Oct-19 Jiraiya Office Products Paid balance due on accounts payable. 7,100.00
17-Oct-19 Paid for computer repairs. 4,025.00
20-Oct-19 Purchased ads in local newspaper. 9,700.00
31-Oct-19 Kushina Uzumaki Paid employee for part-time work. 4,375.00
01-Nov-19 Minato Namikaze Reimbursed Namikaze for mileage. 1,600.00
05-Nov-19 Jiraiya Office Products Purchased computer supplies for cash. 5,625.00
22-Nov-19 United Shinobi Record donation. 1,250.00
28-Nov-19 Minato Namikaze Reimbursed Namikaze for mileage. 1,920.00
30-Nov-19 Kushina Uzumaki Paid employee for part-time work. 8,750.00
02-Dec-19 Minatwice Mall Paid share of mall advertising costs. 5,125.00
03-Dec-19 Paid minor repairs to company's computer. 2,500.00
10-Dec-19 Kushina Uzumaki Paid employee for part-time work. 3,750.00
29-Dec-19 Minato Namikaze Reimbursed Namikaze for mileage. 960.00

84,280.00
 Debit
Miscellan
Prepaid Accounts Repair Advertising eous Mileage
Prepaid Rent Insurance Payable Expense Expense Expense Expense
16,500.00
11,100.00
7,100.00
4,025.00
9,700.00

1,600.00

1,250.00
1,920.00

5,125.00
2,500.00

960.00

16,500.00 11,100.00 7,100.00 6,525.00 14,825.00 1,250.00 4,480.00

Computer Wages
Supplies Expense
0.00
0.00
0.00
0.00
0.00
4,375.00 0.00
0.00
5,625.00 0.00
0.00
0.00
8,750.00 0.00
0.00
0.00
3,750.00 0.00
0.00
0.00
5,625.00 16,875.00
SALES BOOKS

Date Customers Particulars

06-Oct-19 Rasengan Leasing Billed customer for services.
12-Oct-19 Rasengan Leasing Billed customer for services.
28-Oct-19 ROK Company Billed customer for services.
02-Nov-19 Naruto Corporation Collected cash revenue from client.
08-Nov-19 Boruto Co. Billed customer for services.
24-Nov-19 Kakashi's Engineering Company Billed customer for services.
14-Dec-19 Kakashi's Engineering Co Received advance on work to be performed.
20-Dec-19 Naruto Corporation Collected cash revenue from client.
 VATABLE Non-VAT
Unearned Computer
Computer Services Services Revenue
Accounts Receivable Output VAT Revenue
24,000.00 2,571.43 21,428.57
7,000.00 750.00 6,250.00
26,040.00 2,790.00 23,250.00
23,165.00 2,481.96 20,683.04
28,340.00 3,036.43 25,303.57
19,750.00 2,116.07 17,633.93
7,500.00 803.57 6,696.43
28,125.00 3,013.39 25,111.61
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
163,920.00 17,562.86 139,660.71 6,696.43 0.00
Non-VAT

0.00 0.00
PURCHASE BOOKS

Date Suppliers Particulars Accounts Payable

03-Oct-19 Jiraiya Office Products Purchased supplies on credit. 6,339.29
05-Nov-19 Jiraiya Office Products Purchased computer supplies for ca 5,022.32
15-Dec-19 Jiraiya Office Products Purchased supplies on credit. 4,910.71
0.00
0.00
0.00
0.00
0.00
16,272.32
 VAT Purchases
Input VAT Computer Supplies
760.71 7,100.00
602.68 5,625.00
589.29 5,500.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
1,952.68 18,225.00 0.00 0.00 0.00
 Non-VAT Purchases

0.00 0.00 0.00

 Other Transactions With Accruals

REMARKS Date PARTICULARS

31-Oct-19 Withdrew cash for personal use

30-Nov-19 Withdrew cash for personal use
31-Dec-19 Withdrew cash for personal use
31-Dec-19 Accrued wages for 4 days work
31-Dec-19 Computer supplies used
31-Dec-19 Recording depreciation expense for computer system
31-Dec-19 Recording depreciation expense for office equipment
01-Jan-20 Three month's prepaid rent has expired
02-Jan-20 Three months of 12-month insurance premium have expired

TOTAL
 Debit

Computer Depreciation
Depreciation
Namikaze Expense - Rent
Wages expense Supplies Expense - Office
Withdrawal Computer
Equipment
Expense
Expense System

18,000.00
10,000.00
7,500.00
2,500.00
15,905.00
er system 6,250.00
2,000.00
12,375.00
have expired

35,500.00 2,500.00 15,905.00 6,250.00 2,000.00 12,375.00

 CREDIT

Accumulated Accumulated
Insurance Wages Computer
Cash Depreciation - Depreciation - Office
Expense Payable Supplies Computer System Equipment

18,000.00
10,000.00
7,500.00
2,500.00
15,905.00
6,250.00
2,000.00

2,775.00

2,775.00 35,500.00 2,500.00 15,905.00 6,250.00 2,000.00

Prepaid Prepaid
Rent Insurance

0.00
0.00
0.00
0.00
0.00
0.00
0.00
12,375.00 0.00
2,775.00 0.00
0.00
12,375.00 2,775.00 0.00
Account No.

101
201
301
401
402
501
502
601
701
801
901
902
951
981
982
983
984
985
986
987
988
989
990
991
992
1001
Cash
Accounts Receivables
Computer Supplies
Prepaid Insurance
Prepaid Rent
Computer System
Office Equipment
Accounts Payable
Wages Payable
Unearned Computer Services Revenue
Namikaze Capital
Namikaze Withdrawal
Computer Services Revenue
Repair Expense
Advertising Expense
Wages Expense
Mileage Expense
Miscellaneous Expense
Rent Expense
Computer Supplies Expense
Insurance Expense
Depreciation Expense - Office Equipment
Depreciation Expense - Computer System
Accumulated Depreciation - Computer System
Accumulated Depreciation - Office Equipment
Income Summary
 TRIAL BALANCE
FOR THE FOURTH QUARTER

As of October 1, 2019 Transactions (November and December)

Dr Cr Dr
275,000.00 135,580.00
105,130.00
18,225.00
11,100.00
16,500.00
100,000.00
40,000.00
7,100.00

415,000.00
35,500.00

6,525.00
14,825.00
19,375.00
4,480.00
1,250.00
12,375.00
15,905.00
2,775.00
2,000.00
6,250.00
415,000.00 415,000.00 414,895.00
0.00
ions (November and December) Closing As of December 31, 2019
Cr
119,780.00 290,800.00
76,790.00 28,340.00
15,905.00 2,320.00
2,775.00 8,325.00
12,375.00 4,125.00
100,000.00
40,000.00
12,600.00
2,500.00
7,500.00

35,500.00
156,420.00 156,420.00
6,525.00
14,825.00
19,375.00
4,480.00
1,250.00
12,375.00
15,905.00
2,775.00
2,000.00
6,250.00
6,250.00
2,000.00
70,660.00
414,895.00 156,420.00 156,420.00 509,410.00
0.00 0.00
s of December 31, 2019

5,500.00
2,500.00
7,500.00
485,660.00

6,250.00
2,000.00
509,410.00
0.00
 Konohagakure Systems
BALANCE SHEET
DECEMBER 31, 2019

ASSETS
Current Assets
101 Cash 290,800.00
201 Accounts Receivables 28,340.00
301 Computer Supplies 2,320.00
401 Prepaid Insurance 8,325.00
402 Prepaid Rent 4,125.00
Total Current Asset 333,910.00

Non Current Asset

501 Computer System 100,000.00
991 Accumulated Depreciation - Computer System 6,250.00 93,750.00
502 Office Equipment 40,000.00
992 Accumulated Depreciation - Office Equipment 2,000.00 38,000.00
Total Non Current Asset 131,750.00
TOTAL ASSET 465,660.00
Konohagakure Systems
BALANCE SHEET
DECEMBER 31, 2019

LIABILITIES
Current Liabilities
601 Accounts Payable 5,500.00
701 Wages Payable 2,500.00
801 Unearned Computer Services Revenue 7,500.00
Total Current Liabilities 15,500.00
Non Current Liabilities -
Total Liabilities 15,500.00

Owner's Equity
901 Namikaze Capital 485,660.00
902 Namikaze Withdrawal 35,500.00 450,160.00
Total Owner's Equity 450,160.00

TOTAL LIABILITIES AND EQUITY 465,660.00

 Konohagakure Systems
Income Statement
FOR THE YEAR ENDED DECEMBER 31, 2019

REVENUE ITEM
951 Computer Services Revenue 156,420.00
Total Revenues 156,420.00

EXPENSE ITEMS
981 Repair Expense 6,525.00
982 Advertising Expense 14,825.00
983 Wages Expense 19,375.00
984 Mileage Expense 4,480.00
985 Miscellaneous Expense 1,250.00
986 Rent Expense 12,375.00
987 Computer Supplies Expense 15,905.00
988 Insurance Expense 2,775.00
989 Depreciation Expense - Office Equipment 2,000.00
990 Depreciation Expense - Computer System 6,250.00
Total Expenses 85,760.00
NET SURPLUS/(NET LOSS) 70,660.00
 Konohagakure Systems
Income Statement
FOR THE YEAR ENDED DECEMBER 31, 2019

901 Namikaze Capital ,October 1

Investments during the year -
Add: Net Income for the year 70,660.00
Total 70,660.00
902 Namikaze Withdrawal 35,500.00
Net Increase in owner's equity

901 Namikaze Capital ,December 31

R 31, 2019

415,000.00

35,160.00

450,160.00
 Konohagakure Systems
STATEMENT OF CASH FLOWS
For the year ended December 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash generated from (used in) operations

CASH FLOWS FROM INVESTING ACTIVITIES
Cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES

Net cash provided by (used in) financing activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AT BEGINNING OF OPERATIONS
CASH AT END OF YEAR
 Konohagakure Systems
STATEMENT OF CASH FLOWS
For the year ended December 31, 2019

ERATING ACTIVITIES

ted from (used in) operations

VESTING ACTIVITIES
vesting activities
NANCING ACTIVITIES

ed by (used in) financing activities

ASE) IN CASH AND CASH EQUIVALENTS
F OPERATIONS