Marian A.
Polanco
Journal entry
Feb 1 Cash 113,000
Accounts receivable 113,000
2 Accounts payable 64,000
Cash 62,080
Purchase discount 1,920
4 Purchases 170,000
Accounts payable 170,000
5 accounts receivable 270,000
Sales 270,000
7 Advertising expenses 6,000
Cash 6,000
7 Cash 250,000
Sales 250,000
8 Accounts payable 170,000
Purchase discount 5,100
Cash 164,900
9 Transportation In 4,000
Cash 4,000
10 Sales return and allowances 70,000
Accounts receivable 70,000
12 Sales discount 4,000
Cash 196,000
Accounts receivable 200,000
14 interest expense 26,000
Cash 26,000
15 Salaries Expense 51,000
Cash 51,000
16 Accounts Receivable 392,000
Sales 392,000
18 Transportation out 4,000
Cash 4,000
19 Supplies 21,000
Cash 21,000
20 Purchases 125,000
Accounts payable 125,000
22 Miscellaneous expenses 7,000
Cash 7,000
23 Cash 384,160
Sales discount 7,840
Accounts Receivable 392,000
24 Purchases 373,000
Accounts payable 373,000
24 Transportation in 9,000
Cash 9,000
25 Accounts receivable 420,000
Sales 420,000
26 Sales return and allowances 71,000
Accounts receivable 71,000
28 Chua, withdrawals 400,000
Cash 400,000
28 Accounts payable 25,000
Purchase returns and allowances 25,000
Adjusting entries
a. Salaries expense 51,000
Salaries payable 51,000
b. Insurance expense 2,000
Prepaid insurance 2,000
c. Depreciation expense- building 9,000
Accumulated depreciation- building 9,000
Depreciation expense- equipment 12,000
Accumulated depreciation- equipment 12,000
d. Supplies expense 58,000
Supplies 58,000
Unadjusted trial balance Adjusting entries Adjusted Trial balance Income Statement Balance sheet
Account titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 221 180 221 180 221 180
120 Accounts 428 000 428 000 428 000
receivable
130 Merchandise 413 000 413 000 413 000 397 000 397 000
inventory
140 Supplies 72 000 58 000 14 000 14 000
150 Prepaid 48 000 2 000 46 000 46 000
insurance
160 Land 460 000 460 000 460 000
170 Building 1 750 000 1 750 000 1 750 000
175 Accum. Dep. 350 000 9 000 359 000 359 000
Building
180 Equipment 2 310 000 2 310 000 2 310 000
185 Accum. Dep. – 630 000 12 000 642 000 642 000
equip
210 Accounts 517 000 517 000 517 000
payable
220 Salaries payable 51 000 51 000 51 000
230 Mortgage 2 600 000 2 600 000 2 600 000
payable
310 Chua, capital 1 569 000 1 569 000 1 569 000
320 Chua, 400 000 400 000 400 000
withdrawals
330 Income
summary
410 Sales 1 332 000 1 332 000 1 332 000
420 Sales returns 141 000 141 000 141 000
and allowances
430 Sales discounts 11 840 11 840 11 840
510 Purchases 668 000 668 000 668 000
520 Purchase return 25 000 25 000 25 000
and allowances
530 Purchase 7020 7 020 7 020
discounts
540 Transportation 13 000 13 000 13 000
In
610 Salaries expense 51 000 51 000 102 000 102 000
620 Supplies 58 000 58 000 58 000
expense
630 Insurance 2 000 2 000 2 000
expense
640 Dep. Exp. – 9 000 9 000 9 000
building
650 Dep. Exp. – 12 000 12 000 12 000
equipment
660 Transportation 4000 4 000 4 000
out
670 Advertising exp. 6000 6 000 6 000
680 Interest exp. 26 000 26 000 26 000
690 Miscellaneous 7 000 7 000 7 000
expense
TOTAL 7 030 020 7 030 020 132 000 132 000 7 102 020 7 102 020 1 472 840 1 761 020 6 026 180 5 738 000
288 180 288 180
1 472 840 1 472 840 6 026 180 6 026 180
Statement of Financial Performance
For the Month Ended February 28, 2020
Revenues
Sales 1 332 000
Less: Sales Return and Allowances 141 000
Sales discount 11 840 152 840
___________
Net Sales 1 179 160
Cost of Sale
Merchandise Inventory 2/1/2020 413 000
Purchases 668 000
Less: Purchase returns and allowances 25 000
Purchase discount 7 020 32 020__
Net Purchase 635 980
Transportation In 13 000
Net Cost of Purchases 648 980__
Goods Available for Sale 1 061 980
Less: Merchandise Inventory 1/28/2020 397 000
Cost of Sale 664 980
Gross Profit 514 180
Operating expenses
Selling Expenses
Transportation out 4 000
Advertising Expense 6 000
Total selling expense 10 000
Administrative expenses
Salaries expense 102 000
Supplies expense 58 000
Insurance expense 2000
Depreciation expense- Building 9 000
Depreciation expense- Equipment 12 000
Total administrative expenses 183 000
(193
Total Operating expenses
000)
Operating profit 321 180
Other expenses
Interest expense 26 000
Miscellaneous Expenses 7 000
Total other expenses (33 000)
NET INCOME 288 180
_______
Irene Chua Shoes
Statement of Changes in Owner’s Equity
For the month ended February 28, 2020
Chua, owner’s Equity 2/1/2020 1 569 000
Add: profit 288 180
Total 1 857 180
Less: Withdrawals 400 000
Chua, owner’s equity 2/28/2020 1 457 180
__
Irene Chua Shoes
Statement of financial position
February 28, 2020
Assets
Current Asset
Cash 221 180
Accounts receivable 428 000
Merchandise inventory 397 000
Supplies 14 000
Prepaid insurance 46 000
Total current assets 1 106
180
Non-current assets
Land 460 000
Building 1 750 000
Less: accumulated depreciation- building 359 000 1 391 000
Equipment 2 310 000
Less: accumulated depreciation- building 642 000 1 668 000
3 519
Total non-current assets
000
4 625
Total assets
180
________
Liabilities and Owner’s equity
Current liabilities
Accounts payable 517 000
Salaries payable 51 000
Total current liabilities 568 000
Non-current liabilities
Mortgage payable 2 600 000
Total non-current liabilities 2 600 000
Owner’s equity
Chua, capital 1 457 180
Total liabilities and owner’s equity 4 625 180
_________
Closing entries
Income Summary 1 472 840
Merchandise Inventory Beginning 413 000
Purchases 668 000
Sales Return and Allowances 141 000
Sales discount 11 840
Transportation in 13 000
Transportation out 4 000
Advertising Expense 6 000
Salaries expense 102 000
Supplies expense 58 000
insurance expense 2000
Depreciation expense- Building 9 000
Depreciation expense- Equipment 12 000
Interest expense 26 000
Miscellaneous Expenses 7 000
Merchandise inventory, End 397 000
Revenues 1 332 000
Purchase returns and allowances 25 000
Purchase discount 7 020
Income Summary 1 761 020
Income Summary 288 180
Chua, capital 288 180
Chua, Capital 400 000
Chua, withdrawals 400 000
