Rongim Benedcit P.

Guadalupe BABA1G 11/02/2021

Journal entry

DATE ACCOUNTS TITLE DEBIT CREDIT

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
Cash 221,180 221,180 221,180
Accounts 428,000 428,000 428,000
receivable
Merchandise 413,000 413,000 413,000 397,000 397,000
inventory
Supplies 72,000 58,000 14,000 14,000
Prepaid 48,000 2,000 46,000 46,000
insurance
Land 460,000 460,000 460,000
Building 1,750,000 1,750,000 1,750,000
Accum. Dep. 350,000 9,000 359,000 359,000
Building
Equipment 2,310,000 2,310,000 2,310,000
Accum. Dep. – 630,000 12 000 642,000 642,000
equip
Accounts 517,000 517,000 517,000
payable
Salaries 51 000 51,000 51,000
payable
Mortgage 2,600,000 2,600,000 2,600,000
payable
Chua, capital 1,569,000 1,569,000 1,569,000
Chua, 400,000 400,000 400,000
withdrawals
Income
summary
Sales 1,332,000 1,332,000 1,332,000
Sales returns 141,000 141,000 141,000
and allowances
Sales discounts 11,840 11,840 11,840
Purchases 668,000 668,000 668,000
Purchase return 25,000 25,000 25,000
and allowances
Purchase 7,020 7,020 7,020
discounts
Transportation 13,000 13,000 13,000
In
Salaries 51,000 51,000 102,000 102,000
expense
Supplies 58,000 58,000 58,000
expense
Insurance 2,000 2,000 2,000
expense
Dep. Exp. – 9,000 9,000 9,000
building
Dep. Exp. – 12,000 12,000 12,000
equipment
Transportation 4,000 4,000 4,000
out
Advertising exp. 6,000 6,000 6,000
Interest exp. 26,000 26,000 26,000

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

___________
1,179,160
Net Sales

Cost of Sale

Merchandise Inventory 2/1/2020 413,000

Purchases 668,000

Less: Purchase returns and allowances25 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 2,000

Depreciation expense- Building 9,000

Depreciation expense- Equipment 12,000

Total administrative expenses 183,000

Total Operating expenses (193,000)

321,180
Operating profit
Other expenses

Interest expense 26,000

Miscellaneous Expenses 7,000

Total other expenses (33,000)

NET INCOME 288,180

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’s, owner’s equity 2/28/2020 1 457 180

 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

1,106,180
Total current assets
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

Total non-current assets 3,519,000

Total assets 4,625,180

 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 2,000

Depreciation expense- Building 9,000

Depreciation expense- Equipment 12,000

26,000
Interest expense
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