a) Salary Expense 4,800

Accrued Salaries 4,800

b) Fees Earned 4,500
Unearned Fees 4,500
c) Supplies Expense 1,250
Office Supplies 1,250
d) Insurance Expense 2,000
Prepaid Insurance 2,000
e) Depreciation Expense 9,000
Accumulated Depreciation 9,000
1) a) Office Supplies Expense 6,850
Office Supplies 6,850
b) Salary Expense 13,500
Salary Payable 13,500
c) Advertising Expense (800x2) 1,600
Prepaid Advertisng 1,600
d) Unearned Fees 2,500
Professional Fees 2,500

2) Office Supplies Expense 6,850

Office Supplies 1,450
Salary Expense 90,000
Salary Payable 13,500
Advertising Expense 1,600
Prepaid Advertising 3,200
Professional Fees 258,300
Unearned Fees 7,500
1) 1) Supplies Expense 1,800
Supplies 1,800
2) Deppreciation Expense (70,000/10) 7,000
Accumulated Deppreciation 7,000
3) Rent Expense 12,000
Prepaid Rent 12,000
4) Salary Expense (2,750x2) 5,500
Salary Expense 5,500
5) Unearned Fees 21,000
Fees Earned 21,000
6) Accounts Recivable 12,250
Fees Earned 12,250

2) Accounts Receivable 41,500

Supplies 900
Prepaid Rent 6,000
Accumulated Deppreciation 21,000
Salary Payable 5,500
Unearned Fees 5,500
Fees Earned 333,050
Salary Expense 65,500
Rent Expense 36,000
Supplies Expense 1,800
Deppreciation Expense 7,000
1) Supplies Expense 25,500
Supplies 25,500
2) Insurance Expense 12,000
Prepaid Insurance 12,000
3) Deppreciation Expense 7,500
Accumulated Deppreciation 7,500
4) Salary Expense 6,400
Accrued Salaries 6,400
5) Service Fee 7,000
Unearned Service Fee 7,000
6) Utilities Expense 1,600
Accounts Payable 1,600
1) ADJUSTING ENTRIES

1) Supplies Expense (75/x2,300) 1,725

Supplies 1,725
2) Accounts Receivable 2,350
Service Income 2,350
3) Deppreciation (1/2 x 16,000) 8,000
Accumulated Deppreciation 8,000
4) Salary Expense 4,750
Salary Payable 4,750
5) Unearned Income 3,000
Service Income 3,000
 INCOME STATEMENT ASSETS LIABILITIES OWNER'S EQUITY

OVERSTATED OVERSTATED OVERSTATED

UNDERSTATED UNDERSTATED UNDERSTATED

OVERSTATED OVERSTATED OVERSTATED

OVERSTATED UNDERSTATED OVERSTATED

UNDERSTATED UNDERSTATED OVERSTATED UNDERSTATED

1) a) Deppreciation (9/12x12,000) 9,000
Accumulated Deppreciation 9,000
b) Accounts Receivable 6,000
Fees Earned 6,000
c) Prepaid Insurance 1,200
Insurance Expense 1,200
d) Salary Expense 3,600
Accumulated Salaries 3,600
e) Unused Supplies 1,050
Supplies Expense 1,050

2) NET INCOME TOTAL ASSETS

Reported Amounts 152,450 489,800
a) (9,000) (9,000)
b) 6,000 6,000
c) 1,200 1,200
d) (3,600)
e) 1,050 1,050
Adjusted Amounts 148,100 489,050
TOTAL LIABILITIES TOTAL OWNER'S EQUITY
120,500 369,300
(9,000)
6,000
1,200
3,600 (3,600)
1,050
124,100 364,950
1 Accounts Receivable 4,200
Service Income 4,200
2 Insurance Expense 2,400
Prepaid Insurance 2,400
3 Prepaid Advertising 1,200
Advertisng Expense 1,200
4 Supplies Expense 1,500
Office Supplies 1,500
5 Deppreciation 3,200
Accumulated Deppreciation 3,200
6 Unearned Rent 1,800
Rent Income 1,800
7 Salary Expense 3,600
Salary Payable 3,600
a)
Manila Realty Agency
Income Statement
Year Ended Dec. 31. 20CY

Fees Earned
Less: Expenses:
Depreciation Expense 18,300
Insurance Expense 7,800
Miscellaneous Expense 4,500
Rent Expense 60,000
Supplies Expense 6,200
Salary Expense 113,600
Utilities Expense 17,000
Net Profit
 b)
Manila Realty Agency
Statement of Owner's Equity
Year Ended Dec. 31, 20CY

287,220 Beginning Capital 195,640

Add: Net Profit 59,820
Total 255,460
Less: Drawing 48,000
Ending Capital 207,460

227,400
59,820
c)
Manila Realty Agency
Balance Sheet
Dec. 31, 20CY

ASSETS

Cash 21,120
Accounts Receivable 57,840
Prepaid Insurance 8,000
Prepaid Rent 15,000
Office Supplies 2,500
Equipment 183,000
Accumulated Deppreciation 42,000 141,000
245,460
 d)

1
LIABILITIES
2
Accounts Payable 25,500
Salaries Payable 7,500
Unearned Fees 5,000
38,000

Owner's Equity
Mario Flores Capital 207,460
3
245,460
4
 CLOSING ENTRIES

Fees Earned 287,220

Income and Expense Summary 287,220
Income and Expense Summary 227,400
Deppreciation Expense 18,300
Insurance Expense 7,800
Miscellaneous Expense 4,500
Rent Expense 60,000
Supplies Expense 6,200
Salary Expense 113,600
Utilities Expense 17,000
Income and Expense Summary 59,820
Mario Flores Capital 59,820
Capital 48,000
Drawings 48,000
e)
Manila Realty Agency
Post-Closing Trial Balance
Dec. 31, 20CY

ACCOUNTS Debit Credit

Cash 21,120
Accounts Receivable 57,840
Prepaid Insurance 8,000
Prepaid Rent 15,000
Office Supplies 2,500
Equipment 183,000
Accumulated Depreciation 42,000
Accounts Payable 25,500
Salaries Payable 7,500
Unearned Fees 5,000
Mario Flores Capital 207,460
287,460 287,460
a) ADJUSTING JOURNAL ENTRIES

1 Accounts Receivable 8,600

Laundry Income 8,600
2 Rent Expense 6,000
Prepaid Rent 6,000
3 Supplies Expense 17,500
Laundry Supplies 17,500
4 Depreciation 19,000
Accumulated Depreciation 19,000
5 Salary Expense 2,700
Salary Payable 2,700
6 Prepaid Insurance 4,800
Insurance Expense 4,800
7 Taxes and Licenses Expense 2,400
Taxes and Licenses Payable 2,400
b)

Trial Balance
ACCOUNTS Debit Credit
Cash 26,200
Account Receivable 15,200
Prepaid Rent 84,000
Laundry Supplies 23,120
Laundry Equipment 190,000
Accumulated Deppreciation 57,000
Accounts Payable 25,750
Lucky Santos Capital 127,320
Lucky Santos Drawing 60,000
Laundry Income 340,900
Salary Expense 102,800
Insurance Expense 18,000
Utilities Expense 26,250
Miscellaneous Expense 5,400
TOTALS 550,970 550,970
Rent Expense
Supplies Expense
Deppreciation
Salary Payable
Prepaid Insurance
Taxes and Licenses
Taxes and Licenses Payable
TOTALS
Net Profit
TOTALS
 Lucky Lanudry Shop
Worksheet
Year Ended Dec. 31, 20CY

Adjusted
Adjustments Trial Balance
Debit Credit Debit Credit
26,200
1) 8,600 23,800
2) 72,000 12,000
3) 17,500 5,620
190,000
4) 19,000 76,000
25,750
127,320
60,000
1) 8,600 349,500
5) 2,700 105,500
6) 4,800 13,200
26,250
5,400

2) 72,000 72,000
3) 17,500 17,500
4) 19,000 19,000
5) 2,700 2,700
6) 4,800 4,800
7) 2,400 2,400
7) 2400 2,400
127,000 127,000 583,670 583,670
 c)

Income Statement Balance Sheet

Debit Credit Debit Credit
26,200
23,800
12,000
5,620
190,000
76,000
25,750
127,320
60,000
349,500
105,500
13,200
26,250
5,400

72,000
17,500
19,000
2,700
4,800
2,400 2,400

261,250 349,500 322,420 234,170

88,250 88,250
349,500 349,500 322,420 322,420
 Lucky Laundry Shop
Income Statement
Year Ended Dec. 31. CY

Laundry Income 349,500

Less: Expenses
Salary Expense 105,500
Insurance Expense 13,200
Rent Expense 72,000
Utilities Expense 26,250
Miscellaneous Expense 5,400
Deppreciation Expense 19,000
Taxes and Licenses Expense 2,400
Supplies Expense 17,500 261,250
Net Profit 88,250
d)
Lucky Laundry Shop
Statement of Owner's Equity
Year Ended Dec. 31, CY

Beginning Capital 127,320

Add: Net Profit 88,250
Total 215,570
Less: Drawing 60,000
Ending Capital 155,570
e.) Lucky Laundry Shop
Balance Sheet
Dec. 31, CY
ASSETS Liabilities
Cash 26,200 Accounts Payable
Accounts Receivable 23,800 Salary Payable
Prepaid Rent 12,000 Taxes and Licenses
Laundry Supplies 5,620 Total
Prepaid Insurance 4,800
Laundry Equipment 190,000 Owner's Capital
Accumulated Depreciation -76,000 114,000 Lucky Santos Capital
TOTAL 186,420 TOTAL
 e.) CLOSING ENTRIES

1 Laundry Income 349,500

Income and Expense Summary
25,750 2 Income and Expense Summary 261,250
2,700 Salary Expense
2,400 Insurance Expense
30,850 Rent Expense
Utilities Expense
Miscellaneous Expense
155,570 Supplies Expense
186,420 Depreciation Expense
Taxes and Licenses
3 Income and Expense Summary 88,250
L. Santos Drawing
4 L. Santos Drawing 28,250
L. Santos Capital

method 2
3 Income and Expense Summary 88,250
L. Santos Capital
4 L. Santos Capital 60,000
L. Santos Drawing
CLOSING ENTRIES f.) Lucky Laundry Shop
Post-Closing Trial Balance
Dec. 31, CY
349,500
ACCOUNTS DEBIT
105,500 Cash 26,200
13,200 Accounts Receivable 23,800
72,000 Prepaid Rent 12,000
26,250 Laundry Supplies 5,620
5,400 Prepaid Insurance 4,800
17,500 Laundry Equipment 190,000
19,000 Accumulated Depreciaton
2,400 Accounts Payable
Salary Payable
88,250 Taxes and Licenses Payable
L. Santos Capital
28,250 TOTALS 262,420

88,250

60,000
 Lucky Laundry Shop
Post-Closing Trial Balance
Dec. 31, CY

CREDIT

76,000
25,750
2,700
2,400
155,570
262,420
a.) ADJUSTING JOURNAL ENTRIES

1 Rent Expense (5000x2) 10,000

Rent Payable 10,000
2 Insurance Expense (1/2x10800) 5,400
Prepaid Insurance 5,400
3 Advertising Expense 1,000
Advertising Payable 1,000
4 Consulting Fees (1/2x9600) 4,800
Unearned Consulting Fees 4,800
5 Supplies Expense 12,450
Office Supplies 12,450
6 Depreciation Expense(150000/10) 15,000
Accumulated Depreciation 15,000
b.)

Trial Balance
ACCOUNTS DEBIT
Cash 152,360
Accounts Receivable 70,500
Office Supplies 18,850
Prepaid Insurance 10,800
Furniture and equipment 150,000
Accumulated Deprecation
Accounts Payable
R. Harris Capital
R. Harris Drawing 72,000
Consulting Fees
Salary Expense 139,600
Advertising Expense 11,000
Rent Expense 50,000
Taxes and Licenses 16,900
Utilities Expense 31,250
Miscelaneous Expense 13,650
TOTALS 736,910
Rent Payable
Insurance Expense
Advertising Payable
Unearned Consulting Fees
Supplies Expense
Depreciation
TOTALS
 RH Consulting Services
WorkSheet
Year Ended June 30, CY

Adjusted
Trial Balance Adjustments Trial Balance Income Statement
CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
152,360
70,500
5) 12,450 6,400
2) 5,400 5,400
150,000
30,000 6) 15,000 45,000
66,080 66,080
247,350 247,350
72,000
393,480 4) 4,800 388,680
139,600 139,600
3) 1,000 12,000 12,000
1) 10,000 60,000 60,000
16,900 16,900
31,250 31,250
13,650 13,650
736,910
1) 10,000 10,000
2) 5,400 5,400 5,400
3) 1,000 1,000
4) 4,800 4,800
5) 12,450 12,450 12,450
6) 15,000 15,000 15,000
48,650 48,650 762,910 762,910 306,250
82,430
388,680
 c.)

Income Statement Balance Sheet

CREDIT DEBIT CREDIT
152,360
70,500
6,400
5,400
150,000
45,000
66,080
247,350
72,000
388,680

10,000

1,000
4,800

388,680 456,660 374,230

82,430
388,680 456,660 456,660
 RH Consulting Services d.)
Income Statement
Year Ended June 30, CY

Consulting fees 388,680

Less: Expenses
Salary Expense 139,600
Advertising Expense 12,000
Rent Expense 60,000
Taxes and Licences 16,900
Utilities Expense 31,250
Miscelneous Expense 13,650
Insurance Expense 5,400
Supplies Expense 12,450
Depreciation Expense 15,000
Net Profit 82,430
 RH Consulting Services e.)
Statement of Owner's Equity
Year Ended June 30, CY

Beg. Capital 207,350

Add: Additional Investment 40,000
NP 82,430 122,430
Total 329,780
Less: Drawing 72,000
Ending Capital 257,780
 RH Consulting Services
Balance Sheet
Dec. 31, CY
ASSETS LIABILITIES
Cash 152,360 Accounts Payable
Accounts Receivable 70,500 Rent Payable
Office Supplies 6,400 Advertising Payable
Prepaid Insurance 5,400 Unearned Consulting Fees
Furniture and Equipment 150,000 TOTAL
Accumulated Depreciation 45,000 105,000
OWNER'S EQUITY
R. Harris Capital
TOTAL 339,660 TOTAL
 f.)
CLOSING ENTRIES

1 Consulting Fees 388,680

Income and Expense Summary 388,680
66,080 2 Income and Expense Summary 306,250
10,000 Salary Expense 139,600
1,000 Advertising Expense 12,000
4,800 Rent Expense 60,000
81,880 Taxes and Licences 16,900
Utilities Expense 31,250
Miscelneous Expense 13,650
257,780 Insurance Expense 5,400
339,660 Supplies Expense 12,450
Depreciation Expense 15,000
3 Consulting Fees 82,430
R. Harris Drawing 82,430
4 R. Harris Drawing 10,430
R. Harris Capital 10,430
g.) RH Consulting Services
Post-Closing Trial Balance
June 30, CY

ACCOUNTS Debit Credit

Cash 152,360
Accounts Receivable 70,500
Office Supplies 6,400
Prepaid Insurance 5,400
Furniture and equipment 150,000
Accumulated Deprecation 45,000
Accounts Payable 66,080
Rent Payable 10,000
Advertising Payable 1,000
Unearned Consulting Fees 4,800
R. Harris Capital 257,780
TOTAL 384,660 384,660
a.)
ADJUSTING JOURNAL ENTRIES

1 Professional Fees 1/3X10200 3,400

Unearned Professional Fees 3,400
2 Depreciation Expense 22,500
Accumulated Depreciation 22,500
200,000/10=20,000
50,000/10=5000X1/2=2500
3 Rent Expense 36,000
Prepaid Rent 36,000
4 Prepaid Insurance 1,500
Insurance Expense 1,500
5 Advertising Expense 1,200
Advertising Payable 1,200
6 Supplies Expense 10,650
Office Supplies 10,650

s
 Trial Balance
ACCOUNTS DEBIT CREDIT
Cash 62,350
Accounts Receivable 40,780
Prepaid Rent 39,000
Office Supplies 13,600
Furniture and equipment 250,000
Accumulated Deprecation 40,000
Accounts Payable 36,250
Alex Zamora Drawing 54,000
Alex Zamora Capital 186,760
Professional Fees 438,800
Salary Expense 165,800
Advertising Expense 5,500
Insurance Expense 7,500
Travel Expense 25,950
Utilities Expense 24,700
Miscelaneous Expense 12,630
TOTALS 701,810 701,810
Unearned Professional Fees
Depreciation Expense
Rent Expense
Prepaid Insurance
Advertising Payable
Supplies Expense
TOTALS
Profit
TOTALS
 AZ law Office
Trial Balance
Year Ended Dec. 31, CY

Adjusted
Adjustments Trial Balance Income Statement
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
62,350
40,780
3) 36,000 3,000
6) 10,650 2,950
250,000
2) 22,500 62,500
36,250
54,000
186,760
1) 3,400 435,400 435,400
165,800 165,800
5) 1,200 6,700 6,700
4) 1,500 6,000 6,000
25,950 25,950
24,700 24,700
12,630 12,630

1) 3,400 3,400
2) 22,500 22,500 22,500
3) 36,000 36,000 36,000
4) 1,500 1,500
5) 1,200 1,200
6) 10,650 10,650 10,650
75,250 75,250 725,510 725,510 310,930 435,400
124,470
435,400 435,400
 AZ law Office
c.) Income Statement
Year Ended Dec. 31, CY
Balance Sheet
DEBIT CREDIT Profession Fees
62,350 Less: Expenses
40,780 Salary Expense 165,800
3,000 Advertising Expense 6,700
2,950 Insurance Expense 6,000
250,000 Travel Expense 25,950
62,500 Utilities Expense 24,700
36,250 Miscelaneous Expense 12,630
54,000 Depreciation Expense 22,500
186,760 Rent Expense 36,000
Supplies Expense 10,650
Profit

3,400

1,500
1,200

414,580 290,110
124,470
414,580 414,580
 AZ law Office d.) AZ Law Office
Income Statement Statement of Owner's Equity
Year Ended Dec. 31, CY Year Ended Dec. 31, CY

435,400 Beg. Capital

Add: Additional Investment 50,000
Profit 124,470
TOTAL
Less: Drawing
Ending Capital

310,930
124,470
AZ Law Office e.)
ent of Owner's Equity
Ended Dec. 31, CY

136,760 ASSETS
Cash 62,350
175,070 Accounts Receivable 40,780
311,830 Prepaid Rent 3,000
54,000 Office Supplies 2,950
257,830 Prepaid Insurance 1,500
Furniture and equipment 250,000
Accumulated Deprecation 62,500 187,500
TOTAL 298,080
AZ Law Office f.
Balance Sheet
Dec. 31, CY
1
LIABILITIES
Accounts Payable 36,250 2
Unearned Professional Fees 3,400
Advertising Payable 600
TOTAL 40,250

Owner's Equity
A. Zamora Capital 257,830
TOTAL 298,080

4
 g.
Closing Entries

Professional Fees 435,400

Income and Expense Summary 435,400
Income and Expense Summary 310,330
Salary Expense 165,800
Advertising Expense 6,100
Insurance Expense 6,000
Travel Expense 25,950
Utilities Expense 24,700
Miscelaneous Expense 12,630
Depreciation Expense 22,500
Rent Expense 36,000
Supplies Expense 10,650
Income and Expense Summary 125,070
A. Zamora Drawing 125,070
A. Zamora Drawing 71,070
A. Zamora Capital 71,070
 AZ Law Office
Post-Closing Trial Balance
Dec. 31, CY

ACCOUNTS DEBIT CREDIT

Cash 62,350
Accounts Receivable 40,780
Prepaid Rent 3,000
Prepaid Insurance 1,500
Office Supplies 2,950
Furniture and equipment 250,000
Accumulated Deprecation 62,500
Accounts Payable 36,250
Unearned Professional Fees 3,400
Advertising Payable 600
A. Zamora Capital 257,830
TOTAL 360,580 360,580
a.) ACE Hardware Company
Income Statement
Year Ended Dec. 31, CY

Sales 1,950,345
Less: Sales Discount 24,820
Net Sales 1,925,525
C/S:
Beg. Inventory 715,250
Purchases 1,320,500
Transportation-in 30,875
Gross 1,351,375
Purchase Return 2,585
Purchase Discount 20,000 22,585 1,328,790
GAS 2,044,040
Ending Inventory 785,345 1,258,695
Gross Profit 666,830
Less: Expenses
Advertising Expense 18,000
Transportation-out 12,260
Depreciation Store Equipment 12,000
Miscelaneous Selling Expense 17,650
Office Salary Expense 65,900
Rent Expense 48,000
Taxes and Licenses 6,750
Miscellaneous General Expense 600
Impairment Loss 2,515
Insurance Expense 9,000
Supplies Expense 8,650
Depreciation Office Equipment 6,000 322,925
Net Profit from operation 343,905
Interest Expense 6,000
Net Profit 337,905
a.) ACE hardware Company
Income Statement
Year Ended Dec. 31, CY

Net Sales 1,925,525

Net Purchases -1,328,790
Income in Merchandise Inventory 70,095
Depreciation Expense -18,000
Operating Expense -304,925
Interest Expense -6,000
Net Profit 337,905
b.) ACE hardware Company c.)
Statement of Owner's Equity
Year Ended Dec. 31, CY

Beg. Capital 486,135

Add: Additional Investment 30,000
NP 337,905 367,905
Total 854,040
Less: Drawings 48,000
Beg. Capital 486,135
Add: Additional Investment 30,000
NP 337,905 367,905
Total 854,040
Less: Drawings 48,000
Ending Capital 806,040
 ACE hardware Company
Balance Sheet
Dec. 31, CY

ASSETS LIABILITIES
Current Assets: Current-Liabilities
Cash 130,115 Accounts Payable
Notes Receivable 30,000 Notes Payable
Accounts Receivable 125,750 Vat Payable

Merchandise Inventory 785,345 Non-Current Liabilities

Prepaid Insurance 6,000 Notes Payable
Office Supplies 3,750 Total Liabilities
Total 1,076,125
Non-Current Assets
Store Equipment 120,000
Accumulated Depreciation 36,000
84,000
Office Equipment 60,000 Owner's Equity
42,000 126,000 Ace Zamora Capital
Total 1,202,125 Total
 d.) CLOSING ENTRIES

1 Merchandise Inventory End 785,345

Income and Expense Summary 785,345
2 Income and Expense Summary 2,420,370
Beg. Inventory 715,250
335,535 Purchases 1,320,500
10,000 Sales Discount 24,820
10,550 Transportation in 30,875
Sales Salary 115,600
Advertising Expense 18,000
40,000 Transportation Out 12,260
396,085 Miscelaneous Selling Expense 17,650
Office Salary Expense 65,900
Rent Expense 48,000
Taxes and Licenses 6,750
Miscelaneous General Expense 600
Interest Expense 6,000
Insurance Expense 9,000
806,040 Supplies Expense 8,650
1,202,125 Depreciation Store Equipment 12,000
Depreciation Office Equipment 6,000
3 Sales 1,950,345
Purchase Return 2,585
Purchase Discount 20,000
Income and Expense Summary 1,972,930
4 Income and Expense Summary 337,905
Ace Zamora Drawing 337,905
5 Ace Zamora Drawing 289,905
Ace Zamora Capital 289,905
e.) ACE hardware Company
Post-Closing Trial Balance
Dec. 31, CY

ACCOUNTS DEBIT CREDIT

Cash 130,115
Notes Receivable 30,000
Accounts Receivable 125,750
Allow. For Impairment Loss 4,835
Merchandise Inventory
Prepaid Insurance 6,000
Office Supplies 3,750
Store Equipment 120,000
Accumulated Depreciation 36,000
Office Equipment 60,000
Accumulated Depreciation 18,000
Accounts Payable 335,535
Notes Payable 50,000
Vat Payable 10,550
Ace Zamora Capital 806,040
1,260,960 1,260,960
a.) ADJUSTING JOURNAL ENTRIES

1 Merchandise Inventory 1,325,425

Income and Expense Summary 1,325,425
2 Sales Salary Expense 15,000
Office Salary Expense 10,000
Rent Expense 6,000
Advertising Expense 2,000
Accrued Sundry Payables 33,000
3 Interest Receivable 1,500
Interest Income 1,500
4 Supplies Expense 18,340
Office Supplies 18,340
5 Insurance Expense 16,500
Prepaid Insurance 16,500
6 Depreciation Expense S/E 25,000
Accumulated Depreciation S/E 25,000
7 Depreciation Expense O/E 9,000
Accumulated Depreciation O/E 9,000
8 Impairment Loss 22,905
Allowance for Impairment Loss 22,905
9 VAT Output Tax 37,660
Vat Input Tax 24,025
VAT Payable 13,635
b.)

Trial Balance
ACCOUNTS DEBIT CREDIT
Cash 435,785
Notes Receivable 75,000
Accounts Receivable 265,870
Allowance for Impairment Loss 5,650
Merchandise Inventory-Jan 1 1,268,400
Prepaid Insurance 31,500
Office Supplies 23,725
VAT Input Tax 24,025
Store Equipment 250,000
Accumulated Depreciation S/E 25,000
Office Equipment 90,000
Accumulated Depreciation O/E 9,000
Accounts Payable 575,060
Notes Payable 150,000
Vat Output Tax 37,660 9
V. Cielo Capital 786,545
V. Cielo Drawing 72,000
Sales 4,580,950
Sales Return 54,675
Sales Discount 60,350
Purchases 2,720,950
Purchase Return 32,840
Purchase Discount 50,250
Transportation in 65,850
Sales Salary 271,125 2
Advertising Expense 22,000 2
Transportation out 36,760
Miscellaneous Selling Expense 70,175
Office Salary Expense 258,600 2
Rent Expense 90,000 2
Taxes and Licenses 25,940
Miscellaneous General Expense 17,725
Interest Income 1,500
Interest Expense 24,000 3
Totals 6,254,455 6,254,455
Merchandise Inventory-Dec 31
Accrued Sundry Payable
Accrued Interest Payable
Supplies Expense 4
Insurance Expense 5
Department Store Equipment 6
Department office Equipment 7
Impairment Loss 8
VAT Payable 9
TOTALS
 Venus Trading Company
WorkSheet
Year Ended Dec. 31 CY

Adjusted
Adjustments Trial Balance Income Statement
DEBIT CREDIT DEBIT CREDIT DEBIT
435,785.00
75,000.00
265,870.00
8 22,905 28555
1,268,400.00 1,268,400
5 16,500 15,000.00
4 14,325 9,400.00
9 24,025 -
250,000.00
6 25,000 50000
90,000.00
7 9,000 18000
575,060
150,000
37,660
786,545
72,000.00
4,580,950
54,675.00 54,675
60,350.00 60,350
2,720,950.00 2,720,950
32,840
50,250
65,850.00 65,850
15,000 286,125.00 286,125
2,000 24,000.00 24,000
36,760.00 36,760
70,175.00 70,175
10,000 268,600.00 268,600
6,000 96,000.00 96,000
25,940.00 25,940
17,725.00 17,725
1500
1,500 25,500.00 25,500

1,325,425.00
2 33,000 33000
3 1,500 1500
14,325 14,325.00 14325
16,500 16,500.00 16500
25,000 25,000.00 25000
9,000 9,000.00 9000
 22,905 22,905.00 22905
13,635 13635
159,890 159,890 7,647,260.00 6321835 5,108,780
882185
5990965
 c.)

Income Statement Balance Sheet

CREDIT DEBIT CREDIT
435,785
75,000
265,870
28,555

15,000
9,400
-
250,000
50,000
90,000
18,000
575,060
150,000

786,545
72,000
4,580,950

32,840
50,250

1,500

1,325,425 1,325,425
33,000
1,500
 13,635
5,990,965 2,538,480 1,656,295
882,185
5,990,965 2,538,480 2,538,480
 d.)

Venus Trading Company

Income Statement
Year Ended Dec. 31 CY

Sales 4,580,950
Less:Sales Return 54,675
Sales Discount 60,350 115,025
Net Sales 4,465,925
Less Cost of Sales:
Beg. Inventory 1,268,400
Purchases 2,720,950
Transportation in 65,850
Gross 2,786,800
Purchase Return 32,840
Purchase Discount 50,250 83,090 2,703,710
GAS 3,972,110
Ending Inventory 1,325,425 2,646,685
Gross Profit 1,819,240
Less: Expenses
Sales Salary 286,125
Advertising Expense 24,000
Transportation out 36,760
Miscellaneous Selling Expense 70,175
Office Salary Expense 268,600
Rent Expense 96,000
Taxes and Licenses 25,940
Miscellaneous General Expense 17,725
Supplies Expense 14,325
Insurance Expense 16,500
Department S/E 25,000
Department O/E 9,000
Impairment loss 22,905 913,055
NP from operations 906,185
Interest Expense 25,500
Interest Income 1,500 24,000
Net Profit 882,185
 e.)

Venus Trading Company

Statement of Owner's Equity
Year Ended Dec. 31 CY

Beg. Capital 686,545

Add: Additional Investement 100,000
NP 882,185 982,185
Total 1,668,730
Less: Drawing 72,000
Ending Capital 1,596,730
 Venus Trading Company
Balance Sheet
Dec. 31, CY
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash 435,785 Accounts Payable
Notes Receivable 75,000 Notes Payable
Accounts Receivable 265,870 Vat Payable
Allowance For Impairment Loss 28,550 237,315 Accrued Sundry Payable
Merchandise 1,325,425 Accrued Interest Payable
Prepaid Insurance 15,000 Total
Office Supplies 9,400
Total 2,097,925 Owner's Equity
Non-Current Assets V. Cielo Capital
Store Equipment 250,000 Total
Accumulated Depreciation 50,000
200,000
Office Equipment 90,000
Accumulated Depreciation 18,000
72,000 272,000
Total 2,369,925
 f.)
Closing Entries

1 Sales 4,580,950
Purchase Return 32,840
Purchase Discount 50,250
575,060 Interest Income 1,500
150,000 Income and Expense Summary
13,635 2 Income and Expense Summary 5,108,780
33,000 Merchandise Inventory Beg.
1,500 Sales Return
773,195 Sales Discount
Purchases
Transportation In
1,596,730 Sales Salary
2,369,925 Advertising
Transportation Out
Miscellaneous Selling Expense
Office Salary Expense
Rent Expense
Taxes and Licenses
Miscellaneous General Expense
Interest Expense
Supplies Expense
Insurance Expense
Depreciation Expense S/E
Depreciation Expense O/E
Impairment Loss
3 Income and Expense Summary 882,185
V. Cielo Drawing
4 V. Cielo Drawing 810,185
V. Cielo Capital
Closing Entries g.) Venus Trading Company
Post-Closing Trial Balance
Dec. 31 CY

ACCOUNTS DEBIT CREDIT

Cash 435,785
4,665,540 Notes Receivable 75,000
Accounts Receivable 265,870
1,268,400 Allowance For Impairment Loss 28,555
54,675 Merchandise 1,325,425
60,350 Prepaid Insurance 15,000
2,720,950 Office Supplies 9,400
65,850 Store Equipment 250,000
286,125 Accumulated Depreciation 50,000
24,000 Office Equipment 90,000
36,760 Accumulated Depreciation 18,000
70,175 Accounts Payable 575,060
268,600 Notes Payable 150,000
96,000 Accrued Sundry Payable 33,000
25,940 Accrued Interest Payable 1,500
17,725 Vat Payable 13,635
25,500 V. Cielo Capital 1,596,730
14,325 TOTAL 2,466,480 2,466,480
16,500
25,000
9,000
22,905

882,185

810,185
1.)

Date Particulars PR DEBIT CREDIT

Dec. 1 Cash / 50,000
Merchandise / 30,000
C. Cifra Capital / 80,000

/ Taxes and Licenses / 3,500

Rent Expense / 12,000
Cash / 15,500

/ Office Equipment 20,000

Cash 20,000

/ Furniture and Fixtures / 137

Accounts Payable / 137

3 Purchases / 8,700
Cash / 8,700

/ Freight in / 150
Cash / 150

5 Cash / 14,000
Sales / 14,000

/ Freight out / 300

Cash / 300

7 Purchases / 28,000
Accounts Payable (LX Trading) / 10,000
Accounts Payable (Zoilo Trading) / 18,000

9 Accounts Receivable (Llamas Supermarket) / 21,000

Accounts Receivable (Rey's Grocery) / 11,000
Sales / 32,000

10 Cash / 15,000
Loans Payable / 15,000

11 Accounts Payable (LX Trading) / 10,000

Purchase Discount / 200
Cash / 9,800

14 Cash / 20,370
Sales Discount / 630
 Accounts Receivable ( Llamas Supermarket) / 2,100

15 Accounts Payable (Zoilo Trading) / 2,000

Purchase Return and Allowance / 2,000

/ Cash / 6,000
Rental Income / 6,000

/ Sales Return and Allowances / 3,000

Accounts Receivable ( Rey's Grocery) / 3,000

/ Light and Water / 2,300

Tel and Tel / 3,200
Salaries and Expense / 12,000
Advertising Expense / 4,500
Cash / 22,000

17 Accounts Receivable / 13,600

Sales (Nelson's Store) / 13,600

19 Purchases / 14,200
Accounts Payable (Baguio trading) / 14,200

22 C. Cifra Drawing / 2,000

Cash / 2,000

23 Notes Receivable / 3,000

Sales / 3,000

25 Purchases / 2,800
Notes Payable / 2,800

28 Furniture and Fixtures / 2,300

C. Cifra Capital / 2,300

29 Office Supplies Expense / 1,200

Cash / 1,200

31 Salaries Expense / 12,000

Cash / 12,000
2) & 11)
Cash Accounts Payable
50,000 15,500 10,000 13,650
14,000 20,000 2,000 10,000
15,000 8,700 EB 43850 18,000
20,370 150 14,200
6,000 300 12,000 55,850
9,800 ures
22,000 Notes Payable
2,000 2,800 2,800
1,200
12,000 Loans Payable
EB 13720 15,000 15,000
105,370 105,370
C. Cifra Capital
Notes Receivable 48,391 80,000
3,000 EB 3000 EB 33908.7 2,300
48,391 82,300
Accounts Receivable
21,000 21,000 C. Cifra Drawing
11,000 3,000 2,000 48,391
13,600 EB 21600 46,391
45,600 45,600 48,391 48,391

Merchandise Beg. Sales

30,000 EB 30000 62,600 14,000
32,000
Office Equipment 13,600
20,000 EB 20000 3,000
62,600 62,600
Furniture and Fixtures
13,650 Sales Return
2,300 EB 15950 3,000 3,000
15,950 15,950
Sales Discount
630 630

Purchases
8,700 53,700
28,000
14,200
2,800
53,700 53,700
 Freight in Merchandise Inventory End
150 150 24,000 EB 24000

Purchase Return Depreciation Office Expense

2,000 2,000 200 200

Purchase Discount Depreciation Furniture and Fixtures

200 200 137 137

Freight out Impairment Loss

300 300 626 626

Taxes and Licenses Accrued Interest Receivable

3,500 3,500 4 EB 4

Rent Expense Interest Expense

12,000 12,000 3 3

Light and Water

2,300 2,300 Prepaid Advertising
2,250
Tel and Tel
3,200 3,200 Unearned Rental Income
EB 5000
Salaries Expense
12,000 24,000 Unused Office Supplies
12,000 1,000
24,000 24,000

Advertising Expense
4,500 2,250
2,250
4,500 4,500

Office Supplies Expense

1,200 1,000
200
1,200 1,200

Rental Income
5,000 6,000
1,000
6,000 6,000
 3.)

ACCOUNTS
Accum. Depreciation O/E Cash
EB 200 200 Notes Receivable
Accounts Receivable
Accum. Depreciation F/F Merchandise
EB 136.50 137 Office Equipment
Furniture and Fixtures
Allow. For Impairment Loss Accounts Payable
EB 626 626 Notes Payable
Loan Payable
Interest Income C. Cifra Capital
4 4 C. Cifra Drawing
Sales
Accrued Interest Payable Sales Return
EB 3 3 Sales Discount
Purchases
Freight in
Prepaid Advertising Purchase Return and Allowance
EB 2,250 Purchase Discount
Freight out
Unearned Rental Income Taxes and Licenses
5,000 Rent Expense
Light and Water
Unused Office Supplies Tel and Tel
EB 1000 Salaries Expense
Advertising Expense
Office Supplies Expense
Rental Income
TOTALS
C. Cifra Merchandising 4.)
Trial Balance
Dec, 31 200E
DEBIT CREDIT Adjusting Entries
13,720 Date Particulars
3,000 Dec 31 Merchandise Inventory
21,600 Income and Salary Expense
30,000
20,000 / Depreciation Office Expense
15,950 Accum. Depreciation O/E
43,850
2,800 / Depreciation Furniture and Fixtures
15,000 Accum. Depreciation F/F
82,300
2,000 / Impairment Loss
62,600 Allow. For Impairment Loss
3,000
630 / Accrued Interest Receivable
53,700 Interest Income
150
2,000 / Interest Expense
200 Accrued Interest Payable
300
3,500 / Prepaid Advertising
12,000 Advertising Expense
2,300
3,200 / Rental Income
24,000 Unearned Rental Income
4,500
1,200 / Unused Office Supplies
6,000 Office Supplies Expense
214,750 214,750
 5.)

DEBIT CREDIT
24000 Trial Balance
24000
ACCOUNTS
200 Cash
200 Notes Receivable
Accounts Receivable
13650 Merchandise
13650 Office Equipment
Furniture and Fixtures
626 Accounts Payable
626 Notes Payable
Loan Payable
4 C. Cifra Capital
4 C. Cifra Drawing
Sales
2.8 Sales Return
2.8 Sales Discount
Purchases
2250 Freight in
2250 Purchase Return and Allowance
Purchase Discount
5000 Freight out
5000 Taxes and Licenses
Rent Expense
1000 Light and Water
1000 Tel and Tel
Salaries Expense
Advertising Expense
Office Supplies Expense
Rental Income
Totals
Merchandise Inventory End
Depreciation Office Expense
Accumulated Depreciation O/E
Depreciation Furniture and Fixtures
Accumulated Depreciation F/F
Impairment Loss
Allow. For Impairment Loss
Accrued Interest Receivable
Interest Income
Interest Expense
Accrued Interest Payable
Prepaid Advertising
Unearned Rental Income
Unused Office Supplies
TOTALS
Net Loss
TOTALS
 C. Cifra Merchandising
WorkSheet
Month Ended Dec. 31, 200E

Adjusted
Trial Balance Adjustments Trial Balance

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

13,720 13,720
3,000 3,000
21,600 21,600
30,000 30,000
20,000 20,000
15,950 15,950
43,850 43,850
2,800 2,800
15,000 15,000
82,300 82,300
2,000 2,000
62,600 62,600
3,000 3,000
630 630
53,700 53,700
150 150
2,000 2,000
200 200
300 300
3,500 3,500
12,000 12,000
2,300 2,300
3,200 3,200
24,000 24,000
4,500 7 2,250 2,250
1,200 9 1,000 200
6,000 8 5,000 1,000
214,750 214,750

2 200 200
2 200 200
3 137 137
3 137 137
4 626 626
4 626 626
5 4 4
5 4 4
6 3 3
 6 3 3
7 2,250 2,250
8 5,000 5,000
9 1,000 1,000
9,219 9,219 215,719 215,719
 6.)

Income Statement Balance Sheet

DEBIT CREDIT DEBIT CREDIT

13,720
3,000
21,600
30,000
20,000
15,950
43,850
2,800
15,000
82,300
2,000
62,600
3,000
630
53,700
150
2,000
200
300
3,500
12,000
2,300
3,200
24,000
2,250
200
1,000

1 24,000 1 24,000
200
200
137
137
626
626
4
4
3
 3
2,250
5,000
1,000
136,195 89,804 103,524 149,915
46,391 46,391
136,195 136,195 149,915 149,915
 7.)
. C. Cifra Merchandising
Income Statement
Month Ended Dec. 31 200E

Sales 62,600
Sales Return 3,000
Sales Discount 630 3,630
NetSales 58,970
Less:C/S
Beg. Inventory 30,000
Purchases 53,700
Freight In 150
Gross 53,850
Purchase Return 2,000
Purchase Discount 200 2,200 51,650
GAS 81,650
Ending Inventory 24,000 57,650
Gross Profit 1,320
Less: Operating Expenses
Freight Out 300
Taxes and Licenses 3,500
Rent Expenses 12,000
Light and Water 2,300
Tel and Tel 3,200
Salaries 24,000
Advertising Expense 2,250
Office Supplies Expense 200
Depreciation O/E 200
Depreciation F/F 137
Impairment Loss 626 48,713
Net Operating Profit -47,393
Rental Income 1,000
Interest Income 4 1,004
Total -46,389
Interest Expense 3
Net Profit 46,391
 8.)
C. Cifra Merchandising
Statement Of Owner's Equity
Monthly Ended Dec. 31, 200E

Beg. Capital 80,000

Add: Additional Investment 2,300
Total 82,300
Less: Net Loss 46,391
Drawing 2,000 48,391
Ending Capital 33,909
 C. Cifra Merchandising
Balance Sheet
Dec. 31, 200E

ASSETS
Current Assets
Cash 13,720
Notes Receivable 3,000
Accounts Receivable 21,600
Allowance For Impairment Loss 626 20,974
Merchandise 24,000
Accrued Interest Receivable 4
Prepaid Advertising 2,250
Unused Office Supplies 1,000
Total 64,948
Non Current Assets
0ffice Equipment 2,000
Accumulated Depreciation 200
19,800
Furniture and Fixtures 15,950
Accumulated Depreciation 137
15,814 35,614
Total 100,562
 g.)

a. Sales
Purchase Return
LIABILITIES Purchase Discount
Current Liabilities Rental Income
Accounts Payable 43,850 Interest Income
Notes Payable 2,800 Income and Expense Summary
Loan Payable 15,000 b. Income and Expense Salary
Accrued Interest Payable 3 Merchandise Inventory Beg.
Unearned Rental Income 5,000 Sales Return
Total 66,653 Sales Discount
Purchases
Freight In
Freight out
Taxes and Licenses
Rent Expense
Light and Water
Tel and Tel
Salaries Expense
Owner's Euity Advertising Expense
C. Cifra Capital 33,909 Office Supplies Expense
Total 100,562 Depreciation O/E
Depreciation F/F
Impairment Loss
Interest Expense
c. C. Cifra Drawing
Income and Expense Salary
d. C. Cifra Capital
C Cifra Drawing
 h.)
CLOSING ENTRIES

62,600
2,000 ACCOUNTS
200 Cash
1,000 Notes Receivable
4 Accounts Receivable
65,804 Allowance For Impairment Loss
136,195 Merchandise
30,000 Accrued Interest Receivable
3,000 Prepaid Advertising
630 Unused Office Supplies
53,700 0ffice Equipment
150 Accumulated Depreciation
300 Furniture and Fixtures
3,500 Accumulated Depreciation
12,000 Accounts Payable
2,300 Notes Payable
3,200 Loan Payable
24,000 Accrued Interest Payable
2,250 Unearned Rental Income
200 C. Cifra Capital
200 TOTAL
137
626
3
46,391
46,391
48,391
48,391
 C. Cifra Merchandising 11.)
Post-Closing Trial Balance
Dec. 31, 200E
Cash
DEBIT CREDIT Notes Receivable
13,720 Accounts Receivable
3,000 Merchandise
21,600 Accrued Interest Receivable
626 Prepaid Advertising
24,000 Unused Office Supplies
4 0ffice Equipment
2,250 Furniture and Fixtures
1,000 Allow. For Impairment Loss
20,000 Accum. Depreciation O/E
200 Accum. Depreciation F/F
15,950 Accounts Payable
137 Notes Payable
43,850 Loan Payable
2,800 Accrued Interest Payable
15,000 Unearned Rental Income
3 C. Cifra Capital
5,000
33,909
101,524 101,524
 12.)
OPENING ENTRY REVERSING ENTRIE

13,720 a. Interest Income

3,000 Acrued Interest Receivable
21,600
24,000 b. Accrued Interest Payable
4 Interest Epense
2,250
1,000 c. Advertising Expense
20,000 Prepaid Advertising
15,950
626 d. Unearned Rental Income
200 Rental Income
137
43,850 e. Office Supplies Expense
2,800 Unused Office Supplies
15,000
3
5,000
33,909
REVERSING ENTRIES

4
4

3
3

2,250
2,250

5,000
5,000

1,000
1,000