Problem 3

1. Advances to officers and employees 3,000.00

Marketing and Administrative Expenses 4,500.00
Petty cash fund 7,500.00

a. Accounts Receivable 35,000.00

Cash in bank 35,000.00

b. Cash in bank 40,000.00

Accounts Receivable 40,000.00

c. no entry

d. no entry

e. Cash in bank 48,300.00

Accounts Payable 48,300.00

3. Trading Securities 20,000.00

Unrealized Gain in Trading Securities 20,000.00

4A Advances to officers and Employ 120,000.00

Accounts Receivable 120,000.00

4B Sales 625,000.00
Accounts Receivable 625,000.00

Inventories 500,000.00
Cost of Goods Sold 500,000.00

125% 625,000
100% 500,000

5
a. Inventory 26,000.00
Cost of Goods Sold 26,000.00

b. Accounts Payable 35,000.00

Cost of Goods Sold 35,000.00

c. Inventory 27,000.00
Accounts Payable 27,000.00

d. Cost of Goods Sold 22,350.00

 Accounts Payable 22,350.00

e. Sales 36,000.00
Inventory 25,000.00
Accounts Receivable 36,000.00
Cost of Goods Sold 25,000.00

Marketing and Administrative Expense 17,900.00

Allowance for uncollectible accounts 17,900.00

6. Marketing and Administrative Expense 6,250.00

Prepaid Insurance 6,250.00

13200×4/24 2200
16200×9/36 4050
6250

7A Land 1,864,000.00
Building 7,606,000.00
Other Income 30,000.00
Land and building 8,600,000.00
Marketing and Administrative Expen 900,000.00

7B Marketing and Administrative Ex 163,920.00

Accumulated Depreciation-Building 147,120.00 147,120.00
Accumulated Depreciation Leasehol 16,800.00

8. Marketing and Administrative Expense 50,000.00

Accumulated Amortization- Franchise 50,000.00
500T/10

9. Marketing and Administrative Expense 72,000.00

Licensing Agreement 144,000.00
Accumulated Amortization - Licensing Agreement 216,000.00

10. a. Accounts Payable-Delon 126,000.00

Accounts Payable-De Leon 126,000.00

b. Marketing and Administrative Expense 50,800.00

Accrued Expense 50,800.00

11 Other income 130,000.00

Unearned Revenue 130,000.00

12 Interest Expense 200,000.00

Interest Payable 200,000.00
 Mortgage Payable 500,000.00
Current Portion of long term debt 500,000.00

13 Interest Expense 187,800.00

Interest payable 180,000.00
Discount on Bonds Payable 7,800.00

14 Income Tax payable 127,126.00

Income Tax Expense 127,126.00
diretso intangible!!
be consistent!!
 Karkits Corporation
Working Trial Balance
For the year Ended December 31, 2014

Trial Balance Audit Adjustments

Account Titles Debit Credit Debit
Cash in Bank 243,600.00 88,300.00
Petty Cash Fund 15,000.00
Acccounts Receivable 3544000 35000
Allowance for uncollectible Accounts 120,000.00
Inventories 4,398,900.00 578,000.00
Trading securities 330,000.00 20,000.00
Advances to officers and Employees - 123,000.00
Prepaid Insurance 29,400.00
Property, Plant and Equipment (cost ) 10,945,000.00
Accumulated Depreciation 703,500.00
Franchises 500,000.00
Licensing Agreement 216,000.00 144,000.00
Accounts Payable 2,141,550.00 35,000.00
Interest Payable -
Accrued Expenses 598,020.00
Unearned Revenues -
Income Taxes Payable 193,365.00 127,126.00
Dividends Payable 1,250,000.00
Current Portion of Long Term Debt -
Mortgage Payable 2,000,000.00 500,000.00
Bonds Payable 2,000,000.00
Discount on Bonds Payable 122,000.00
Ordinary Share Capital 5,000,000.00
Additional Paid in Capital 1,350,000.00
Retained Earnings 2,867,840.00
Sales 32,250,000.00 661,000.00
Cost of Goods Sold 18,169,950.00 22,350.00
Marketign and Administrative Expenses 8,900,400.00 368,250.00
Other Income 180,000.00 160,000.00
Interest Expense 404,320.00 387,800.00
Income Tax Expense 1,585,705.00
Dividends Declared 1,250,000.00
50,654,275.00 50,654,275.00

Expenses
Unrealized Gain in Trading Securities
Land 1,864,000.00
Building 7,606,000.00
Land and Building
Accumulated Depreciation-Building
Accumulated Depreciation Leasehold Improvements
Accumulated Amortization- Franchise

Accumulated Amortization- Licensing Agreement

Accounts Payable-Delon 126,000.00
Accounts Payable - De Leon
12,845,826.00
Income Before Income Tax
 Karkits Corporation
Working Trial Balance
e year Ended December 31, 2014

Audit Adjustments Profit or Loss Financial Position

Credit Debit Credit Debit Credit
35,000.00 296,900.00
7,500.00 7,500.00
821000 2758000
17,900.00 137,900.00
4,976,900.00
350,000.00
123,000.00
6,250.00 23,150.00
10,945,000.00
703,500.00
500,000.00
360,000.00
97,650.00 2,204,200.00
380,000.00 380,000.00
50,800.00 648,820.00
130,000.00 130,000.00
66,239.00
1,250,000.00
500,000.00 500,000.00
1,500,000.00
2,000,000.00
7,800.00 114,200.00
5,000,000.00
1,350,000.00
2,867,840.00
31,589,000.00
586,000.00 17,606,300.00
900,000.00 8,368,650.00
20,000.00
792,120.00
127,126.00 1,458,579.00
1,250,000.00

20,000.00 20,000.00
1,864,000.00
7,606,000.00
8,600,000.00 8,600,000.00
150,000.00 150,000.00
16,800.00 16,800.00
 50,000.00 50,000.00

216,000.00 216,000.00
126,000.00
126,000.00 126,000.00
12,845,826.00 29,475,649.00 31,629,000.00 30,050,650.00 27,897,299.00
2,153,351.00 2,153,351.00
31,629,000.00 31,629,000.00 30,050,650.00 30,050,650.00
 Trial Balance Audit Adjustments
Account Titles Debit Credit Debit Credit
Petty Cash Fund 15,000.00 1,500.00
Cash in Bank 243,600.00 88,300.00
Trading securities 330,000.00 60,000.00
Acccounts Receivable 3,544,000.00 35,000.00 821,000.00
Allowance for uncollectible Accounts 120,000.00
Advances to officers and Employees - 120,000.00
Inventories 4,398,900.00 587,000.00
Prepaid Insurance 29,400.00 6,250.00
Property, Plant and Equipment (cost ) 10,945,000.00
Accumulated Depreciation 703,500.00
Franchises 500,000.00 50,000.00
Licensing Agreement 216,000.00
Accounts Payable 2,141,550.00 75,300.00
Interest Payable - 380,000.00
Accrued Expenses 598,020.00 50,800.00
Unearned Revenues - 130,000.00
Income Taxes Payable 193,365.00 127,126.00
Dividends Payable 1,250,000.00
Current Portion of Long Term Debt - 500,000.00
Mortgage Payable 2,000,000.00 500,000.00
Bonds Payable 2,000,000.00
Discount on Bonds Payable 122,000.00 7,800.00
Ordinary Share Capital 5,000,000.00
Additional Paid in Capital 1,350,000.00
Retained Earnings 2,867,840.00
Sales 32,250,000.00 661,000.00
Cost of Goods Sold 18,169,950.00 535,000.00
Marketign and Administrative Expenses 8,900,400.00 100,800.00
Other Income 180,000.00 130,000.00
Interest Expense 404,320.00 387,800.00
Income Tax Expense 1,585,705.00 127,126.00
Dividends Declared 1,250,000.00
50,654,275.00 50,654,275.00

Expenses 1,500.00
Unrealized Gain in Trading Securities 60,000.00
Insurance Expense 6,250.00
Accounts Payable-Dela Cruz 126,000.00
Accounts pPayable - De Leon 126,000.00
2,930,776.00 2,870,776.00
 Profit or Loss Financial Position
Debit Credit Debit Credit