Adjusting Entries

A. Income and Expense Summary 35000

Merchandise Inventory 35000

Merchandise Inventory 40000

Income and Expense Summary 40000

B. Office Supplies Expense 2700

Office Supplies 2700

C. Store Supplies Expense 2000

Store Supplies 2000

D. Insurance Expense 4500

Prepaid Insurance 4500

E. Prepaid Interest 200

Interest Expense 200

F. Unearned Rent Income 10000

Rent Income 10000

G. Unearned Interest Income 300

Interest Income 300

H. Interest Receivable 1000

Interest Income 1000

I. Doubtful Account Expense 250

Allowance for Doubtful Accounts 250

J. Depreciation Expense - Office Equipment 1000

Depreciation Expense - Store Equipment 2000
Accumulated Depreciation - Office Equipment 1000
Accumulated Depreciation - Store Equipment 2000

K. Salaries Expense 1000

Salaries Payable 1000

L. Interest Expense 100

Interest Payable 100

M. Advertising Expense 5000

Prepaid Advertising 5000
 Closing Entries
A. Income and Expense Summary 166850
Sales Returns and Allowance 20000
Sales Discount 6000
Purchase 100000
Transportation In 4000
Transportation Out 10000
Salaries Expense 8500
Advertising Expense 5000
Depreciation Expense - Office Equipment 1000
Depreciation Expense - Store Equipment 2000
Office Supplies Equipment 2700
Store Supplies Equipment 2000
Doubtful Accounts Expense 250
Insurance Expense 4500
Interest Expense 900

B. Sales 175000
Purchase Returns and Allowance 10000
Purchase Discount 5000
Interest Income 1300
Rent Income 10000
Income and Expense Summary 201300

C. P. Capital 3000
P. Withdrawal 3000

D. Income and Expense Summary 39450

P. Capital 39450
 Priority Store
Income Statement
For the Year Ended Dec 31, 2015

Sales
Less: Sales Returns and Allowance 20000
Sales Discount 6000
Net Sales
Less: Cost of Sales
Merchandise Inventory 01/01/2015 35000
Add: Purchase 100000
Less: Purchase Returns and Allowance 10000
Purchase Discount 5000 15000
Net Purchase 85000
Add: Transportation In 4000
Net Cost of Purchase 89000
Less: Merchandise Inventory 12/31/2015 40000
Total Cost of Sales
Gross Profit
Add: Interest Income 1300
Rent Income 10000
Total
Less: Operating Expense
Selling Expense
Transportation Out 10000
Advertising Expense 5000
Depreciation Expense - Store Equipment 2000
Store Supplies Expense 2000
Total Selling Expense 19000
General Expense
Salaries Expense 8500
Depreciation Expense - Office Equipment 1000
Office Supplies Expense 2700
Doubtful Accounts Expense 250
Insurance Expense 4500
Total General Expense 16950
Total Operating Expense
Operating Profit
Less: Interest Expense
Profit

Statem
 Assets
Current Assets
Cash
Petty Cash
Accounts Receivable 15000
Less: Allowance for Doubtful Accounts 2250
Notes Receivable
Interest Receivable
Merchandise Inventory
Office Supplies
Store Supplies
Prepaid Insurance
Prepaid Advertising
Prepaid Interest
Total Current Assets
Non-Current Assets
Office Equipment 10000
Less: Accumulated Depreciation - Office Equipment 2000
Store Equipment 20000
Less: Accumulated Depreciation - Store Equipment 4000
Total Non-Current Assets
Total Assets
 Priority Store
Statement of Changes in Equity
For the Year Ended Dec 31, 2015

175000 P. Capital, Owner's Equity, 1/1/2015 55000

Add: Profit 39450
26000 Total 94450
149000 Less: Withdrawals 3000
P. Capital, Owner's Equity, 12/31/2015 91450

84000
65000

11300
76300

35950
40350
900
39450

Priority Store
Statement of Financial Position
Dec 31, 2015
 Liabilities
Current Liabilities
28000 Accounts Payable 2000
2000 Notes Payable 17000
Salaries Payable 1000
12750 Interest Payable 100
20000 Total Current Liabilities 20100
1000
40000 Non-Current Liabilities
300 Mortgage Payable 20000
3000 Unearned Rent Income 2000
1500 Unearned Interest Income 200
1000 Total Non-Current Liabilities 22200
200 Total Liabilities
109750

8000

16000 Owner's Equity

24000 P. Capital, Owner's Equity, 12/31/2015
133750 Total Liabilites and Owner's Equity
 42300

91450
133750
 Adjusting Entries
A. Income and Expense Summary 627000
Merchandise Inventory 627000

Merchandise Inventory 532000

Income and Expense Summary 532000

B. Insurance Expense 18000

Prepaid Insurance 18000

C. Depreciation Expense 25000

Accumulated Depreciation 25000

D. Office Supplies Expense 53000

Office Supplies 53000

E. Salaries Expense 9000

Salaries Payable 9000
 John Bala Maps
Income Statement
For the Year Ended Dec 31, 2015

Sales 2675000
Less: Sales Returns and Allowance 26000
Sales Discount 23000 49000
Net Sales 2626000
Less: Cost of Sales
Merchandise Inventory 01/01/2015 627000
Add: Purchase 1512000
Less: Purchase Returns and Allowance 14000
Purchase Discount 19000 33000
Net Purchase 1479000
Add: Transportation In 38000
Net Cost of Purchase 1517000
Less: Merchandise Inventory 12/31/2015 532000
Total Cost of Sales 1612000
Gross Profit 1014000
Less: Operating Expense
Selling Expense
Advertising Expense 61000
General Expense
Salaries Expense 336000
Rent Expense 26000
Office Supplies Expense 53000
Depreciation Expense 25000
Insurance Expense 18000
Total General Expense 458000
Total Operating Expense 519000
Profit 495000

John Bala Maps

Statement of Financial Positio
Dec 31, 2015

Assets
Current Assets
Cash 31000
Accounts Receivable 83000
Merchandise Inventory 532000
Office Supplies 15000
Prepaid Insurance 36000
Total Current Assets 697000
Non-Current Assets
Office Equipment 370000
Less: Accumulated Depreciation 75000
Total Non-Current Assets 295000
Total Assets 992000
 John Bala Maps
Statement of Changes in Equity
For the Year Ended Dec 31, 2015

Bala, Capital, Owner's Equity, 1/1/2015 517000

Add: Profit 495000
Total 1012000
Less: Withdrawals 87000
Bala, Capital, Owner's Equity, 12/31/2015 925000

John Bala Maps

ement of Financial Position
Dec 31, 2015

Liabilities
Current Liabilities
Accounts Payable 58000
Salaries Payable 9000
Total Liabilities 67000

Owner's Equity
Bala, Capital,Owner's Equity, 12/31/2015 925000
Total Liabilities and Owner's Equity 992000
 Adjusting Entries
A. Salary Expense 30000
Salary Payable 30000

B. Rent Expense 100000 Sales

Prepaid Rent 100000 Less:
Net Sales
C. Depreciation Expense - Shop Equipment 200000 Less: Cost of Sales
Accumulated Depreciation - Shop Equipment 200000 Merchandise Inventory 01/01
Add: Purchase
D. Income and Expense Summary 700000 Less:
Merchandise Inventory 700000 Net Purchase
Add: Transportation In
Merchandise Inventory 500000 Net Cost of Purchase
Income and Expense Summary 500000 Less: Merchandise Inventory 1
Total Cost of Sales
Gross Profit
Less: Operating Expense
Selling Expense

Total Selling Expense

General Expense

Total General Expense

Total Operating Expense
Profit

Current Assets

Total Current Assets

Non-Current Assets
Total Non-Current Assets
Total Assets
 Dores Marie Pateno Hobby Shop
Income Statement
For the Year Ended Dec 31, 2015

2900000
Sales Discount 100000
2800000
Less: Cost of Sales
Merchandise Inventory 01/01/2015 700000
Add: Purchase 800000
Purchase Returns and Allowance 200000
Net Purchase 600000
Add: Transportation In 100000
Net Cost of Purchase 700000
Less: Merchandise Inventory 12/31/2015 500000
Total Cost of Sales 900000
Gross Profit 1900000
Less: Operating Expense
Selling Expense
Advertising Expense 150000
Depreciation Expense - Shop Equipment 200000
Total Selling Expense 350000
General Expense
Salaries Expense 430000
Utilities Expense 100000
Supplies Expense 50000
Rent Expense 100000
Total General Expense 680000
Total Operating Expense 1030000
870000

Dores Marie Pateno Hobby Shop

Statement of Financial Position
Dec 31, 2015

Assets
Current Assets
Cash 100000
Accounts Receivable 500000
Merchandise Inventory 500000
Prepaid Rent 200000
Total Current Assets 1300000
Non-Current Assets
Shop Equipment 1600000
Less: Accumulated Depreciation - Shop Equipment 400000
Total Non-Current Assets 1200000
Total Assets 2500000
 Dores Marie Pateno Hobby Shop
Statement of Changes in Equity
For the Year Ended Dec 31, 2015

Pateno. Capital, Owner's Equity, 1/1/2015 1300000

Add: Profit 870000
Total 2170000
Less: Withdrawals 100000
Pateno. Capital, Owner's Equity, 12/31/2015 2070000

teno Hobby Shop

inancial Position
1, 2015

Liabilities
Current Liabilities
Accounts Payable 400000
Salaries Payable 30000
Total Liabilities 430000
 Owner's Equity
Pateno, Capital,Owner's Equity, 12/31/2015 2070000
Total Liabilities and Owner's Equity 2500000