JO

Unadjusted Trial Balance

Debit
Cash 31,000.00
Accounts Receivable 83,000.00
Merchandise Inventory 627,000.00
Prepaid Insurance 54,000.00
Office Supplies 68,000.00
Office Equipment 370,000.00
Accumulated Depreciation
Accounts Payable
Bala, Capital
Bala, Withdrawals 87,000.00
Sales
Sales Returns and Allowances 26,000.00
Sales Discounts 23,000.00
Purchases 1,512,000.00
Purchase Returns and Allowances
Purchase Discounts
Transportation In 38,000.00
Salaries Expense 327,000.00
Advertising Expense 61,000.00
Rent Expense 26,000.00
Total ₱ 3,333,000.00

Insurance Expense
Depreciation Expense
Office Supplies Expense
Salaries Payable
Doubtful Accounts Expense
Allowance for Doubtful Accounts

Net Income
Total
 JOHN BALA COMPANY
WORKSHEET

Adjustments Adjusted Trial Balance Income Statement

Credit Debit Credit Debit Credit Debit
31,000.00
83,000.00
627,000.00 627,000.00
(b) 18,000.00 36,000.00
(d) 53,000.00 15,000.00
370,000.00
50,000.00 (c ) 25,000.00 75,000.00
58,000.00 58,000.00
517,000.00 517,000.00
87,000.00
2,675,000.00 2,675,000.00
26,000.00 26,000.00
23,000.00 23,000.00
1,512,000.00 1,512,000.00
14,000.00 14,000.00
19,000.00 19,000.00
38,000.00 38,000.00
(e) 9,000.00 336,000.00 336,000.00
61,000.00 61,000.00
26,000.00 26,000.00
₱ 3,333,000.00

(b) 18,000.00 18,000.00 18,000.00

(c ) 25,000.00 25,000.00 25,000.00
(d) 53,000.00 53,000.00 53,000.00
(e) 9,000.00 9,000.00
(f) 4,150.00 4,150.00 4,150.00
(f) 4,150.00 4,150.00
2,749,150.00
490,850.00
₱ 3,371,150.00 ₱ 3,371,150.00 ₱ 3,240,000.00
Income Statement Balance Sheet
Credit Debit Credit
31,000.00
83,000.00
532,000.00 532,000.00
36,000.00
15,000.00
370,000.00
75,000.00
58,000.00
517,000.00
87,000.00
2,675,000.00

14,000.00
19,000.00

9,000.00

4,150.00
3,240,000.00 1,154,000.00 663,150.00
490,850.00
₱ 3,240,000.00 ₱ 1,154,000.00 ₱ 1,154,000.00
 Adjusting Entries
a.

b. Insurance Expense 18,000

Prepaid Insurance 18,000
To record expired insurance

c. Depreciation Expense- Office Equipment 25,000

Accumulated Depreciation- Office Equipment 25,000
To record depreciation expense for the year

d. Office Supplies Expense 53,000

Office Supplies
To record used supplies

e. Salaries Expense 9,000

Salaries Payable 9,000
To record accrued salaries

f. Doubtful Accounts Expense 4,150

Allowance for Doubtful Accounts 4,150
To record doubtful accounts of outstanding accounts receivable
 JOHN BALA COMPANY
ADJUSTED TRIAL BALANCE
31-Dec-19

Account Titles Debit Credit

Cash ₱31,000
Accounts Receivable 83,000
Allowance for Doubtful Accounts ₱ 4,150
Merchandise Inventory 627,000
Prepaid Insurance 36,000
Office Supplies 15,000
Office Equipment 370,000
Accumulated Depreciation 75,000
Accounts Payable 58,000
Salaries Payable 9,000
Bala, Capital 517,000
Bala, Withdrawals 87,000
Sales 2,675,000
Sales Returns and Allowances 26,000
Sales Discounts 23,000
Purchases 1,512,000
Purchase Returns and Allowances 14,000
Purchase Discounts 19,000
Transportation In 38,000
Salaries Expense 336,000
Advertising Expense 61,000
Rent Expense 26,000
Insurance Expense 18,000
Depreciation Expense 25,000
Supplies Expense 53,000
Doubtful Accounts Expense 4,150
Total ₱ 3,371,150 ₱ 3,371,150
 JOHN BALA COMPANY
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED DECEMBER 31,2019

Net Sales
Gross Sales 2,675,000
Less: Sales Returns and Allowances 26,000
Sales Discounts 23,000 49,000 2,626,000
Cost of Sales
Merchandise Inventory, 1/1/19 627,000
Add: Purchases 1,512,000
Transportation In 38,000
Cost of Goods Delivered 1,550,000
Less: Purchase Returns and Allowances 14,000
Purchase Discounts 19,000 33,000 1,517,000
Goods Available for Sale 2,144,000
Less: Merchandise Inventory, 12/31/19 532,000 1,612,000
Gross Profit 1,014,000
Operating Expenses
Distribution Expense
Salaries Expense 336,000
Advertising Expense 61,000
Rent Expense 26,000 423,000
General and Administrative Expense
Office Supplies Expense 53,000
Insurance Expense 18,000
Doubtful Accounts Expense 4,150
Depreciation Expense 25,000 100,150 523,150
Net Income ₱490,850
 JOHN BALA COMPANY
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2019

Bala, Capital, 1/1/19 ₱ 517,000

Add: Net Income 490,850
Total 1,007,850
Less: Bala Withdrawals 87,000
Bala, Capital, 12/31/19 ₱ 920,850
 JOHN BALA COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF THE YEAR ENDED DECEMBER 31, 2019

ASSETS
Current Assets
Cash 81,000
Accounts Receivable 83,000
Less: Allowance for Doubtful Accounts 4,150 78,850
Merchandise Inventory 532,000
Prepaid Insurance 36,000
Office Supplies 15,000
Total Current Assets 692,850
Non-Current Assets
Office Equipment 370,000
Less: Accumulated Depreciation 75,000 295,000
Total Assets ₱ 987,850

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Accounts Payable 58,000
Salaries Payable 9,000
Total Liabilities 67,000

Owner's Equity
Bala, Capital 920,850
Total Liabilities and Owner's Equity ₱ 987,850
Closing Entries

Date Account Titles and Explanation Debit Credit

2019
Dec. 31 Merchancise Inventory, 12/31/19 532,000
Sales 2,675,000
Purchase Returns and Allowances 14,000
Purchase Discounts 19,000
Income Summary 3,240,000
To close the temporary accounts with credit balances

31 Income Summary 2,226,000

Merchandise Inventory, 1/1/19 627,000
Sales Returns and Allowances 26,000
Sales Discounts 23,000
Purchases 1,512,000
Transportation In 38,000
To record the temporary accounts with debit balances

31 Income Summary 523,150

Salaries Expense 336,000
Advertising Expense 61,000
Rent Expense 26,000
Insurance Expense 18,000
Depreciation Expense 25,000
Office Supplies Expense 53,000
Doubtful Accounts Expense 4,150
To close the expense accounts

31 Income Summary 490,850

Bala, Capital 490,850
To close the income summary account to capital

31 Bala, Capital 87,000

Bala, Withdrawals 87,000
To close the withdrawal account