A.

ELABORATE

Direction: From this adjusted trial balance of MICS Store as of December 31, 20XX,
extend amounts to the income statement columns and the balance sheet columns.
Determine the net income or loss.

Income
Adjusted Balances Balance Sheet
Statement
Accounts Titles Dr. Cr. Dr. Cr. Dr. Cr.

Cash in bank 1,182,000.00

Accounts Receivable 636,000.00

Allowances for Bad Debts 36,000.00

Prepaid Insurance 24,000.00

Office Equipment 300,000.00

Interest Payable 15,000.00

Accounts Payable 240,000.00

Loans Payable 1,500,000.00

MICS, Capital 1,220,000.00

MICS, Drawings 200,000.00

Sales 2,500,000.00

Sales Discounts 20,000.00

Purchases 1,400,000.00

Freight-In 80,000.00

Purchase Discount 25,000.00

Purchase Returns 70,000.00

Salaries and Wages 360,000.00

Taxes and Licenses 100,000.00

Light and Water 150,000.00

Repair and Maintenance 75,000.00

Insurance Expense 8,000.00

Depreciation Expense 30,000.00

Bad Debts Expense 36,000.00

Interest Expense 15,000.00

5,636,000.00 5,636,000.00

B. EVALUATE

On December 31, 20XX, the accounts and their balances in the general ledger of Miguel
Merchandising and the list of inventories appear as shown below:

MIGUEL MERCHANDISING
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 20XX
Cash 200,000
Accounts Receivable 600,000
Merchandise Inventory 700,000
Prepaid Rent 400,000
Shop Equipment 2,700,000
Accumulated Depreciation 200,000
Accounts Payable 400,000
Miguel, Capital 2,300,000
Miguel, Drawings 200,000
Sales 3,900,000
Sales Discounts 200,000
Purchases 900,000
Purchase Returns and Allowances 200,000
Freight-In 200,000
Salaries Expense 400,000
Advertising Expense 250,000
Utilities Expense 200,000
Supplies Expense 50,000 .
Totals P7,000,000 P7,000,000

Additional Information:
a. Accrued salaries at year-end amounted to P30,000.
b. Rent in the amount of P100,000 has expired during the year.
c. Depreciation on shop equipment is P20,000.
d. The December 31 merchandise inventory amounted to P500,000.

Required:
1.Prepare the worksheet