URDANETA CITY UNIVERSITY

San Vicente West, Urdaneta City Pangasinan

College of Business Management and Accountancy

FIRST SEMESTER - A.Y. 2020-2021

Practice Set #2
Merchandising – Special Journals

The December 31, 2019 post-closing trial balance for Lindbergh

Lendl Soriano Company follows:

Lindbergh Lendl Soriano Company

Post-closing Trial Balance
December 31, 2019
Dr Cr
Cash 575,000
Accounts Receivable 250,000
Merchandise Inventory 600,000
Prepaid Advertising 45,000
Office Supplies 120,000
Land 800,000
Building 2,000,000
Accumulated Depreciation - Building 190,000
Office Equipment 600,000
Accumulated Depreciation – Office 220,000
Equipment
Accounts Payable 375,000
Notes Payable 2,000,000
Soriano, Capital 2,205,000

4,990,000 4,990,000

Accounts Receivable of P250,000 is related to a sale to Richard John

R. Sales on December 30, 2019. All credit sales are 3/10, n/30. The
Accounts Payable balance of P375,000 is attributable to a purchase
on December 27, 2019 from Floyd Alexis G. Rafanan Company. All
credit purchases are 5/10, n/30. During the month of January 2020,
the following transactions were completed:

Sold merchandise on credit to Noel C. Ramirez,

January P375,000. Invoice Number 451. Terms: FOB Destination.
4
Purchased merchandise on account from Virginia L.
4 Bongolan Company, P550,000. Invoice dated January 4.
RR Number 201. Terms: FOB Shipping Point.
 5 Paid EMF Express for freight charges of merchandise
sold to Noel C. Ramirez, P1,500. Issued Check Number
371.
Paid EMF Express for freight charges of merchandise
6 purchased from Virginia L. Bongolan Company, P2,575.
Issued Check Number 372.
Paid the amount due to Floyd Alexis G. Rafanan. Issued
6 Check Number 373.
6 Sold merchandise for cash, P420,000.
Purchased merchandise on account from Maria Desiree
8 C. Bello Company, P750,000. Invoice dated January 8.
RR Number 202. Terms: FOB Shipping Point.
Sold merchandise on credit to Jesus Remar C. Dassun,
8 P400,000. Invoice Number 452. Terms: FOB Shipping
Point.
Sold merchandise on credit to Arly N. Visperas,
8 P475,000. Invoice Number 453. Terms: FOB Destination.
Paid EMF Express freight charges of merchandise
purchased from Maria Desiree C. Bello Company,
9 P1,800, and freight charges of merchandise sold to Arly
N. Visperas, P1,600. Issued Check Number 374.
Collected the amount due from December 30 sale to
9 Richard John R. Sales. OR Number 186.
He purchased P175,000 worth of office supplies for
9 cash. Issued Check Number 375.
9 Sold merchandise for cash, P575,000.
Returned merchandise purchased from Virginia L.
11 Bongolan Company, P50,000.
Collected the amount due from Noel C. Ramirez. OR
11 Number 187.
Arly N. Visperas returned P50,000 worth of
11 merchandise purchased from Lindbergh Lend S.
Soriano.
Paid Virginia L. Bongolan Company amount due. Issued
13 Check Number 376.
Purchased merchandise on account from Michelle P.
13 Castañaga Company, P645,000. Invoice dated January
13. RR Number 203. Terms: FOB Shipping Point.
Paid EMF Express freight charges of merchandise sold
14 to Michelle P. Castañaga, P1,650. Issued Check Number
377.
15 Received full payment of Jesus Remar C. Dassun. OR
#188.
Paid Maria Desiree C. Bello Company amount due.
15 Issued Check Number 378.
Paid salaries for the month, P225,000. Issued Check
15 Number 379.

Sold merchandise on credit to Jesus Remar C. Dassun,

January P255,000. Invoice Number 454. Terms: FOB Shipping
16 Point.
16 Sold merchandise for cash, P625,000.
Sold merchandise on credit to Noel C. Ramirez,
16 P195,000. Invoice Number 455. Terms: FOB Shipping
Point.
18 Received the amount due from Arly N. Visperas.
 OR#189.
Sold merchandise on credit to Ladi George L. Gascon,
19 P275,000. Invoice Number 456. Terms: FOB Shipping
Point.
21 Sold merchandise for cash, P550,000.
Purchased merchandise on account from Virginia L.
21 Bongolan Company, P425,000. Invoice dated January
21. RR Number 204. Terms: FOB Shipping Point.
Paid Michelle P. Castañaga Company amount due.
21 Issued Check Number 380.
Purchased merchandise for cash, P295,000. Issued
22 Check Number 381.
23 Sold merchandise for cash, P395,000.
Purchased merchandise on account from Remedios A.
26 Palaganas Company, P375,000. Invoice dated January
26. RR Number 205. Terms: FOB Shipping Point.
Received and paid telephone bill, P13,450. Issued
27 Check Number 382.
Paid EMF Express freight charges of merchandise
27 purchased from Virginia L. Bongolan Company,
P2,075, and Remedios A. Palaganas Company, P1,900.
Issued Check Number 383.
28 Received full payment of Jesus Remar C. Dassun. OR
#190.
Received and paid electric bill, P25,750. Issued Check
28 Number 384.
Withdrew P125,000 cash for personal use. Issued
29 Check Number 385.
29 Sold merchandise for cash, P455,000.
Purchased merchandise on account from Floyd Alexis
29 G. Rafanan Company, P215,000. Invoice dated
January 29. RR Number 206. Terms: FOB Destination.
Paid salaries for the month, P250,000. Issued Check
30 Number 386.
30 Received full payment of Noel C Ramirez. OR #191.
Sold merchandise on credit to Richard John R. Sales,
30 P285,000. Invoice Number 457. Terms: FOB Shipping
Point.
Sold merchandise on credit to Claiver C. Soriano,
30 P305,000. Invoice Number 458. Terms: FOB Shipping
Point.
Sold merchandise on credit to Jasmin S. Acosta,
30 P395,000. Invoice Number 459. Terms: FOB Shipping
Point.

Chart of Accounts
Balance Sheet Income Statement
Assets Income
110 Cash 410 Sales
Sales Returns and
120 Accounts Receivable 420 Allowances
130 Merchandise Inventory 430 Sales Discounts
140 Prepaid Advertising Cost of Sales
150 Office Supplies 510 Purchases
Purchases Returns and
160 Land 520 Allowances
170 Building 530 Purchases Discounts
Accumulated Depreciation - 540 Transportation In
175 Building Expenses
180 Office Equipment 610 Salaries Expense
Accumulated Depreciation – 620 Advertising Expense
185 Office Equipment 630 Office Supplies
Expense
Liabilities 640 Utilities Expense
210 Accounts Payable Depreciation Expense –
220 Salaries Payable 650 Building
230 Interest Payable Depreciation Expense –
240 Notes Payable 660 Office Equipment
Equity 670 Transportation Out
310 Soriano, Capital 680 Interest Expense
320 Soriano, Withdrawals
330 Income Summary

Required:
1. Record the transactions in the Special Journals (Cash Receipts
Journal – CRJ-1, Cash Disbursements Journal – CDJ-1, Purchases
Journal – PJ-1, Sales Journal – SJ-1) and General Journal – GJ-1.
2. Post the journal entries in the General Ledger.
3. For Accounts Receivable and Accounts Payable, post also to the
subsidiary ledgers.
4. Prepare the Trial Balance.
5. Journalize the following adjustments in the General Journal then
post to the General Ledger. Record in the General Journal (GJ-2),
then post to the General Ledger.
a. Inventory of office supplies at the end of the month
amounted to P25,000.
b. Prepaid Advertising in the Post-closing Trial Balance is for
nine (9)
months. The Prepaid Advertising for January has expired.

c. The cost of the Office Equipment is P600,000. The estimated

useful life is five (5) years with a salvage value of P50,000 at
the end of 5th year.
d. The cost of the Building is P2,000,000. The estimated useful
life is
twenty (20) years with a salvage value of P100,000 at the
end of 20th year.
e. The annual interest on notes payable is 18% to be paid
every
December 31.
f. Accrued salaries amounted to P55,000.
g. The amount of Merchandise Inventory as of January 31, 2020
is
P250,000.
6. Prepare the ten-column Worksheet.
7. Prepare the Financial Statements.
8. Prepare the closing entries. Record in the General Journal (GJ-3),
then
post to the General Ledger.
9. Prepare the Post-closing Trial Balance.
 Cash Receipts Journal CRJ-1

Debits Credits
Date O.R. Description Sales Accounts Other Accounts
Numbe Cash Discounts Receivable Sales Account Title PR Amount
r
2020
Jan. 6 Cash Sales 420,000 420,000
9 186 Richard John R. Sales 242,500 7,500 250,000
9 Cash Sales 575,000 575,000
11 187 Noel C. Ramirez 363,750 11,250 375,000
15 188 Jesus Remar C. Dassun 388,000 12,000 400,000
16 Cash Sales 625,000 625,000
18 189 Arly N. Visperas 412,250 12,750 425,000
21 Cash Sales 550,000 550,000
23 Cash Sales 395,000 395,000
28 190 Jesus Remar C. Dassun 255,000 255,000
29 Cash Sales 455,000 455,000
30 191 Noel C. Ramirez 195,000 195,000

4,876,500 43,500 1,900,000 3,020,000

Cash Disbursements Journal CDJ-1

 Credits Debits
Date Check Description Purchases Accounts Other Accounts
Numbe Discounts
r Cash Payable Purchases Account Title PR Amount
2020
Jan. 5 371 EMF Express 1,500 Transportation Out 1,500
6 372 EMF Express 2,575 Transportation In 2,575
6 373 Floyd Alexis G. Rafanan 356,250 18,750 375,000
9 374 EMF Express 3,400 Transportation In 1,800
Transportation Out 1,600
9 375 Office Supplies 175,000 Office Supplies 175,000
13 376 Virginia L. Bongolan Company 475,000 25,000 500,000
14 377 EMF Express 1,650 Transportation In 1,650
15 378 Maria Desiree C. Bello 712,500 37,500 750,000
Company
15 379 Salaries 225,000 Salaries Expense 225,000
21 380 Michelle P. Castañaga 612,750 32,250 645,000
22 381 Cash Purchases 295,000 295,000
27 382 Telephone Bill 13,450 Utilities Expense 13,450
27 383 EMF Express 3,975 Transportation In 3,975
28 384 Electric Bill 25,750 Utilities Expense 25,750
29 385 Lindbergh Lendl S. Soriano 125,000 Soriano, 125,000
Withdrawal
30 386 Salaries 250,000 Salaries Expense 250,000

3,278,800 113,500 2,270,000 295,000 827,300

Purchases Journal PJ-1

Credits Debits
Date R.R. Account Accounts Office Other Accounts
Numbe Credited Payable Purchases Supplie Account Title PR Amount
r s
 2020
Jan. 4 201 Virginia L. Bongolan Company 550,000 550,000
8 202 Maria Desiree C. Bello Company 750,000 750,000
13 203 Michelle P. Castañaga Company 645,000 645,000
21 204 Virginia L. Bongolan Company 425,000 425,000
26 205 Remedios A. Palaganas Company 375,000 375,000
29 206 Floyd Alexis G. Rafanan 215,000 215,000

2,960,000 2,960,000
 Sales Journal SJ-1

Invoice Account Post Accts. Receivable

Date Number Debited Ref. Dr./
Sales Cr.
2020
Jan. 4 451 Noel C. Ramirez 375,000
8 452 Jesus Remar C. Dassun 400,000
8 453 Arly N. Visperas 475,000
16 454 Jesus Remar C. Dassun 255,000
16 455 Noel C. Ramirez 195,000
19 456 Ladi George L. Gascon 275,000
30 457 Richard John R. Sales 285,000
30 458 Claiver C. Sooriano 305,000
30 459 Jasmin S. Acosta 395,000

2,960,000

General Journal GJ-1

Date PR Debit Credit

2020
Jan. 1 Accounts Payable 50,000
1
Purchases Returns and 50,000
Allowances
Virginia L. Bongolan
Company

1 Sales Returns and Allowances 50,000

1
Accounts Receivable 50,000
Arly N. Visperas

General Ledger
 CASH Account No. 110
Date J.R. Amount Date J.R. Amount
202 202
0 0
Jan. 1 Beg.Bal. 575,000 Jan. 3 CDJ-1 3,278,80
1 0
3 CRJ-1 4,876,50
1 0

5,451,50
0

3 Balance 2,172,70
1 0

ACCOUNTS RECEIVABLE Account No. 120

Date J.R. Amount Date J.R. Amount
2020 2020
Jan. 1 Beg.Bal. 250,000 Jan. 1 GJ-1 50,000
1
3 SJ-1 2,960,00 3 CRJ- 1,900,00
1 0 1 1 0

3,210,00 1,950,00
0 0

3 Balance 1,260,00
1 0

MERCHANDISE INVENTORY Account No. 130

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 600,00
0

PREPAID ADVERTISING Account No. 140

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 45,000
 OFFICE SUPPLIES Account No. 150
Date J.R. Amount Date J.R Amount
.
202
0
Jan. 1 Beg.Bal. 120,00
0
9 CDJ-1 175,00
0

3 Balance 295,00
1 0

LAND Account No. 160

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 800,000

BUILDING Account No. 170

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 2,000,00
0

ACCUMULATED DEPRECIATION -BUILDING Account No. 175

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 190,000

OFFICE EQUIPMENT Account No. 180

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 600,000
 ACCUMULATED DEPRECIATION - OFFICE EQUIPMENT Account No. 185
Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 220,000

ACCOUNTS PAYABLE Account No. 210

Date J.R. Amount Date J.R. Amount
202 202
0 0
Jan. 1 GJ-1 50,000 Jan. 1 Beg.Bal. 375,000
1
3 CDJ- 2,270,00 3 PJ-1 2,960,00
1 1 0 1 0

2,320,00 3,335,00
0 0

3 Balance 1,015,00
1 0

NOTES PAYABLE Account No. 240

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 2,000,00
0

SORIANO, CAPITAL Account No. 310

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 2,205,00
0

SORIANO, WITHDRAWALS Account No. 320

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 2 CDJ- 125,00
9 1 0

SALES Account No. 410

Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 3 CRJ- 3,020,00
1 1 0
3 SJ-1 2,960,00
1 0

3 Balance 5,980,00
1 0

SALES RETURNS AND ALLOWANCES Account No. 420

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 1 GJ-1 50,000
1

SALES DISCOUNTS Account No. 430

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 3 CRJ-1 43,500
1

PURCHASES Account No. 510

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 3 CDJ-1 295,000
1
3 PJ-1 2,960,00
1 0

3 Balance 3,255,00
1 0
 PURCHASES RETURNS AND ALLOWANCES Account No. 520
Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 1 GJ-1 50,000
1

PURCHASES DISCOUNTS Account No. 530

Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 3 CDJ-1 113,500
1

TRANSPORTATION IN Account No. 540

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 6 CDJ-1 2,575
9 CDJ-1 1,800
1 CDJ-1 1,650
4
2 CDJ-1 3,975
7

3 Balance 10,000
1

SALARIES EXPENSE Account No. 610

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 1 CDJ-1 225,00
5 0
3 CDJ-1 250,00
0 0

3 Balance 475,00
1 0
 UTILITIES EXPENSE Account No. 640
Date J.R. Amount Date J.R Amount
.
202
0
Jan. 2 CDJ-1 13,450
7
2 CDJ-1 25,750
7

3 Balance 39,200
1

TRANSPORTATION OUT Account No. 660

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 5 CDJ-1 1,500
9 CDJ-1 1,600

3 3,100
1

Controlling Account

ACCOUNTS RECEIVABLE Account No. 120

Date J.R. Amount Date J.R. Amount
2020 2020
Jan. 1 Beg.Bal. 250,000 Jan. 1 GJ-1 50,000
1
3 SJ-1 2,960,00 3 CRJ- 1,900,00
1 0 1 1 0

3,210,00 1,950,00
0 0

3 Balance 1,260,00
1 0

Subsidiary Ledgers

Jasmin S. Acosta
Date J.R. Amount Date J.R Amount
.
202
0
Jan. 3 SJ-1 395,00
0 0
 Jesus Remar C. Dassun
Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 8 SJ-1 400,00 Jan. 1 CRJ-1 400,000
0 5
1 SJ-1 255,00 2 CRJ-1 255,000
6 0 8

655,00 655,000
0

3 Balance 0
1

Ladi George L. Gascon

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 1 SJ-1 275,00
9 0

Noel C. Ramirez
Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 4 SJ-1 375,00 Jan. 1 CRJ-1 375,000
0 1
1 SJ-1 195,00 3 CRJ-1 195,000
6 0 0

570,00 570,000
0

3 Balance 0
1

Richard John R. Sales

Date J.R. Amount Date J.R. Amount
202 202
0 0
Jan. 1 Beg.Bal. 250,000 Jan. 9 CRJ-1 250,000
3 SJ-1 285,000
0

535,000

3 Balance 285,000
1
 Claiver C. Soriano
Date J.R. Amount Date J.R Amount
.
202
0
Jan. 3 SJ-1 305,000
0

Arly N. Visperas
Date J.R. Amount Date J.R. Amount
202 202
0 0
Jan. 8 SJ-1 475,000 Jan. 1 GJ-1 50,000
1
1 CRJ-1 425,000
8

475,000

3 Balance 0
1

Controlling Account

ACCOUNTS PAYABLE Account No. 210

Date J.R. Amount Date J.R. Amount
202 202
0 0
Jan. 1 GJ-1 50,000 Jan. 1 Beg.Bal. 375,000
1
3 CDJ- 2,270,00 3 PJ-1 2,960,00
1 1 0 1 0

2,320,00 3,335,00
0 0

3 Balance 1,015,00
1 0
 Subsidiary Ledgers

Virginia L. Bongolan Company

Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 1 GJ-1 50,000 Jan. 4 PJ-1 550,000
1
1 CDJ-1 500,00 2 PJ-1 425,000
3 0 1

550,00 975,000
0

3 Balance 425,000
1

Maria Desiree C. Bello Company

Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 1 CDJ-1 750,00 Jan. 8 PJ-1 750,000
5 0

3 Balance 0
1

Michelle P. Castañaga Company

Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 2 CDJ-1 645,00 Jan. 1 PJ-1 645,000
1 0 3

3 Balance 0
1

Remedios A. Palaganas Company

Date J.R. Amount Date J.R. Amount
2020
Jan. 2 PJ-1 375,000
6

Floyd Alexis G. Rafanan Company

Date J.R. Amount Date J.R. Amount
202 2020
0
Jan. 6 CDJ-1 375,00 Jan. 1 Beg.Bal. 375,000
0
2 PJ-1 215,000
 9

590,000

3 Balance 215,000
1

Lindbergh Lendl S. Soriano Company

Trial Balance
January 31, 2020
Debit Credit
Cash 2,172,700
Accounts Receivable 1,260,000
Merchandise Inventory 600,000
Prepaid Advertising 45,000
Office Supplies 295,000
Land 800,000
Building 2,000,000
Accumulated Depreciation - Building 190,000
Office Equipment 600,000
Accumulated Depreciation – Office Equipment 220,000
Accounts Payable 1,015,000
Notes Payable 2,000,000
Soriano, Capital 2,205,000
Soriano, Withdrawals 125,000
Sales 5,980,000
Sales Returns and Allowances 50,000
Sales Discounts 43,500
Purchases 3,255,000
Purchases Returns and Allowances 50,000
Purchases Discounts 113,500
Transportation In 10,000
Salaries Expense 475,000
Utilities Expense 39,200
Transportation Out 3,100

Total 11,773,50 11,773,50

0 0

General Journal

Adjusting Entries GJ-2

Date P.R. Debit Credit

2020
Jan. 31 Office Supplies Expense 270,00
0
Office Supplies 270,00
0
(295,000 – 25,000)

31 Advertising Expense 5,000

Prepaid Advertising 5,000
(45,000/9 months)

Depreciation Expense – Office

31 Equipment 9,167
 Accumulated Depreciation –
Office Equipment 9,167
[(600,000-50,000)/5 years/12]

31 Depreciation Expense – Building 7,917

Accumulated Depreciation –
Building 7,917
[(2,000,000-100,000)/20
years/12]

31 Interest Expense 30,000

Interest Payable 30,000
(2,000,000 x 18%/12 months)

31 Salaries Expense 55,000

Salaries Payable 55,000

General Ledger

PREPAID ADVERTISING Account No. 140

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 45,000 Jan. 3 AJE 5,000
1

3 Balance 40,000
1

OFFICE SUPPLIES Account No. 150

Date J.R. Amount Date J.R. Amount
202 2020
0 2
Jan. 1 Beg.Bal. 120,00 Jan. 3 AJE GJ-2 270,000
0 1
9 CDJ-1 175,00
0

3 Balance 295,00
1 0

ACCUMULATED DEPRECIATION -BUILDING Account No. 175

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 1 Beg.Bal. 190,000
3 AJE 7,917
1

3 Balance 197,917
1

ACCUMULATED DEPRECIATION - OFFICE EQUIPMENT Account No. 185

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 1 Beg.Bal. 220,000
3 AJE 9,167
1

3 Balance 229,167
1

SALARIES PAYABLE Account No. 220

Date J.R Amount Date J.R Amount
. .
202 2020
0
Jan. 3 AJE 55,000
1

INTEREST PAYABLE Account No. 230

Date J.R Amount Date J.R Amount
. .
202 2020
0
Jan. 3 AJE 30,000
1

SALARIES EXPENSE Account No. 610

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 1 CDJ-1 225,00
5 0
3 CDJ-1 250,00
0 0

3 Balance 475,00
1 0
3 AJE 55,000
1

3 530,00
1 0

ADVERTISING EXPENSE Account No. 620

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 3 AJE 5,000
1

OFFICE SUPPLIES EXPENSE Account No. 630

Date J.R. Amount Date J.R Amount
.
202
0
Jan. 3 AJE GJ-2 270,00
1 0

DEPRECIATION EXPENSE - BUILDING Account No. 650

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 3 AJE 7,917
1

DEPRECIATION EXPENSE – OFFICE EQUIPMENT Account No. 650

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 3 AJE 9,167
1

INTEREST EXPENSE Account No. 670

Date J.R Amount Date J.R Amount
. .
202
0
Jan. 3 AJE 30,000
1
 Lindbergh Lendl S. Soriano Company
Worksheet
January 31, 2020
Unadjusted Adjusted Income Balance
Trial Balance Adjustments Trial Balance Statement Sheet
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Cash 2,172,70 2,172,70 2,172,70
0 0 0
Accounts Receivable 1,260,00 1,260,00 1,260,00
0 0 0
Merchandise Inventory 600,000 600,000 600,000 250,000 250,000
Prepaid Advertising 45,000 5,000 40,000 40,000
Office Supplies 295,000 270,000 25,000 25,000
Land 800,000 800,000 800,000
Building 2,000,00 2,000,00 2,000,00
0 0 0
Accumulated Depreciation
- Building 190,000 7,917 197,917 197,917
Office Equipment 600,000 600,000 600,000
Accumulated Depreciation
– Office Equipment 220,000 9,167 229,167 229,167
Accounts Payable 1,015,00 1,015,00 1,015,00
0 0 0
Notes Payable 2,000,00 2,000,00 2,000,00
0 0 0
Soriano, Capital 2,205,00 2,205,00 2,205,00
0 0 0
Soriano, Withdrawals 125,000 125,000 125,000
Sales 5,980,00 5,980,00 5,980,00
0 0 0
Sales Returns and
Allowances 50,000 50,000 50,000
Sales Discounts 43,500 43,500 43,500
Purchases 3,255,00 3,255,00 3,255,00
0 0 0
Purchases Returns and
Allowances 50,000 50,000 50,000
Purchases Discounts 113,500 113,500 113,500
Transportation In 10,000 10,000 10,000
Salaries Expense 475,000 55,000 530,000 530,000

Unadjusted Adjusted Income Balance

Trial Balance Adjustments Trial Balance Statement Sheet
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Utilities Expense 39,200 39,200 39,200
Transportation Out 3,100 3,100 3,100

Total 11,773,5 11,773,5

00 00

Office Supplies Expense 270,000 270,000 270,000

Advertising Expense 5,000 5,000 5,000
Depreciation Expense –
Office Equipment 9,167 9,167 9,167
Depreciation Expense -
Building 7,917 7,917 7,917
Interest Expense 30,000 30,000 30,000
Interest Payable 30,000 30,000 30,000
Salaries Payable 55,000 55,000 55,000

Total 322,084 322,084 11,875,5 11,875,5 4,852,88 6,393,50 7,272,70 5,732,08

84 84 4 0 0 4
Net Income 1,540,61 1,540,61
6 6
6,393,50 6,393,50 7,272,70 7,272,70
0 0 0 0
 FINANCIAL STATEMENTS

Lindbergh Lendl S. Soriano Company

Income Statement
For the Month Ended January 31, 2020
Sales 5,980,00
0
Less: Sales Returns and
Allowances 50,000
Sales Discounts 43,500 93,500
Net Sales 5,886,50
0
Less: Cost of Sales
Merchandise Inventory, beg. 600,000
Add: Net Cost of Purchases
Purchases 3,255,00
0
Less: Purchases Returns and
Allowances 50,000
Purchases Discounts 113,500 163,500
Net Purchases 3,091,50
0
Add: Transportation In 10,000 3,101,50
0
Total 3,701,50
0
Less: Merchandise Inventory, end 3,451,50
250,000 0
Gross Income 2,435,00
0
Less: Operating Expenses
Salaries Expense 530,000
Utilities Expense 39,200
Transportation Out 3,100
Office Supplies Expense 270,000
Advertising Expense 5,000
Depreciation Expense – Office
Equipment 9,167
Depreciation Expense –
Building 7,917
Interest Expense 30,000 894,384
Net Income 1,540,61
6

Lindbergh Lendl S. Soriano Company

Statement of Changes in Equity
For the Month Ended January 31, 2020
Soriano, Capital, 1/1/2020 2,205,000
Add: Net Income 1,540,616
Total 3,745,616
Less: Withdrawals 125,000
Soriano, Capital, 1/31/2020 3,620,616
 Lindbergh Lendl S. Soriano Company
Balance Sheet
January 31, 2020

Assets
Current Assets:
Cash 2,172,700
Accounts Receivable 1,260,000
Merchandise Inventory 250,000
Prepaid Advertising 40,000
Office Supplies 25,000
Total Current Assets 3,747,700
Non-current Assets:
Land 800,000
Building 2,000,000
Less: Accumulated Depreciation
– 197,917 1,802,083
Building
Office Equipment 600,000
Less: Accumulated Depreciation
– 229,167
Office Equipment 370,833 2,972,916
Total Assets 6,720,616
Liabilities
Current Liabilities:
Accounts Payable 1,015,000
Notes Payable 2,000,000
Salaries Payable 30,000
Interest Payable 55,000
Total Current Liabilities 3,100,000
Owner’s Equity
Soriano, Capital 3,620,616
Total Liabilities and Owner’s Equity 6,720,616

General Journal
 Closing Entries J-5

Date P.R Debit Credit

.
2020
Jan. 31 Income Summary 4,852,88
4
Merchandise Inventory, 1/1/2020 600,000
Sales Returns and Allowances 50,000
Sales Discounts 43,500
Purchases 3,255,00
0
Transportation In 10,000
Salaries Expense 530,000
Utilities Expense 39,200
Transportation Out 3,100
Office Supplies Expense 270,000
Advertising Expense 5,000
Depreciation Expense – Office
Equipment 9,167
Depreciation Expense - Building 7,917
Interest Expense 30,000

Sales 5,980,00
0
Purchases Returns and Allowances 50,000
Purchases Discounts 113,500
Merchandise Inventory, 1/31/2020 250,000
Income Summary 6,393,50
0

31 Income Summary 1,540,61

6
Soriano, Capital 1,540,61
6

31 Soriano, Capital 125,000

Soriano, Withdrawals 125,000

General Ledger

SORIANO, CAPITAL Account No. 310

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 3 Withdrawals 125,00 Jan. 1 Beg.Bal. 2,205,00
1 0 0
3 Net Income 1,540,6
1 16

3,745,61
6

3 Balance 3,620,61
1 6
 SORIANO, WITHDRAWALS Account No. 320
Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 2 CDJ- 125,00 Jan. 3 CE 125,000
9 1 0 0

3 Balance 0
1

INCOME SUMMARY Account No.

Date J.R Amount Date J. Amount
. R
2020 2020
Jan. 3 4,852,88 Jan. 3 CE 6,393,5
1 4 1 00
3 1,540,6
1 16

6,393,50
0
3 Balance 0
1

SALES Account No. 410

Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 3 CE 5,980,00 Jan. 3 CRJ-1 3,020,00
1 0 1 0
3 SJ-1 2,960,00
1 0

5,980,00
0
3 Balance 0
1

SALES RETURNS AND ALLOWANCES Account No. 420

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 1 GJ-1 50,000 Jan. 3 CE 50,000
1 1

3 Balance 0
1
 SALES DISCOUNTS Account No. 430
Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 3 CRJ-1 43,500 Jan. 3 CE 43,500
1 1

3 Balance 0
1

PURCHASES Account No. 510

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 3 CDJ-1 295,000 Jan. 3 CE 3,255,0
1 1 00
3 PJ-1 2,960,00
1 0

3,255,00
0
3 Balance 0
1

PURCHASES RETURNS AND ALLOWANCES Account No. 520

Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 3 CE 50,000 Jan. 1 GJ- 50,000
1 1 1

3 Balance 0
1

PURCHASES DISCOUNTS Account No. 530

Date J.R Amount Date J.R. Amount
.
202 2020
0
Jan. 3 CE 113,50 Jan. 3 CDJ-1 113,500
1 0 1

3 Balance 0
1

TRANSPORTATION IN Account No. 540

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 6 CDJ-1 2,575 Jan. 3 CE 10,000
1
9 CDJ-1 1,800
 1 CDJ-1 1,650
4
2 CDJ-1 3,975
7

10,000
3 Balance 0
1

SALARIES EXPENSE Account No. 610

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 1 CDJ-1 225,00 Jan. 3 CE 530,000
5 0 1
3 CDJ-1 250,00
0 0

3 Balance 475,00
1 0
3 AJE 55,000
1

530,00
0
3 Balance 0
1

UTILITIES EXPENSE Account No. 640

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 2 CDJ-1 13,450 Jan. 3 CE 39,200
7 1
2 CDJ-1 25,750
7

39,200
3 Balance 0
1

TRANSPORTATION OUT Account No. 660

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 5 CDJ-1 1,500 Jan. 3 CE 3,100
1
9 CDJ-1 1,600

3,100
3 Balance 0
1

ADVERTISING EXPENSE Account No. 620

Date J.R Amount Date J.R Amount
 . .
202 202
0 0
Jan. 3 AJE 5,000 Jan. 3 CE 5,000
1 1

3 Balance 0
1

OFFICE SUPPLIES EXPENSE Account No. 630

Date J.R. Amount Date J.R Amount
.
202 202
0 0
Jan. 3 AJE GJ-2 270,00 Jan. 3 CE 270,000
1 0 1

3 Balance 0
1

DEPRECIATION EXPENSE - BUILDING Account No. 650

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 3 AJE 7,917 Jan. 3 CE 7,917
1 1

3 Balance 0
1

DEPRECIATION EXPENSE – OFFICE EQUIPMENT Account No. 650

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 3 AJE 9,167 Jan. 3 CE 9,167
1 1

Balance 0

INTEREST EXPENSE Account No. 670

Date J.R Amount Date J.R Amount
. .
202 202
0 0
Jan. 3 AJE 30,000 Jan. 3 CE 30,000
1 1

3 Balance 0
1

Lindbergh Lendl S. Soriano Company

Post-Closing Trial Balance
 January 31, 2020
Dr Cr
Cash 2,172,70
0
Accounts Receivable 1,260,00
0
Merchandise Inventory 250,000
Prepaid Advertising 40,000
Office Supplies 25,000
Land 800,000
Building 2,000,00
0
Accumulated Depreciation – Building 197,917
Office Equipment 600,000
Accumulated Depreciation – Office Equipment 229,167
Accounts Payable 1,015,00
0
Notes Payable 2,000,00
0
Salaries Payable 30,000
Interest Payable 55,000
Soriano, Capital 3,620,61
6

7,147,70 7,147,70
0 0