HOPE MERCHANDISING

Worksheet
December 31,2019

Unadjusted Trial Balance Adjustments Income Statement Balance Sheet

Debit Credit Debit Credit Debit Credit Debit
Cash 434,200 434,200
Accounts Receivable 110,000 110,000
Estimated Uncollectible Accounts 5,000 4,000
Prepaid Insurance 45,000 5,000 40,000
Office supplies 23,000 13,000 10,000
Office Equipment 450,000 450,000
Accumulated Depreciation Eqpt 90,000 50,000
Accounts Payable 96,000
Salaries payable 30,000 20,000
Hope , capital 507,900
Hope, withdrawal 8,000 8,000
Service Income 433,300 433,300
Salaries expense 54,000 20,000 74,000
Insurance expense 5,000 5,000
Office Supplies expense 13,000 13,000
Depreciation expense 50,000 50,000
Advertising expense 15,000 15,000
Rent expense 23,000 23,000
Uncollectible Accounts 4,000 4,000
Totals 1,162,200 1,162,200 92,000 92,000 184,000 433,300 1,052,200
NET PROFIT 249,300
Totals 433,300 433,300 1,052,200

Adjusting Entries:
a. Insurance Expense 5,000 c. Salaries Expense 20,000
Prepaid Insurance 5,000 Salaries Payable

b. Office Supplies Expense 13,000 d. Depreciation Expense 50,000

Office Supplies 13,000 Accumulated Deppreciation - Eqpt.

e,Uncollectible accounts 4,000

Estimated uncollectible accounts
Required: Prepare the following
1. Income Statement
2. Balance Sheet
3. Statement of Changes in Equity
4. Closing Entries
5. Post closing trial balance
Balance Sheet
Credit

9,000

140,000
96,000
50,000
507,900

802,900
249,300
1,052,200

20,000

50,000

4,000
 HOPE MERCHANDISING
INCOME STATEMENT
December 31,2019
Hope,Capital beginning
Service Income 433,300 Add: Net Profit
Total Revenue 433,300 Total
Less: Operating Expenses Less: Hope Withdrawal
Salaries expense 74,000 Hope,Capital End
Insurance expense 5,000
Office Supplies expense 13,000
Depreciation expense 50,000
Advertising expense 15,000
Rent expense 23,000
Uncollectible Accounts 4,000 184,000
Net Profit 249,300

HOPE MERCHANDISING
Balance Sheet
As of December 31, 2019
Assets
Current Assets
Cash and Cash Equivalents 434,200
Trade and Other Receivables ( Note1) 101,000
Inventory ( Note 2) 10,000
Prepaid expenses ( Note 3) 40,000
Total Current Assets 585,200
Non-current Assets
Property, Plant and Equipment ( Note 4) 310,000
Total Non-current Assets 310,000
Total Assets 895,200

Total Liabilties and Owner's Equity

Liabilities
Current Liabilties
Trade and other payables 146,000
Total Liabilties 146,000
Owners Equity
Hope , capital 749,200
Total Liabilties and Owner's Equity 895,200
 HOPE MERCHANDISING
Statement of Changes in Equity
December 31,2019
Hope,Capital beginning 507,900
Add: Net Profit 249,300
757,200
Less: Hope Withdrawal 8,000
Hope,Capital End 749,200

NDISING
eet
31, 2019

Note 1 Trade and other Receivables

Accounts Receivable 110,000
Less: Estimated uncollectible Accounts 9,000
Net realizable value 101,000

Note2 Inventory
Office supplies 10,000

Note 3 Prepaid expense

Prepaid insurance 40,000

Note 4 Property Plant and Equipment

Office Equipment 450,000
Accumulated Depreciation Eqpt - 140,000
Net Book Value 310,000

Note 5 Trade and other Payables

Accounts Payable 96,000
Salaries payable 50,000
Total 146,000
1. Close Revenue Account to income summary account
Service Income 433,300
Income Summary 433,300

2. Close Expense Accounts to income summary account

Income Summary 184000
Salaries expense 74000
Insurance expense 5000
Office Supplies expense 13000
Depreciation expense 50000
Advertising expense 15000
Rent expense 23000
Uncollectible Accounts 4000

3. Close the net profit to capital account

Income Summary 249,300
Hope,Capital 249,300

4. Close owner's withdrawal to capital account

Hope,capital 8000
Hope,withdrawal 8000
 HOPE MERCHANDISING
Post Closing Trial Balance
December 31,2019

Accounts Titles Debit Credit

Cash 434,200
Accounts Receivable 110,000
Estimated Uncollectible Accounts 9,000
Prepaid Insurance 40,000
Office supplies 10,000
Office Equipment 450,000
Accumulated Depreciation Eqpt 140,000
Accounts Payable 96,000
Salaries payable 50,000
Hope , capital 749,200
Totals 1,044,200 1,044,200