NAME: JULLIE-ANN YBANEZ

ACC000B - TLA7-2

From the accounts taken from the Adjusted Trial Balance of CS Merchandising on
December 31, 2020 shown below, prepare the following:
1. Statement of Comprehensive Income
2. Statement of Changes in Equity
3. Statement of Financial Position

Accumulated Depreciation - Building 115,000.00

Accounts Receivable 136,000.00
Accounts Payable 74,000.00
Cash 72,000.00
Freight In 72,000.00
Insurance Expense 25,000.00
Interest Expense 208,000.00
Accumulated Depreciation - Off. Equip 170,000.00
CS, Capital 1,510,000.00
Office Supplies Expense 17,000.00
CS, Withdrawals 200,000.00
Land 400,000.00
Merchandise Inventory 598,000.00
Mortgage Payable 1,100,000.00
Notes Payable (due in 2 years) 200,000.00
Depreciation Expense - Building 15,000.00
Depreciation Expense - Office Equipment 20,000.00
Office Building 1,600,000.00
Office Equipment 570,000.00
Office Supplies 25,000.00
Salaries Payable 21,000.00
Prepaid Advertising 50,000.00
Purchase Discounts 172,000.00
Purchase Returns & Allowances 133,000.00
Purchases 2,643,000.00
Salaries Expense 883,000.00
Sales Discounts 161,000.00
Advertising Expense 25,000.00
Sales Returns and Allowances 187,000.00
Sales 4,600,000.00
Travel Expenses 188,000.00

1. Merchandise inventory at the end of the year is P'723,000

SHOW ALL FS BELOW:

CS Merchandising
Statement of Comprehensive Income
For the Year Ended December 31,2020

SALES 4,600,000
Less: Sales Returns and Allowances 187,000
Sales Discounts 161,000 348,000
NET SALES 4,252,000
LESS: COST OF SALES
Merchandise Inventory, beg. 598,000
Add: Net Purchases
Purchases 2,643,000
 Add: Freight In 72,000
Total 2,715,000
Less: Purchase Returns and Allowances 133,000
Purchase Discounts 172,000 305,000 2,410,000
Total Goods Available for Sale 3,008,000
Less: Merchandise Inventory, end 723,000 2,285,000
GROSS PROFIT 1,967,000
LESS: OPERATING EXPENSES
Insurance Expense 25,000
Interest Expense 208,000
Office Supplies Expense 17,000
Salaries Expense 883,000
Advertising Expense 25,000
Travel Expense 188,000
Depreciation Expense-Bulding 15,000
Depreciation Expense-Off.Equip. 20,000 1,381,000

NET PROFIT 586,000

CS Merchandising
Statement of Changes in Owner's Equity
For the Year Ended December 31,2020

CS, Capital, beginning 1,510,000

Net Profit 586,000
Total 2,096,000
Less: CS, Withdrawals 200,000
CS, Capital, End 1,896,000

CS Merchandising
Statement of Financial Position
as of December 31,2020

Assets
Current Assets
Cash 72,000
Accounts Receivable 136,000
Merchandise Inventory, end 723,000
Office Supplies 25,000
Prepaid Advertising 50,000
Total Current Assets 1,006,000

Noncurrent Assets
Property,Plant and Equipment
Land 400,000
Office Building 1,600,000
Less:Accum.Depn.-Building 115,000 1,485,000
Office Equipment 570,000
Less:Accum.Depn.-Office Equipment 170,000 400,000

TOTAL ASSETS 3,291,000

Liabilities and Owner's Equity

Current Liabilities
Accounts Payable 74,000
Salaries Payable 21,000
Total Current Liabilities 95,000
Noncurrent Liabilities
Notes Payable(due in 2 years) 200,000
Mortgage Payable 1,100,000
Total Noncurrent Liabilities 1,300,000

Owner's Equity
CS, Capital 1,896,000

TOTAL LIABILITIES AND OWNER'S EQUITY 3,291,000