Required:

a. The adjusting journal entries at December 31 of the current year.

Account Title
Debit
Dec. 31 Merchandise Inventory, end. 1,650,620
Purchase Returns 26,250
Purchase Discount 40,560
Cost of Goods Sold 2,546,720
Merchandise Inventory, beg.
Purchases
Transportation In

Dec. 31 Accrued Interest Income 1,800

Interest Income

Dec. 31 Insurance Expense 5,800

Prepaid Insurance

Dec. 31 Office Supplies Expense 1,400

Office Supplies

Dec. 31 Depreciation Expense 65,000

Accumulated Depreciation - Delivery Equipment
Accumulated Depreciation - Store Equipment

Dec. 31 Depreciation Expense 10,000

Accumulated Depreciation - Office Equipment

Dec. 31 Sales Salary Expense 10,000

Office Salary Expense 5,000
Rent Expense 10,000
Advertising Expense 3,000
Accrued Sales Salary Expense
Accrued Office Salary Expense
Accrued Rent Expense
Accrued Advertising Expense

Dec. 31 Bad Debts Expense 37,606

Allowance for Bad Debts

Dec. 31 Vat Output Tax 30,800

Vat Input Tax
Vat Payable

b. An eight-Column Worksheet for the year ended December 31 of the current year.

Unadjusted Trial Balance

Account Title
 Account Title
Debit
Cash 255,430
Notes Receivable 60,000
Accrued Interest Income
Accounts Receivable 275,600
Allowance for Bad Debts
Merchandise Inventory, beg. 1,578,650
Merchandise Inventory, end.
Prepaid Insurance 12,000
Office Supplies 6,250
Vat Input Tax 22,400
Delivery Equipment 500,000
Accumulated Depreciation - DE
Store Equipment 150,000
Accumulated Depreciation - SE
Office Equipment 50,000
Accumulated Depreciation -OE
Accounts Payable
Accrued Sales Salary Expense
Accrued Office Salary Expense
Accrued Rent Expense
Accrued Advertising Expense
Notes Payable
Vat Output Tax
Mary Modern, Capital
Mary Modern, Drawing 60,000
Sales
Sales Returns & Allowances 37,500
Sales Discounts 50,650
Purchases 2,625,250
Purchase Returns
Purchase Discount
Transportation In 60,250
Cost of Goods Sold
Sales Salary Expense 215,675
Advertising Expense 33,000
Commission Expense 75,250
Delivery Expense 112,500
Misc. Selling Expense 12,450
Office Salary Expense 125,900
Rent Expense 110,000
Insurance Expense 12,000
Office Supplies Expense 16,800
Tax Expense 10,250
Misc. General Expense 6,200
Interest Income
Interest Expense 12,000
Depreciation Expense
Bad Debts Expense

Interest Income
 Interest Receivable
Dep. Expense D&S.E
Dep. Expense O.E
Accrued Sundry Payable
Bad Debt Expense
Allowance for Doubtful Accounts
Vat Payable

TOTAL 6,486,005

Net Income

c. An Statement of Comprehensive Income for the year ended December 31 of the current year using two formats

d. An Statement of Changes in Equity for the year ended December 31 of the current year.

e. An Statement of Financial Condition as of December 31 of the current year.

f. The closing journal entries at December 31 of the current year.

g. The Post-Closing Trial Balance as of December 31 of the current year.

 Credit

1,578,650
2,625,250
60,250

1,800

5,800

1,400

50,000
15,000

10,000

1,000
5,000
10,000
3,000

37,606

22,400
8,400

MODERN APPLIANCE STO

WORKSHEET
For the Year ended December 20
nadjusted Trial Balance Adjustments Adjusted Trial Balance
Credit Debit Credit Debit
255,430
60,000
1,800 1,800
275,600
37,606
1,578,650 -
1,650,620 1,650,620
5,800 6,200
1,400 4,850
22,400
500,000
50,000 50,000
150,000
15,000 15,000
50,000
10,000 10,000
945,650
10,000
5,000
10,000
3,000
100,000
30,800 30,800 -
1,505,945
60,000
3,760,600
37,500
50,650
2,625,250 -
26,250 26,250 -
40,560 40,560 -
60,250 -
2,546,720 2,546,720
10,000 225,675
3,000 36,000
75,250
112,500
12,450
5,000 130,900
10,000 120,000
5,800 17,800
1,400 18,200
10,250
6,200
1,200 1,800
12,000
75,000 75,000
37,606 37,606
 8,400

6,486,005 4,444,556 4,444,556 6,539,201

31 of the current year using two formats

the current year.

 MODERN APPLIANCE STORE
WORKSHEET
For the Year ended December 20XX
Adjusted Trial Balance Closing Entries Post-Closing Trial Balance
Credit Debit Credit Debit

37,606
-

100,000

30,000

20,000
945,650
10,000
5,000
10,000
3,000
100,000
-
1,505,945

3,760,600

-
-
-
-

3,000
 8,400

6,539,201
st-Closing Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit
255,430
60,000
1,800
275,600

1,650,620
6,200
4,850

500,000

150,000

50,000

60,000
3,760,600
37,500
50,650

2,546,720
225,675
36,000
75,250
112,500
12,450
130,900
120,000
17,800
18,200
10,250
6,200
3,000
12,000
75,000
37,606
3,524,701 3,763,600 3,014,500

238,899

3,763,600 3,014,500
Balance Sheet
Credit

37,606

100,000

30,000

20,000
945,650
10,000
5,000
10,000
3,000
100,000

1,505,945
 8,400

2,775,601

238,899

3,014,500