EXCELLENCE COMPANY

Worksheet
For the Year Ended December 31, 2014

Trial Balance Adjustments

Cash 1,900,000
Notes Receivable 625,000
Accounts Receivable 1,125,000
Allowance for Uncollectible Accounts 50,000
Merchandise Inventory 1,250,000
Furniture and Equipment 1,500,000
Accumulated Depreciaton 200,000
Notes Payable 500,000
Accounts Payable 375,000
Flores, Capital 1,250,000
Flores, Drawing 155,000
Garcia, Capital 3,125,000
Garcia, Drawing 250,000
Sales 5,000,000
Sales Returns and Allowances 50,000
Sales Discount 75,000
Purchases 2,412,500
Purchases Returns and Allowance 100,000
Puchases Discount 62,500
Freight In 125,000
Selling Expenses 825,000 b. 90,000
c. 25,000
General Expenses 362,500 b. 60,000
f. 62,500
Interest Income 17,500
Interest Expense 25,000 e. 1,500
10,680,000 10,680,000
Salaries Payable
Interest Receivable d. 2,500
Interest Payable
Supplies on Hand g. 25,000
Income Tax Expense h. 253,050
Income Tax Payable
519,550
Profit

Computation of income tax and profit:

Total credit per income statement before income tax
Total debit per income statement before income tax
Profit before tax
Income Tax (843,500 x 30%
Profit
MPANY

mber 31, 2014

Statement of
Adjustments Income Statement Financial Position
1,900,000
625,000
1,125,000
f. 62,500 112,500
1,250,000 1,000,000 1,000,000
1,500,000
b. 150,000 350,000
500,000
375,000
1,250,000
155,000
3,125,000
250,000
5,000,000
50,000
75,000
2,412,500
100,000
62,500
125,000
g. 15,000 925,000

g. 10,000 475,000

d. 2,500 20,000
26,500

c. 25,000 25,000
2,500
e. 1,500 1,500
25,000
253,050
h. 253,050 253,050
519,550 5,592,050 6,182,500 6,582,500 5,992,050
590,450 590,450
6,182,500 6,182,500 6,582,500 6,582,500

P6,182,500
5,339,000
P 843,500
253,050
P 590,450
 EXCELLENCE COMPANY
Worksheet
For the Year Ended December 31, 2014

Trial Balance Adjustments Income Statement

Cash 1,900,000
Notes Receivable 625,000
Accounts Receivable 1,125,000
Allowance for Uncollectible Accounts 50,000 f. 62,500
Merchandise Inventory 1,250,000 1,250,000 1,000,000
Furniture and Equipment 1,500,000
Accumulated Depreciaton 200,000 b. 150,000
Notes Payable 500,000
Accounts Payable 375,000
Flores, Capital 1,250,000
Flores, Drawing 155,000
Garcia, Capital 3,125,000
Garcia, Drawing 250,000
Sales 5,000,000 5,000,000
Sales Returns and Allowances 50,000 50,000
Sales Discount 75,000 75,000
Purchases 2,412,500 2,412,500
Purchases Returns and Allowance 100,000 100,000
Puchases Discount 62,500 62,500
Freight In 125,000 125,000
Selling Expenses 825,000 b. 90,000 g. 15,000 925,000
c. 25,000
General Expenses 362,500 b. 60,000 g. 10,000 475,000
f. 62,500
Interest Income 17,500 d. 2,500 20,000
Interest Expense 25,000 e. 1,500 26,500
10,680,000 10,680,000
Salaries Payable c. 25,000
Interest Receivable d. 2,500
Interest Payable e. 1,500
Supplies on Hand g. 25,000
5,339,000 6,182,500

Income Tax Expense h. 253,050 253,050

Income Tax Payable h. 253,050
519,550 519,550 10,931,050 12,365,000
Profit 590,450
11,521,500 6,182,500
Computation of income tax and profit:
Total credit per income statement before income tax P6,182,500
Total debit per income statement before income tax 5,339,000
Profit before tax P 843,500
Income Tax (843,500 x 30% 253,050
Profit P 590,450
 Statement of
Financial Position
1,900,000
625,000
1,125,000
112,500
1,000,000
1,500,000
350,000
500,000
375,000
1,250,000
155,000
3,125,000
250,000

25,000
2,500
1,500
25,000

253,050
6,582,500 5,992,050
590,450
6,582,500 6,582,500