Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 34,150 34,150 34,150
Accounts Receivable 62,750 62,750 62,750
Merchandise inventory 81,700 a-1 89,200 a-2 81,700 89,200 89,200
Prepaid insurance 7,125 b 3,265 3,860 3,860
Store supplies 895 c 660 235 235
Office supplies 575 c 280 295 295
Store equipment 52,500 52,500 52,500
Accum. Dep'n - Store equipment 17,200 d 4,050 21,250 21,250
Office equipment 18,300 18,300 18,300
Accum. Dep'n - Office equipment 7,800 d 1,240 9,040 9,040
Accounts payable 41,650 41,650 41,650
Note Payable (due in 5 years) 25,000 25,000 25,000
J. Perez, Capital 124,215 124,215 124,215
J. Perez, Drawing 20,000 20,000 20,000
Sales 577,800 577,800 577,800
Sales returns and allowances 3,300 3,300 3,300
Purchases 379,650 379,650 379,650
Purchase discount 4,930 4,930 4,930
Sales salaries expense 61,150 f 1,525 62,675 62,675
Advertising expense 16,400 16,400 16,400
Misc. selling expense 1,960 1,960 1,960
Office salaries expense 31,500 f 1,200 32,700 32,700
Rent expense – selling 16,000 16,000 16,000
Rent expense – general 8,000 8,000 8,000
Miscellaneous general expense 1,440 1,440 1,440
Gain on sale of equipment 800 800 800
Interest expense 2,000 2,000 2,000
799,395 799,395
Income Summary a-2 81,700 a-1 89,200 81,700 89,200 81,700 89,200
Insurance expense - selling b 2,550 2,550 2,550
Insurance expense - general b 715 715 715
Office supplies expense c 280 280 280
Store supplies expense c 660 660 660
Depreciation expense - Store d 4,050 4,050 4,050
Depreciation expense -Office d 1,240 1,240 1,240
Bad debts expense e 2,750 2,750 2,750
Allowance for bad debts e 2,750 2,750 2,750
Salaries payable f 2,725 2,725 2,725
Totals 185,870 185,870 899,360 899,360 618,070 672,730
Net Income 54,660 54,660
Totals 672,730 672,730 281,290 281,290
 Jupiter's Store
Income Statement
For the Year Ending December 31, 2022

Sales 577,800.00
Less: Sales returns and allowances 3,300.00
Net sales 574,500.00
Cost of sales
Merchandise Inventory, beginning 81,700.00
Purchases 379,650.00
Less: Purchase discounts 4,930.00
Net Purchases 374,720.00
Total goods available for sale 456,420.00
Less: Merchandise Inventory, end 89,200.00 367,220.00
Gross Profit 207,280.00
Operating Expenses
Selling expenses
Sales salaries expense 62,675.00
Advertising expense 16,400.00
Rent expense – selling 16,000.00
Depreciation expense - Store 4,050.00
Insurance expense - selling 2,550.00
Store supplies expense 660.00
Miscellaneous selling expenses 1,960.00 104,295.00
General expenses
Office salaries expense 32,700.00
Rent expense -general 8,000.00
Bad debts expense 2,750.00
Depreciation expense -Office 1,240.00
Insurance expense - general 715.00
Office supplies expense 280.00
Miscellaneous general expenses 1,440.00 47,125.00 151,420.00
Operating Income 55,860.00
Add(Deduct) other income/loss
Interest expense -2,000.00
Gain on sale of equipment 800 -1,200.00
Net Income 54,660.00
 Jupiter's Store
Statement of Changes in Equity
For the Year Ending December 31, 2022

J. Perez, Capital, beginning

Add Net Income
Total
Less: J. Perez, Drawing
J. Perez, Capital end

Jupiter's Store
Statement of Financial Position
As of December 31, 2022
Current Assets
Cash
Accounts Receivable
Allowance for bad debts
Merchandise inventory
Prepaid insurance
Store supplies
Office supplies
Total current Assets
Non-current Assets
Store equipment
Accum. Dep'n - Store equipment
Office equipment
Accum. Dep'n - Office equipment
Total Non-current Assets
Total Assets

Liabilities
Accounts payable
Salaries payable
Total Current liabilities
Note Payable (due in 5 years)
Total liabilities

Total J. Perez, Capital

Total Liabilities and Capital

 uity
31, 2022

124,215
54660
178,875
20,000
158,875

tion
2

34,150.00
62,750.00
-2,750.00
89,200.00
3,860.00
235.00
295.00
187,740.00

52,500.00
-21,250.00
18,300.00
-9,040.00
40,510.00
228,250.00

41,650.00
2,725.00
44,375.00
25,000.00
69,375.00

158,875.00

228,250.00
Adjusting Entries
a-1) Merchandise Inventory, end 89,200.00
Income Summary 89,200.00
To recognize ending inventory.

b) Insurance Expense - selling 2,550.00 Asset Method

Insurance Expense - general 715.00
Prepaid Insurance 3,265.00
To adjust insurance.

c) Store supplies expense 660.00 Asset Method

Office supplies expense 280.00
Store supplies 660.00
Office supplies 280.00
To adjust supplies.

d) Depreciaton expense - Store 4,050.00

Depreciation expense - Office 1,240.00
Accumulated depreciation - Store Equip 4,050.00
Accumulated depreciation - Office Equip 1,240.00
To record depreciation.

e) Bad debts expense 2,750.00

Allowance for bad debts 2,750.00
To record bad debts.

f) Sales salaries expense 1,525.00

Office salaries expense 1,200.00
Salaries payable 2,725.00
To adjust salaries
Closing Entries
Closing entry #1 Beginning Inventory
a-2) Income Summary 81,700.00
Merchandise Inventory, beg. 81,700.00
To close beginning inventory.

Closing entry #2 Revenue Accounts

Sales 577,800.00
Gain on sale of equipment 800.00
Sales returns and allowances 3,300.00
Income Summary 575,300.00
To close revenue accounts.

Closing entry #2 Expense Accounts

Income Summary 528,140.00
Purchase discount 4,930.00
Purchases 379,650.00
Sales salaries expense 62,675.00
Advertising expense 16,400.00
Rent expense – selling 16,000.00
Depreciation expense - Store 4,050.00
Insurance expense - selling 2,550.00
Store supplies expense 660.00
Miscellaneous selling expenses 1,960.00
Office salaries expense 32,700.00
Rent expense -general 8,000.00
Bad debts expense 2,750.00
Depreciation expense -Office 1,240.00
Insurance expense - general 715.00
Office supplies expense 280.00
Miscellaneous general expenses 1,440.00
Interest expense 2,000.00
To close all expense accounts to income summary.

Closing entry #3 Income Summary

Income Summary 54,660.00
J.Perez, Capital 54,660.00
To close income summary to J.Perez, Capital.

Closing entry #4 Drawing Account

J. Perez, Capital 20,000.00
J. Perez, Drawing 20,000.00
To close drawing account to J.Perez, Capital.
 Reversing Entries - the following adjusting entries need to be reversed at the beginn
a. Adjustment for an accrued income
b. Adjustment for an accrued expense
c. Adjustment for a prepaid expense if the expense method of recording prepaymen
d. Adjustment for a pre-collected income if the income method of recording pre-col

f)

Total revenue 575,300.00

Merchandise inventory beg -81,700.00
Merchandise inventory end 89,200.00
Total expenses -528,140.00
Net Income 54,660.00

J. Perez, Capital Account

Beginning balance 124,215.00
Closing of Income summary 54,660.00
Closing of Drawing Account -20,000.00
Capital balance end 158,875.00
rsing Entries - the following adjusting entries need to be reversed at the beginning of the next accounting period.
ustment for an accrued income
justment for an accrued expense
ustment for a prepaid expense if the expense method of recording prepayments is used
justment for a pre-collected income if the income method of recording pre-collections is used.

Salaries Payable 2,725.00

Sales salaries expense 1,525.00
Office salaries expense 1,200.00
To reverse accrual of expense.
 Jupiter's Store
Post Closing Trial Balance
As of December 31, 2022

Debit Credit
Cash 34,150
Accounts Receivable 62,750
Allowance for bad debts 2,750
Merchandise inventory 89,200
Prepaid insurance 3,860
Store supplies 235
Office supplies 295
Store equipment 52,500
Accum. Dep'n - Store equipment 21,250
Office equipment 18,300
Accum. Dep'n - Office equipment 9,040
Accounts payable 41,650
Salaries payable 2,725
Note Payable (due in 5 years) 25,000
J. Perez, Capital 158,875
Totals 261,290 261,290