ACE Trading Co.

Worksheet
For the Period ended December 3

Unadjusted Trial Balnace Adjustments

Account Titles
DR CR DR CR
Cash ₱ 520,100
Accounts Receivable 690,000
Notes Receivable 170,500
Prepaid Insurance 80,000 45,000
Store Supplies 100,750
Office Supplies 150,210 115,710
Furniture and Fixtures 830,500
Accounts Payable ₱ 450,000
Notes Payable 500,000
J. King, Capital 2,324,350
J. King, Drawing 380,000
Sales 3,800,000
Sales Returns and Allowances 130,050
Purchases 2,840,500
Purchase Discount 230,000
Transportation - in 180,600
Store Salaries 360,400
Advertising 140,500
Transportation- out 80,700
Office Salaries 240,800 12,500
Rent Expense 360,000 55,000
Other Office Expenses 50,540
Interest Income 1,800 2,900
7,306,150 7,306,150
Adjustments:
Merchandise Inventory, End
Interest Receivable 2,900
Insurance Expense 45,000
Prepaid Rent 55,000
Accrued Office Salaries 12,500
Telephone Expense 4,500
Accrued Telephone Expense 4,500
Office Supplies Expense 115,710
Depreciation Expense 83,050
Accumulated Depreciation - Furniture
and Fixtures 83,050
Bad Debt Expense 34,500
Allowance for Bad Debts 34,500
Interest Expense 4,500
Interest Payable 4,500
₱ 357,660.00 ₱ 357,660.00
Loss
 ACE Trading Co.
Worksheet
the Period ended December 31, 2008

Adjusted Trial Balance Income Statement Balance Sheet

DR CR DR CR DR
₱ 520,100 ₱ 520,100
690,000 690,000
170,500 170,500
35,000 35,000
100,750 100,750
34,500 34,500
830,500 830,500
₱ 450,000
500,000
2,324,350
380,000 380,000
3,800,000 ₱ 3,800,000
130,050 ₱ 130,050
2,840,500 2,840,500
230,000 230,000
180,600 180,600
360,400 360,400
140,500 140,500
80,700 80,700
253,300 253,300
305,000 305,000
50,540 50,540
4,700 4,700

565,000 565,000
2,900 2,900
45,000 45,000
55,000 55,000
12,500
4,500 4,500
4,500
115,710 115,710
83,050 83,050

83,050
34,500 34,500
34,500
4,500 4,500
 4,500
₱ 7,448,100.00 ₱ 7,448,100.00 4,628,850 4,599,700 3,384,250
29,150 29,150
₱ 4,628,850.00 ₱ 4,628,850.00 ₱ 3,413,400.00
Balance Sheet
CR

₱ 450,000.00
500,000
2,324,350

12,500

4,500

83,050

34,500
 4,500
3,413,400

₱ 3,413,400.00
 ACE Trading Co.
Statement of Financial Performance
For the Period Ended December 31, 2008

Sales ₱ 3,800,000
Less: Sales Returns and Allowances 130,050
Net Sales 3,669,950

Cost of Goods Sold

Purchases ₱ 2,840,500
Less: Purchase Discount 230,000
Net Purchases 2,610,500
Transportation - in 180,600
Good Available for Sale 2,791,100
Less: Merchandise Inventory, End 565,000
Cost of Sales 2,226,100
Gross Profit 1,443,850
Add: Interest Income 4,700
less: Operating Expenses
General and Administrative Expenses
Store Salaries 360,400
Transportation- out 80,700
Office Salaries 253,300
Rent Expense 305,000
Other Office Expenses 50,540
Insurance Expense 45,000
Telephone Expense 4,500
Office Supplies Expense 115,710
Depreciation Expense 83,050
Bad Debt Expense 34,500
Interest Expense 4,500 1,337,200
Selling and Advertising Expenses
Advertising 140,500
Net Loss -₱ 29,150
 ACE Trading Co.
Statement of Financial Position
As of December 31, 2008

ASSETS
Current Assets
Cash
Accounts Receivable ₱ 690,000
Less: Allowance for Bad Debts 34,500
Notes Receivable
Interest Receivable
Merchandise Inventory, End
Store Supplies
Office Supplies
Prepaid Insurance
Prepaid Rent
Total Current Assets

Non-Current Assets
Furniture and Fixtures 830,500
Less: Accumulated Depreciation - Furniture and Fixtures 83,050
Total Non-Current Assets
TOTAL ASSETS

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Accounts Payable
Notes Payable
Accrued Office Salaries
Accrued Telephone Expense
Interest Payable
Total Current Liabilities

Owner's Equity
J. King, Capital
TOTAL LIABILITIES AND OWNER'S EQUITY
 ACE Trading Co.
Statement of Changes in Owner's Equity
For the Period Ended December 31, 2008

J. King, Beginning Capital ₱ 2,324,350

Less: Loss 29,150
₱ 520,100 Withdrawals 380,000
J. King, Ending Capital ₱ 1,915,200
655,500
170,500
2,900
565,000
100,750
34,500
35,000
55,000
₱ 2,139,250

₱ 747,450
₱ 747,450
₱ 2,886,700

450,000
500,000
12,500
4,500
4,500
₱ 971,500

1,915,200
₱ 2,886,700
December 31 Adjustments
Interest Receivable ₱ 2,900
Interest Income ₱ 2,900

Insurance Expense 45,000

Prepaid Insurance 45,000

Prepaid Rent 55,000

Rent Expense 55,000

Office Salaries 12,500

Accrued Office Salaries 12,500

Telephone Expense 4,500

Telephone Payable 4,500

Office Supplies Expense 115,710

Office Supplies 115,710

Depreciation Expense 83,050

Accumulated Depreciation - Furniture and
Fixtures 83,050

Bad Debt Expense 34,500

Allowance for Bad Debts 34,500

Interest Expense 4,500

Interest Payable 4,500

Closing entries
Sales 3,800,000
Sales Returns and Allowances 130,050
Income and Expense Summary 3,669,950

Income and Expense Summary 2,226,100

Purchase Discount 230,000
Merchandise Inventory, End 565,000
Transportation - in 180,600
Purchases 2,840,500

Income and Expense Summary 4,700

Interest Income 4,700

Income and Expense Summary 1,477,700

 Store Salaries 360,400
Transportation- out 80,700
Office Salaries 253,300
Rent Expense 305,000
Other Office Expenses 50,540
Insurance Expense 45,000
Telephone Expense 4,500
Office Supplies Expense 115,710
Depreciation Expense 83,050
Bad Debt Expense 34,500
Interest Expense 4,500
Advertising 140,500

J. King,Capital 29,150
Income and Expense Summary 29,150

J. King,Capital 380,000
J. King, Drawing 380,000

Reversing Entries
Interest Income 2,900
Interest Receivable 2,900

Rent Expense 55,000

Prepaid Rent 55,000

Accrued Office Salaries 12,500

Office Salaries 12,500

Telephone Payable 4,500

Telephone Expense 4,500

Interest Payable 4,500

Interest Expense 4,500