Wade Trading Wad

TRIAL BALANCE Statement of Co

December 31 2019 as of Dec
DR CR Net Sales
Cash P 62,825 Sales
Notes Receivable 74,250 Less: Sales Discount
Accounts Receivable 171,100 Sales Returns and Allow
Merchandise Inventory 60,900 Cost of Goods Sold
Furniture & Fixtures 31,000 Puchases
OfficeEquipment 14,000 Less: Purchases Discount
Notes Payables P 21,875 Puchases Returns and A
Accounts Payable 94,750 Net Purchases
Wade, Capital 265,000 Add: Freight-In
Wade, Drawing 9,500 Inventory, Beginning
Sales 572,875 Goods Available For Sa
Sales Returns 11,000 Less: Inventory, Ending
Sales Discount 6,400 Gross Profit
Purchases 390,750 Less: Expenses
Freight In 5,415 Salaries Expense
Purchase Returns 5,780 Insurance Expense
Purchase Discount 5,010 Advertising Expense
Salaries Expense 99,550 Office Supplies Expense
Rent Expense 24,000
Insurance Expense 5,250 Other Income and Expenses
Advertising Expense 2,150 Rent income
Office Supplies Expense 2,200 Rent Expense
Rent Income 5,000 Net Profit
P 970,290 P 970,290
 Wade Trading
Statement of Comprehensive Income
as of December 31, 2019 CLOSING ENTRIES
s Wa
Sales 572,875.00 GENE
Sales Discount -6,400 Date
Sales Returns and Allownces -11,000 555,475 2019
Goods Sold
Puchases 390,750
Purchases Discount -5,010
Puchases Returns and Allownace -5,780
Net Purchases 379,960
Freight-In 5,415
Inventory, Beginning 60,900
Goods Available For Sale 446,275
Inventory, Ending -70,000 376,275
ofit 179,200
Expenses
Salaries Expense 99,550.00
Insurance Expense 5,250
Advertising Expense 2,150
Office Supplies Expense 2,200 109,150
70,050
come and Expenses
Rent income 5,000
Rent Expense 24,000 -19,000
51,050
NG ENTRIES
Wade Trading
GENERAL JOURNAL

Particulars DR CR
Sales 572,875
Rent Income 5,000
Income and Expense Summary 577,875
To close Income accounts with
credit balances

Income and Expense Summary 526,825

Cost of Goods Sold 376,275
Sales Discount 6,400
Sales Returns and Allownces 11,000
Salaries Expense 99,550
Insurance Expense 5,250
Advertising Expense 2,150
Office Supplies Expense 2,200
Rent Expense 24,000
To close expense account with
debit balances

Income and Expense Summary 51,050

Wade, Capital 51,050
To close net income to capital
 JOURNAL ENTRY

DATE PARTICULARS DEBIT CREDIT

2019
Dec. 2 Accounts Receivabe 3,360
Sales 3,360
2/10, n/EOM

3 Cash 9,800
Sales 9,800

5 Accounts Receivabe 7,280

Sales 7,280
2/10; n/30

5 Freight out 672

Cash 672

11 Cash 3,292.80
Sales Discount 67.20
Accounts Receivable 3,360

13 Accounts Receivabe 11,760

Sales 11,760
1/10, n/30

14 Freight out 448

Cash 448

14 Cash 7,134.60
Sales Discount 145.40
Accounts Receivable 7,280

17 Sales Return &Allowances 1,120

Accounts Receivable 1,120

23 Accounts Receivable 5,376

Sales 5,376
2/20, n/30
23 Freight out 224
Cash 224

24 Cash 10,640
Accounts Receivable 10,640

30 Cash 5268.48
Sales Discount 107.52
Accounts Receivable 5,376
 ACCOUNTING EQUATION EXPANDED

ASSET = LIABILITIES + Revenue

CASH A/R Sales Sales discount
1 3,360 3,360
2 9800 9,800
3 -672 7,280 7,280
4 3,292.80 -3,360 -67.2
5 11,760 11,760
6 -448
7 7,134.60 -7,280 -145.40
8 -1,120
9 -224 5,376 5,376
10 5,000 -5,000
11 5,640 -5,640
12 5,268.48 -5,376 -107.52
Total 34791.88 0 0 37,576 -320.12
34,791.88
 T ACCOUNTS
DED Cash Accounts Re
dr cr
evenue Expense 2 9800 672 3 1
Sales Return Freight out 4 3292.8 448 6 3
7 7134.6 224 9 5
10 5000 9
-672 11 6760
12 5268.48
37255.88 1344
-448 35911.88

-1,120
-224 Sales Sales Dis
dr cr
3360 1 4
9800 2 7
-1,120 -1,344 7280 3 12
34,791.88 11760 5
5376 9
37576

Sales Return and Discount Freight

dr cr
8 1120 3
1120 6
9
UNTS
Accounts Receivable
dr cr
3360 3360 4
7280 7280 7
11760 1120 8
5376 5000 10
5640 11
5376 12
27776 27776
0

Sales Discount
dr cr
67.2
145.4
107.52
320.12

Freight Out
dr cr
672
448
224
1344
 WARSHOW COMPANY
Statement of Comprehensive Income
as of December 31, 2020

Net Sales

Sales 320,000
Less: Sales Discount -2,600
Sales Returns and Allownces -5,000 312,400

Cost of Goods Sold

Puchases 118,000
Less: Puchases Returns and Allownaces -32,000
Net Purchases 86,000
Add: Freight-In 7,400
Inventory, Beginning 48,000
Goods Available For Sale 141,400
Less: Inventory, Ending -22,000 119,400
Gross Profit 193,000
Expenses
Less: Utilities Expense 48,700
Miscellaneous Selling Expense 48,000
Rent Expense 122,000
Freight Out 10,500 229,200
Net Loss -36,200
 PROBLEM 4

Case Gross Profit Sales Cost of Sales Operating Expense Net Profit (Net Loss)
A 84,600 172,300 87,700 51,600 33,000
B 150,000 292,000 142,000 108,000 42,000
C 63,000 345,000 282,000 -50,000 13,000
D 160,000 250,000 90,000 130,000 30,000
E 180,000 240,000 60,000 150,000 30,000