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CRUZ Chapter1 Review of The Accounting Cycle
CRUZ Chapter1 Review of The Accounting Cycle
All othe
objects on each Numbers sheet were placed on separate worksheets. Please be aware that formula
calculations may differ in Excel.
December transactions
Posting T-Accounts
Posting T-Accounts
Sheet3
Worksheet preparation
Financial Statements
cash flow
Closing entries
post-closing TB
Reversing Entries
Joseph Landscaping and Plant Store
Trial Balance
November 30, 2023
3
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700 P 2,197,700
4
Date Account Titles and Explanation P/R Debit Credit
Dec. 1 Notes Receivable 105 20,000
Sales 502 20,000
Argem Day Care Center issued a 12% note payable in 3-months
5
Issued Memorandum credit memorandum
6
26 Sales Returns and Allowances 502-B 1,000
Cash in Bank 104 1,000
Rafael Novelty Shop returned defective merchandise
7
Joseph Lanscaping and Plant Store
T-accounts Joseph Landscaping and Plant Store
December 31, 2023 Trial Balance
November 30, 2023
Assets Cash in Bank Petty Cash fund FA @ FVTPL Accounts Receivable Notes Receivable Allow for DA MI, Jan 1 Office Supplies on Hand Store Supplies on Hand Land Building AD - Bldg Equipment AD - Equipment Furniture and Fixture AD - F&F
95,000 10,000 10,000 100,000 95,000 1,000 20,000 7,000 17,800 10,500 131 15,000 500 400,000 440,000 57,600 220,000 50,000 120,000 44,000 Account Title Debit
15,000 800 15,000 49,000 10,000 5,000 59 Cash in Bank P 95,000
20,000 1,200 50,000 15,000 Petty Cash Fund 10,000
50,000 5,000 50,000 Financial Assets at Fair Value through Profit or Loss 100,000
48,510 5,000 Accounts Receivable 95,000
15,000 9,210 Allowance for Doubtful Accounts
9,310 Merchandise Inventory, January 1 17,800
1,000 Office Supplies on Hand 10,500
201,990 10,000 100,000 145,000 20,000 7,000 17,800 20,369 19,441 400,000 440,000 57,600 220,000 50,000 120,000 44,000 Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building
Liabilities/Capital Accounts Payable Notes Payable WT Payable Mortgage Payable JdJ, Capital JdJ, Drawing Equipment 220,000
500 37,000 12,000 5,600 200,000 842,950 10,000 Accumulated Depreciation-Equipment
5,000 15,000 20,000 8,000 Furniture and Fixture 120,000
9,500 10,000 Accumulated Depreciation – Furniture
500 Accounts Payable
9,500 Notes Payable
37,000 12,000 5,600 200,000 862,950 18,000 Withholding Taxes Payable
Mortgage Payable
Joseph de Jesus, Capital
Joseph de Jesus, Drawing 10,000
Income/Expense Service Income Sales SD SRA Purchases Purchases Discounts Sales Returns and Allowances Freight in Freight out SW Expenses Insurance Expense Utilities Expense RM Expense SSS, PHID & PI Misc Expense Interest Expense Service Income
140,000 776,850 15,000 12,500 325,000 8,000 10,000 14,700 6,850 9,500 194,000 28,450 26,000 16,750 11,550 12,400 6,400 Sales
30,000 20,000 490 1,000 25,000 290 500 800 1,200 Sales Discounts 15,000
50,000 70,000 1,000 20,000 Sales Returns and Allowances 12,500
50,000 Purchases 325,000
Purchases Discounts
220,000 916,850 15,490 14,500 362,000 10,290 15,200 7,650 10,700 194,000 28,450 26,000 16,750 11,550 12,400 6,400 Purchases Returns and Allowances
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700
8
Joseph Landscaping and Plant Store
Trial Balance
November 30, 2023
Credit
7,000
P 57,600
50,000
44,000
37,000
12,000
5,600
200,000
842,950
140,000
776,850
10,000
14,700
P 2,197,700
9
ASSETS
Cash in bank Joseph de Jesus, Capital Purchases
95,000 10,000 842,950 325,000
15,000 800 20,000 25,000
20,000 1,200 862,950 20,000
50,000 5,000 362,000
48,510 5,000
15,000 9,210 Joseph de Jesus, Drawing
9,310 10,000 Freight in
40,520 8,000 6,850
201,990 1,000 18,000 800
7,650
Petty Cash Fund
10,000 Sales
10,000 776,850 Freight out
20,000 9,500
Financial Assets at Fair Value through Profit or Loss 70,000 1,200
100,000 50,000 10,700
100,000 916,850
10
Office Supplies on Hand
10,500 131 Service Income
10,000 140,000
20,369 131 30,000
50,000
220,000
Store Supplies on Hand
15,000 500
5,000 59
19,441 559
Accounts Payable
500 37,000
5,000 15,000
9,500 10,000
500
9,500
25,000 37,000
11
Merchandise Inventory, 17,800
January 1
Office Supplies on Hand 10,500
Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated P 57,600
Depreciation-Building
Equipment 220,000
Accumulated 50,000
Depreciation-Equipment
Furniture and Fixture 120,000
Accumulated 44,000
Depreciation – Furniture
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes
Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 842,950
Joseph de Jesus, 10,000
Drawing
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and 12,500
Allowances
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and 14,700
Allowances
Freight in 6,850
Freight out 9,500
Salaries and Wages 194,000
Expense
Insurance Expense 28,450
12
Utilities Expense 26,000
Repairs and
Maintenance Expense 16,750
SSS, Philhealth, and 11,550
Pag-ibig Expense
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700 P 2,197,700
13
Purchases
8,000
8,000
Freight in
Freight out
Purchase Discount
10,000
290
10,290
14
15
16
17
18
19
20
21
ASSETS
Cash in Bank 201,990
Notes Receivable 20,000
Accounts Receivable 144,000
Office Supplies on Hand 20,369
Store Supplies on Hand 19,441
22
Joseph Landscaping And Plant Store
Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Investments in Trading Securities 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 7,000
Notes Receivable 20,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 20,369
Store Supplies on Hand 19,441
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
23
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Totals 2,438,490 2,438,490
24
ADJUSTING ENTRIES DR CR Posting to T-Accounts
(a) Interest Receivable 200
Interest Income 200
25
26
to T-Accounts
27
28
Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Unadjusted Adjusted Income
Trial balance Adjustments Trial balance Statement
Account Title Debit Credit Debit Credit Debit Credit Debit
Cash in Bank 201,990 201,990
Petty Cash Fund 10,000 10,000
Investments in Trading Securities 100,000 100,000
Accounts Receivable 145,000 145,000
Allowance for Doubtful Accounts 7,000 4,600 11,600
Notes Receivable 20,000 20,000
Merchandise Inventory, January 1 17,800 17,800 17,800
Office Supplies on Hand 20,369 14,080 6,289
Store Supplies on Hand 19,441 14,500 4,941
Land 400,000 400,000
Buildings 440,000 440,000
Accumulated Depreciation-Building 57,600 28,800 86,400
Equipment 220,000 220,000
Accumulated Depreciation-Equipment 50,000 25,000 75,000
Furniture and Fixture 120,000 120,000
Accumulated Depreciation – Furniture 44,000 22,000 66,000
Accounts Payable 37,000 37,000
Notes Payable 12,000 12,000
Withholding Taxes Payable 5,600 5,600
Mortgage Payable 200,000 200,000
Joseph de Jesus, Capital 862,950 862,950
Joseph de Jesus, Drawing 18,000 18,000
Service Income 220,000 220,000
Sales 916,850 916,850
29
Sales Discounts 15,490 15,490 15,490
Sales Returns and Allowances 14,500 14,500 14,500
Purchases 362,000 362,000 362,000
Purchases Discounts 10,290 10,290
Purchases Returns and Allowances 15,200 15,200
Freight in 7,650 7,650 7,650
Freight out 10,700 10,700 10,700
Salaries and Wages Expense 194,000 194,000 194,000
Insurance Expense 28,450 28,450 28,450
Utilities Expense 26,000 7,200 33,200 33,200
Repairs and Maintenance Expense 16,750 16,750 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550 11,550 11,550
Miscellaneous Expense 12,400 12,400 12,400
Interest Expense 6,400 330 6,730 6,730
Interest Receivable 200 200
Interest Income 200 200
Utilities Payable 7,200 7,200
Interest Payable 330 330
Office Supplies Expense 14,080 14,080 14,080
Store Supplies Expense 14,500 14,500 14,500
Doubtful Accounts Expense 4,600 4,600 4,600
Depreciation Expense 75,800 75,800 75,800
Merchandise Inventory, Dec 31 12,850 12,850
Income Summary 12,850 12,850
TOTAL 238,490 238,490 129,560 129,560 2,539,470 2,539,470 840,200
335,190
1,175,390
30
Income Statement of
Statement Financial Position
Credit Debit Credit
201,990
10,000
100,000
145,000
11,600
20,000
6,289
4,941
400,000
440,000
86,400
220,000
75,000
120,000
66,000
37,000
12,000
5,600
200,000
862,950
18,000
220,000
916,850
31
10,290
15,200
200
200
7,200
330
12,850
12,850
1,175,390 1,699,270 1,364,080
335,190
1,175,390 1,699,270 1,699,270
32
Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Account Title Debit Credit
Cash in Bank 201,990 0
Petty Cash Fund 10,000 0
Investments in Trading Securities 100,000 0
Accounts Receivable 145,000 0
Allowance for Doubtful Accounts 0 11,600
Notes Receivable 20,000 0
Merchandise Inventory, January 1 17,800 0
Office Supplies on Hand 6,289 0
Store Supplies on Hand 4,941 0
Land 400,000 0
Buildings 440,000 0
Accumulated Depreciation-Building 0 86,400
Equipment 220,000 0
Accumulated Depreciation-Equipment 0 75,000
Furniture and Fixture 120,000 0
Accumulated Depreciation – Furniture 0 66,000
Accounts Payable 0 37,000
Notes Payable 0 12,000
Withholding Taxes Payable 0 5,600
Mortgage Payable 0 200,000
Joseph de Jesus, Capital 0 862,950
Joseph de Jesus, Drawing 18,000 0
Service Income 0 220,000
Sales 0 916,850
Sales Discounts 15,490 0
Sales Returns and Allowances 14,500 0
Purchases 362,000 0
Purchases Discounts 0 10,290
Purchases Returns and Allowances 0 15,200
33
Freight in 7,650 0
Freight out 10,700 0
Salaries and Wages Expense 194,000 0
Insurance Expense 28,450 0
Utilities Expense 33,200 0
Repairs and Maintenance Expense 16,750 0
SSS, Philhealth, and Pag-ibig Expense 11,550 0
Miscellaneous Expense 12,400 0
Interest Expense 6,730 0
Interest Receivable 200 0
Interest Income 0 200
Utilities Payable 0 7,200
Interest Payable 0 330
Office Supplies Expense 14,080 0
Store Supplies Expense 14,500 0
Doubtful Accounts Expense 4,600 0
Depreciation Expense 75,800 0
Merchandise Inventory, Dec 31 12,850 0
Income Summary 0 12,850
₱2,539,470 ₱2,539,470.0
34
Joseph Landscaping and Plant Store
Statement of Financial Position
December 31, 2023
ASSETS
Current Assets
Cash In Bank 201,990
Accounts Receivable 145,000
Land 400,000
Buildings 440,000
Non-Current Assets
Investments in Trading Securities 100,000
Total Assets
Total Liabilities
Owner's Equity
35
Notes to the Financial Statement
Note 5: Cash
36
37
Joseph Landscaping and Plant Store
Income Statement
For the year ended December 31, 2023
Note
Net Sales Revenue and Service Inc 1 P 1,106,860
Cost of Sales 2 349,110
Gross Profit P 757,750
Operating Expenses
Administrative expense 3 390,830
distribution expense 4 25,200
miscellaneous expense 12,400
interest expense 6,730 435,160
Net income P 322,590
38
P 1,180,140
39
40
Note 1: Net Sales Revenue and Service Income
Service Income 220,000
Sales 916,850
Sales Discounts -15490
Sales Returns and Allowances -14,500 886,860
Net Sales Revenue and Service Income P 1,106,860
41
Note 4: Distribution expenses
42
43
Joseph Landscaping and Plants Store
Statement of Cash Flows
For the year ended December 31, 2023
Cash flows from operating activities
Inflow
Cash Sales 518,895
Cash from landscaping services 170,000
Collection on accounts receivable 172,965
861,860
Outflow
Payment for account purchases 336,510
Payment for various operating expenses 336,080
payment of interest 6,400
678,990
Net cash from operating activities 182,870
44
Recall that Merchandise Inventory, December 31 was recorded as part of the adjusting entry shown as follows:
Dec. 31
Dec. 31
45
Dec. 31
46
Joseph Landscaping And Plant Store
Post-Closing Trial Balance
December 31, 2019
Account Title Debit Credit
47
REVERSING ENTRIES
January 1, 2020
(a)
(b)
(c)
48