Data for adjustments:

a) Merchandise Inventory ending, P40,000.

b) The note receivable is a 6-month, 6% note dated August 31, 2012.
c) The interest expense is an advance interest for the 120-day, 12% loan borrowed
from a bank on December 1, 2012.
d) Office supplies used amounts to P18,000.
e) Unexpired portion of the prepaid rent is P30,000.
f) Salaries of P8,000 was erroneously debited to Misscellneous Expense.
g) Utilities expenses for December 2012 are P5,000. These are due on January 2013.
h) Doubtful account expense is 2% of sales.
i) P25,000 of the machineries were invested by the owner on January 1, 2012. These will last
10 years with no salvage value. The remaining P15,000 were acquired on account nine
months ago and will last for 5 years with P3,000 scrap value.

25000 25000/10 2500

15000 (15000-3000)/5 x 9/12 1800
4300
 Dinapraktis
Worksheet
for Year-Ended December 31, 2012

Unadjusted Adjusted
Accounts Title Trial Balance Adjustments Trial Balance
Debit Credit Debit Credit Debit
Cash 40,000 40,000
Accounts Receivable 70,000 70,000
Allowance for Doubtful Accounts 200 10,000
Merchandise Inventory 30,000 30,000
Notes Receivable 20,000 20,000
Office Supplies 30,000 18,000 12,000
Prepaid Rent 40,000 10,000 30,000
Prepaid Interest 3,200 3,200
Furniture and Fixtures 50,000 50,000
Machineries 40,000 40,000
Accounts Payable 40,000
Notes Payable 25,000
Loan Payable 80,000
Dinapraktis, Capital 264,200
Dinapraktis, Drawing 10,000 10,000
Sales 500,000
Purchases 220,000 220,000
Purchase Returns 12,000
Freight In 25,000 25,000
Salaries Expense 132,000 8,000 140,000
Miscellaneous Expense 40,000 8,000 32,000
Freight Out 13,000 13,000
Rent Expense 110,000 10,000 120,000
Interest Expense 3,200 2,400 800
Utilities Expense 45,000 5,000 50,000
TOTAL 921,400 921,400
Interest Receivable 400 400
Interest Income 400
Prepaid Interest 2,400 2,400
Supplies Expense 18,000 18,000
Utilities Payable 5,000
Doubtful Account Expense 10,000 10,000
Depreciation Expense - Machineries 4,300 4,300
Accumulated Depreciation Machineries 4,300
58,100 58,100 941,100
er 31, 2012

Adjusted Income Statement of

Trial Balance Statement Financial Position
Credit Debit Credit Debit Credit

10,200
40,000 40,000

40,000
25,000
80,000
264,200

500,000

12,000

400

5,000

4,300
941,100