Coolo Co

Worksheet
For the month ended December 31, 2006
Account Title Trial Balance Adjustments Adjusted Trial balance
Dr Cr Dr Cr Dr
Cash 11,165 11,165
Accounts Receivable 86,100 86,100
Merchandise Inventory 235,000 6,400 228,600
Prepaid insurance 10,600 9,500 1,100
Store supplies 3,750 2,550 1,200
office supplies 1,700 800 900
store equipment 225,000 225,000
accumulated depreciation-
Store equipment 40,300 8,500
Office equipment 72,000 72,000
accumulated depreciation-
office equipment 17,200 4,500
accounts payable 56,700
salaries payable 0 2,200
unearned rent 1,200 800
note payable
(final payment due 2016) 185,000
Doug west, capital 282,100
Doug West, Drawing 40,000 40,000
Income summary 0
Sales 847,500
Sales returns and allowances 15,500 15,500
sales discounts 6,000 6,000
cost of merchandise sold 501,200 6,400 507,600
sales salaries expense 86,400 1,450 87,850
advertising expense 29,450 29,450
depreciation expense-
store equipment 0 8,500 8,500
store supplies expense 0 2,550 2,550
miscellaneous selling expense 1,885 1,885
office salaries expense 60,000 750 60,750
rent expense 30,000 30,000
insurance expense 0 9,500 9,500
depreciation expense-
office equipment 0 4,500 4,500
office supplies expense 0 800 800
miscellaneous administrative
expense 1,650 1,650
rent revenue 0 800
interest expense 12,600 12,600
1,430,000 1430000 35250 35250 1,445,200
Net income
a. merchandise inventory shrinkage for period, 6,400
(235,000-228,600)
b. insurance expired, 9,500
c. store supplies used 2,550 (3,750-1,200)
d. office supplies used 800 (1,700-900)
e. Depreciation of store equipment 8,500
f. Depreciation of office equipment 4,500
g sales salaries payable 1,450
h. office salaries payable 750
(salaries payable 1,450+750=2,200)
i. unearned rent 400
 nded December 31, 2006
djusted Trial balance Balance Sheet Revenue from sales:
Cr Dr Cr Dr Cr sales
11,165 less sales returns and allow
86,100 sales discounts
228,600 Net sales
1,100 cost from merchandise sold
1,200 gross profit
900
225,000 operating expenses:
selling expenses:
48,800 48,800 sales saleries expense
72,000 advertising expense
depr. expense- store eq
21,700 21,700 store supplies expense
56,700 56,700 miscellaneous selling ex
2,200 2,200 total selling expense
400 400 administrative expenses :
office salaries expense
185,000 185,000 rent expense
282,100 282,100 insurance expense
40,000 depr. Expense- office eq
0 office supplies expense
847,500 847,500 misc. administrative exp
15,500 total administrativ
6,000 total operating expenses
507,600 income from operations
87,850
29,450 other income and expense:
Rent revenue
8,500 Interest expense
2,550 net income
1,885
60,750
30,000
9,500

4,500
800

1,650
800 800
12,600
1445200 779135 848300 666,065 596900
69,165 69,165
848,300 848,300 666,065 666,065
 Coolo Co
Income statement Statement of owners e
for the month ended December 31, 2006 for the month ended December 3

847,500 Doug West, capital, December 1 2006

sales returns and allowances 15,500 Net income
sales discounts 6,000 21,500 less withdrawals
826,000 increase in owners equity
merchandise sold 507,600 Doug West, capital, December 31 2006
318,400
Coolo Co
adjusting entries
ng expenses: for the month ended december 3
sales saleries expense 87,850 date item
advertising expense 29,450 31 cost of merchandise sold
depr. expense- store equipment 8,500 merchandise inventory
store supplies expense 2,550 31 insurance expense
miscellaneous selling expense 1,885 prepaid insurance
total selling expense 130,235 31 store supplies expense
ministrative expenses : store supplies
office salaries expense 60,750 31 office supplies expense
rent expense 30,000 office supplies
insurance expense 9,500 31 depr. Expense-store equipment
depr. Expense- office equipment 4,500 accum. Depr. Expense-
office supplies expense 800 store equipment
misc. administrative expense 1,650 31 depr. Expense-office equipment
total administrative expenses 107,200 accum. Depr. Expense
al operating expenses 237,435 office equipment
om operations 80,965 31 sales salarie expense
office salaries expense
ome and expense: salaries payable
800 31 unearned rent
rest expense -12,600 -11,800 rent revenue
69,165
 Coolo Co Coolo Co
Statement of owners equity Balance sheet
onth ended December 31, 2006 For the mont ended December 31, 2006
ASSET
December 1 2006 282,100 Current Asset:
69,165 Cash
40,000 Account erceivable
29,165 merchandise inventory
December 31 2006 311,265 prepaid insurance
store supplies
office supplies
adjusting entries total current assets
onth ended december 31 2006 property, plant, and equipment :
debit credit store equipment 225,000
6,400 less accum. Depr. store equipment 48,800
6,400 office equipment 72,000
9,500 less accum. Depr. Office equipment 21,700
9,500 total property, plant, and
2,550 equipment
2,550 total assets
800 LIABILITIES
800 Current Liabilities:
8,500 Account payable
salaries payable
8,500 unearned rent
4,500 Note payable (current portion)
total current liabilities
4,500 Long term liabilities:
1,450 note payable (final payment due 2016)
750 total liabilities
2,200 OWNER'S EQUITY
800 Doug west, capital
800 total liabilities and owners equity
35,250 35250
 Coolo Co
Closing entries
for the mont ended December 31, 2006
Date item post ref.
Closing entries
11,165 31-Dec sales
86,100 rent revenue
228,600 income summary
1,100 31 Income summary
1,200 Sales return and allowances
900 Sales discounts
329,065 cost of merchandise sold
sales salaries expense
advertising expense
176,200 depr. Expense- store equipment
store supplies expense
50,300 miscellaneous selling expense
office salaries expense
226,500 rent expense
555,565 insurance expense
depr. Expense- office equipment
office supplies expense
56,700 misc. administrative expense
2,200 interest expense
400 31 Income summary
25,000 Doug west, capital
84,300 31 Doug West, capital
Doug west, drawing
160,000
244,300

311,265
555,565
d December 31, 2006
debit credit

847,500
800
848,300
778,735
15,500
6,000
507,600
87,450
29,450
8,500
2,550
1,885
60,750
30,000
9,500
4,500
800
1,650
12,600
69,165
69,165
40,000
l