Sunflower Wholesale Company

Statement of Financial Position

As of August 31, 2023

Assets
2021 (base year) 2022
Current Assets:
Cash P 21,000
Accounts Receivable P 25,000 P 20,000
Less: Bad debts 2,500 3,000
Accounts Receivable, net 22,500
Notes Receivable 20,000
Interest Receivable 100
Inventory 16,000
Prepaid Rent 3,000
Total of Current Assets P 82,600
Non-current Assets
Property and Equipment
Equipment P20,000 P21,000
Less: Accumulated depreciation 500 500
Equipment, net 19,500
Total Assets P 102,100

Liabilities and Shareholders ' Equity

Current Liabilities: 2021 (base year) 2022

Accounts Payable P 20,000
Interest Payable 250
Note Payable 30,000
Total of Current Liabilities P 50,250

Shareholders' equity
Shareholders' equity
Share capital P 50,000 P 47,530
Retained Earnings 1,850 51,850 2,500
Total liabilities and shareholders' equity Php 102,100
 (Increase or
Decrease)
Peso Change (%)

P 23,000 2,000 9.52%

.(5000). __________
500 __________
23,000 __________ 2.22%
22,000 2,000 __________
80 __________ -20%
17,500 1,500 __________
3,400 400 __________
P 88,980 __________ 7.72%

1,000 4.76%
0 0
21,500 2,000 ?
P 110,480 __________ __________

(Increase or
Decrease)
2022 Peso Change (%)
P 22,000 2,000 _______
450 200 _______
38,000 _______ 26.67%
P 60,450 P 10,200 _______

_______ _______
50,030 650 35.14%
P 109,980 _______ _______
 Account Title Debits Credits

Cash P 21,000
Accounts Receivable 25,000
Prepaid Rent 6,000
Inventory 16,000
Note Receivable 20,000
Equipment 20,000
Accounts Payable P20,000
Note Payable 30,000
Share Capital 50,000
Retained Earnings 1,000
Sales Revenue 40,000
Cost of Goods Sold 22,000
Salaries Expense 7,000
Utilities Expense 2,000

TOTAL P 140,000 P 140,000

a. Bad debt Expense
Bad debts
To record adjustment to allowance for uncollectible accounts.

b. Interest Expense
Interest Payable
To record accrual of interest expense on the note payable for the month of August (P30,000 x 10%

c. Depreciation Expense
Accumulated Depreciation - Equipment
To record depreciation expense for the equipment.

d. Interest Receivable
Interest Revenue
To recored accrual of interest revenue earned on the note receivable for 15 days (P20,000 x 12% x

e.Rent Expense
Prepaid Rent
To record Prepaid rent that expired during August.
2,500
2,500

250
250

500
500

100
100

3,000
3,000
 Account Title Debits Credits

Cash 21,000
Accounts Receivable 25,000
Allowance for (uncollectible accounts) 2,500
Prepaid Rent 3,000
Inventory 16,000
Interest Receivable 100
Note Receivable 20,000
Equipment 20,000
Accumulated Depreciation- Equipment 500
Accounst Payable 20,000
Interest Payable 250
Note Payable 30,000
Share Capital 50,000
Retained Earnings 1,000
Sales Revenue 40,000
Interest Revenue 100
Cost of goods sold 22,000
Salaries Expense 7,000
Utilities Expense 2,000
Bad debt Expense 2,500
Interest Expense 250
Depreciation Expense 500
Rent Expense 3,000

Total P 143,350 P 143,350

 Account Title Debits Credits Debits
Unadjusted Trial Balance
Cash 21,000
Accounts Receivable 25,000
(a) Bad debts
Prepaid Rent 6,000
Inventory 16,000
(d) Interest Receivable 100
Note Receivable 20,000
Equipment 20,000
(c) Accumulated Depreciation- Equipment
Accounts Payable P20,000
(b) Interest Payable
Note Payable 30,000
Share Capital 50,000
Retained Earnings 1,000
Sales Revenue 40,000
(d) Interest Revenue
Cost of Goods Sold 22,000
Salaries Expense 7,000
Utilities Expense 2,000
(a) Bad debt Expense 2,500
(b) Interest Expense 250
(c) Depreciation Expense 500
(e) Rent Expense 3,000

TOTALS P140,000 P140,000

Credits Debits Credits
Adjusted Trial Balance
21,000
25,000
2,500 2,500
3,000 3,000
16,000
100
20,000
20,000
500 500
20,000
250 250
30,000
50,000
1,000
40,000
100 100
22,000
7,000
2,000
2,500
250
500
3,000

P143,350 P143,350
 Sunflower Wholesale Company
Income Statement
For the month of August 2023

Sales Revenue Php 40,000

Less: Cost of goods sold 22,000
Gross Profit Php 18,000
Interest Revenue 100
Total Income Php 18,100
Less: Other Expenses
Salaries Expense Php 7,000
Utilities Expense 2,000
Bad Debt Expense 2,500
Interest Expense 250
Depreciation Expense 500
Rent Expense 3,000 Php 15,250

Net Income Php 2,850

 Wholesale Company
ome Statement
onth of August 2023
 Sunflower Wholesale Company
Statement of Financial Position
As of August 31, 2023

Assets

Current Assets:
Cash
Accounts Receivable P 25,000
Less: Bad debts 2,500
Notes Receivable
Interest Receivable
Inventory
Prepaid Rent
Total of Current Assets
Non-current Assets
Property and Equipment
Equipment P20,000
Less: Accumulated depreciation 500
Total Assets

Liabilities and Shareholders ' Equity

Current Liabilities:
Accounts Payable
Interest Payable
Note Payable
Total of Current Liabilities

Shareholders' equity
Shareholders' equity
Share capital, 5,000 shares issued and outstanding P 50,000
Retained Earnings 1,850
Total liabilities and shareholders' equity
ets

P 21,000

22,000
20,000
100
16,000
3,000
P 82,600

19,500
P 102,100

reholders ' Equity

P 20,000
250
30,000
50,250

51,850
Php 102,100
Sales Revenue 40,000
Interest Revenue 100
Income Summary 40,100

Income Summary 37,250

Cost of goods sold 22,000
Salaries Expense 7,000
Utilities Expense 2,000
Bad debt Expense 2,500
Interest Expense 250
Depreciation Expense 500
Rent Expense 3,000

Income Summary 2,850

Retained Earnings 2,850
Accounts Title Debits Credits

Cash 21,000
Account Receivable 25,000
Allowance for uncollectible accounts 2,500
Prepaid Rent 3,000
Inventory 16,000
Interest Receivable 100
Note Receivable 20,000
Equipment 20,000
Accumulated depreciation- equipment 500
Accounts Payable 20,000
Interest Payable 250
Note Payable 30,000
Share Capital 50,000
Retained Earnings 1,850

TOTALS 105,100 105,100