Joseph Landscaping and Plant Store

Trial Balance
November 30, 2019

Account Title Debit Credit

Cash in Bank P 95,000
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 95,000
Allowance for Doubtful Accounts 7,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 10,500
Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building P 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 842,950
Joseph de Jesus, Drawing 10,000
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and Allowances 12,500
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and Allowances 14,700
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
DATE PARTICULARS P/R DEBIT CREDIT

Dec. 1 Notes Receivable 105 20,000

Sales 402 20,000

2 Purchases 405 25,000

Cash in Bank 101 10,000
Accounts Payable 201 15,000

2 Freight In 408 800

Cash in Bank 101 800

3 Accounts Receivable 104 15,000

Cash in Bank 101 15,000
Service Income 401 30,000

4 Cash in Bank 101 20,000

Accounts Receivable 104 50,000
Sales 402 70,000

4 Freight Out 409 1,200

Cash in Bank 101 1,200

5 Accounts Payable 201 500

Purchases Returns and Allowances 407 500

6 Purchases 405 20,000

Joseph de Jesus, Capital 301 20,000

7 Sales Returns and Allowances 404 1,000

 Accounts Receivable 104 1,000

8 Cash in Bank 101 50,000

Sales 402 50,000

9 Accounts Payable 201 5,000

Cash in Bank 101 5,000

10 Office Supplies on Hand 107 5,000

Store Supplies on Hand 108 10,000
Cash in Bank 101 5,000
Accounts Payable 201 10,000

12 Accounts Payable 201 14,500

Cash in Bank 101 14,500

15 Joseph de Jesus, Drawing 302 8,000

Purchases Returns and Allowances 407 8,000

17 Accounts Payable 201 500

Store Supplies on Hand 108 500

19 Cash in Bank 101 49,000

Accounts Receivable 104 49,000

20 Accounts Payable 201 9,500

Cash in Bank 101 9,500
26 Sales Returns and Allowances 404 1,000
Accounts Receivable 104 1,000

28 Accounts Receivable 104 50,000

Service Income 401 50,000

31 Cash in Bank 101 15,000

Accounts Receivable 104 15,000
Account P/R Date Debit Credit Balance
Debit (Credit)

Cash in Bank 101 11/30/2020 95,000.00 95,000.00

Cash in Bank 101 2/12/2020 10,000.00 85,000.00
Cash in Bank 101 2/12/2020 800.00 84,200.00
Cash in Bank 101 3/12/2020 15,000.00 99,200.00
Cash in Bank 101 4/12/2020 20,000.00 119,200.00
Cash in Bank 101 4/12/2020 1,200.00 118,000.00
Cash in Bank 101 8/12/2020 50,000.00 168,000.00
Cash in Bank 101 9/12/2020 5,000.00 163,000.00
Cash in Bank 101 10/12/2020 5,000.00 158,000.00
Cash in Bank 101 12/12/2020 14,500.00 143,500.00
Cash in Bank 101 12/19/2020 49,000.00 192,500.00
Cash in Bank 101 12/20/2020 9,500.00 183,000.00
Cash in Bank 101 12/31/2020 15,000.00 198,000.00

Petty Cash Fund 102 11/30/2020 10,000.00 10,000.00

Financial Assets at Fair Value through P103 11/30/2020 100,000.00 100,000.00

Accounts Receivable 104 11/30/2020 95,000.00 95,000.00

Accounts Receivable 104 3/12/2020 15,000.00 110,000.00
Accounts Receivable 104 4/12/2020 50,000.00 160,000.00
Accounts Receivable 104 7/12/2020 1,000.00 159,000.00
Accounts Receivable 104 12/19/2020 49,000.00 110,000.00
Accounts Receivable 104 12/26/2020 1,000.00 109,000.00
Accounts Receivable 104 12/28/2020 50,000.00 159,000.00
Accounts Receivable 104 12/31/2020 15,000.00 144,000.00

Notes Receivable 105 1/12/2020 20,000.00 20,000.00

Merchandise Inventory 106 11/30/2020 17,800.00 17,800.00

Office Supplies on Hand 107 11/30/2020 10,500.00 10,500.00

Office Supplies on Hand 107 10/12/2020 5,000.00 15,500.00

Store Supplies on Hand 108 11/30/2020 15,000.00 15,000.00

Store Supplies on Hand 108 10/12/2020 10,000.00 25,000.00
Store Supplies on Hand 108 12/17/2020 500.00 24,500.00

Land 109 11/30/2020 400,000.00 400,000.00

Buildings 110 11/30/2020 440,000.00 440,000.00

Equipment 111 11/30/2020 220,000.00 220,000.00

Furniture and Fixture 112 11/30/2020 120,000.00 120,000.00

Accounts Payable 201 11/30/2020 37,000.00 (37,000.00)

Accounts Payable 201 2/12/2020 15,000.00 (52,000.00)
Accounts Payable 201 5/12/2020 500.00 (51,500.00)
Accounts Payable 201 9/12/2020 5,000.00 (46,500.00)
Accounts Payable 201 10/12/2020 10,000.00 (56,500.00)
Accounts Payable 201 12/12/2020 14,500.00 (42,000.00)
Accounts Payable 201 12/17/2020 500.00 (41,500.00)
Accounts Payable 201 12/20/2020 9,500.00 (32,000.00)

Notes Payable 202 11/30/2020 12,000.00 (12,000.00)

Withholding Taxes Payable 203 11/30/2020 5,600.00 (5,600.00)

Mortgage Payable 204 11/30/2020 200,000.00 (200,000.00)

Joseph de Jesus, Capital 301 11/30/2020 842,950.00 (842,950.00)

Joseph de Jesus, Capital 301 6/12/2020 20,000.00 (862,950.00)

Joseph de Jesus, Drawing 302 11/30/2020 10,000.00 10,000.00

Joseph de Jesus, Drawing 302 12/15/2020 8,000.00 18,000.00

Service Income 401 11/30/2020 140,000.00 (140,000.00)

Service Income 401 3/12/2020 30,000.00 (170,000.00)
Service Income 401 12/28/2020 50,000.00 (220,000.00)

Sales 402 11/30/2020 776,850.00 (776,850.00)

Sales 402 1/12/2020 20,000.00 (796,850.00)
Sales 402 4/12/2020 70,000.00 (866,850.00)
Sales 402 8/12/2020 50,000.00 (916,850.00)

Sales Discounts 403 11/30/2020 15,000.00 15,000.00

Sales Returns and Allowances 404 11/30/2020 12,500.00 12,500.00

Sales Returns and Allowances 404 7/12/2020 1,000.00 13,500.00
Sales Returns and Allowances 404 12/26/2020 1,000.00 14,500.00

Purchases 405 11/30/2020 325,000.00 325,000.00

Purchases 405 2/12/2020 25,000.00 350,000.00
Purchases 405 6/12/2020 20,000.00 370,000.00
Purchases Discounts 406 11/30/2020 10,000.00 (10,000.00)

Purchases Returns and Allowances 407 11/30/2020 14,700.00 (14,700.00)

Purchases Returns and Allowances 407 5/12/2020 500.00 (15,200.00)
Purchases Returns and Allowances 407 12/15/2020 8,000.00 (23,200.00)

Freight in 408 11/30/2020 6,850.00 6,850.00

Freight in 408 2/12/2020 800.00 7,650.00

Freight out 409 11/30/2020 9,500.00 9,500.00

Freight out 409 4/12/2020 1,200.00 10,700.00

Salaries and Wages Expense 410 11/30/2020 194,000.00 194,000.00

Insurance Expense 411 11/30/2020 28,450.00 28,450.00

Utilities Expense 412 11/30/2020 26,000.00 26,000.00

Repairs and Maintenance Expense 413 11/30/2020 16,750.00 16,750.00

SSS, Philhealth, and Pag-ibig Expense 414 11/30/2020 11,550.00 11,550.00

Miscellaneous Expense 415 11/30/2020 12,400.00 12,400.00

Interest Expense 416 11/30/2020 6,400.00 6,400.00

Allowance for Doubtful Accounts 104-1 11/30/2020 7,000.00 (7,000.00)

Accumulated Depreciation-Building 110-1 11/30/2020 57,600.00 (57,600.00)

Accumulated Depreciation-Equipment 111-1 11/30/2020 50,000.00 (50,000.00)

Accumulated Depreciation – Furniture 112-1 11/30/2020 44,000.00 (44,000.00)

 Joseph Landscaping And Plant Store
Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 198,000
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 144,000
Allowance for Doubtful Accounts 7,000
Notes Receivable 20,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 15,500
Store Supplies on Hand 24,500
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 32,000
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 15,000
Sales Returns and Allowances 14,500
Purchases 370,000
Purchases Discounts 10,000
Purchases Returns and Allowances 23,200
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 2,441,200 2,441,200
DATE PARTICULARS P/R DEBIT CREDIT

(a) Interest Receivable 200

Interest Income 200

(b) Utilities Expense 7,200

Utilities Payable 7200

(c) Interest Expense 330

Interest Payable 330

(d) Store and office supplies expense 28,580

Store and office supplies expense on Hand 28,580

(e) Doubtful Accounts Expense 4,520

Allowance for Doubtful Expense 4520

ADA, Beg 7,000

Required Allowance 11,520
Additional 4,520

(f) Depreciation Expense 75,800

Accumulated Depreciation - Building 28800
Accumulated Depreciation - Equipment 25000
Accumulated Depreciation - Furniture 22000

(g) Merchandise Inventory 12,850

Income Summary 12,850
Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2019
Unadjusted Adjusted Income
Trial balance Adjustments Trial balance Statement
Account Title Debit Credit Debit Credit Debit Credit Debit
Cash in Bank 198,000 198,000
Petty Cash Fund 10,000 10,000
Financial Assets at Fair Value through Profit or Loss 100,000 100,000
Accounts Receivable 144,000 144,000
Allowance for Doubtful Accounts 7,000 4,520 11,520
Notes Receivable 20,000 20,000
Merchandise Inventory 17,800 17,800 17,800
Office Supplies on Hand 40,000 28,580 11,420
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 32,000 32,000
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
Sales Discounts 15,000 15,000 15,000
Sales Returns and Allowances 14500 14,500 14,500
Purchases 370000 370,000 370,000
Purchases Discounts 10000 10,000
Purchases Returns and Allowances 23200 23,200
Freight in 7,650 7,650 7,650
Freight out 10,700 10,700 10,700
Salaries and Wages Expense 194000 194,000 194,000
Insurance Expense 28450 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
Store and Office Supplies Expense 28,580 28,580 28,580
Doubtful accounts expense 4,520 4,520 4,520
Depreciation Expense 75,800 75,800 75,800

Income Summary 17,800 12,850 4,950

Total 2,441,200 2,441,200 134,430 129,480 2,534,200 2,529,250 847,630

Net Income 335,470
P 1183100
 Income Statement of
Statement Financial Position
Credit Debit Credit
198,000
10,000
100,000
144,000
11,520
20,000
12,850 12,850
11,420
400,000
440,000
86,400
220,000
75,000
120,000
66,000
32,000
12,000
5,600
200,000
862,950
18,000
220,000
916,850
 10,000
23,200

200
200
7,200
330

1,183,100 1,694,470 1,359,000

335,470
P 1183100 P 1694470 P 1694470
 Joseph Landscaping and Plant Store
Income Statement
For the year ended December 31, 2019

Note
Net sales revenue (1) P 1,107,350
Cost of sales (2) -349,400
Gross profit P 757,950
Operating expenses:
Administrative expenses (3) -P 405,250
Distribution expenses (4) -P 10,700
Operating Profit P 342,000
Net Interest Expense (5) -P 6,530
Net income P 335,470 -

Joseph Landscaping and Plant Store

Statement of Changes in Owner's Equity
For the year ended December 31, 2019

Joseph de Jesus, Capital, Beg P 842,950

Add: Additional Investment P 20,000
Less: Withdrawal -P 18,000
Add: Net Income P 335,470
Joseph de Jesus, Capital, Ending P 1,180,420
 Joseph Landscaping and Plant Store
Statement of Financial Position
As of December 31, 2019

ASSETS
Current Assets
Cash (6) 208,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable- Net Realizable Value (7) 132,480
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory 12,850
Office and Store Supplies on Hand 11,420 484,950

Non-Current Assets:
Property, Plant and Equipment (7) 952,600 952,600

Total Assets 1,437,550

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Accounts Payable 32,000
Utilities Payable 7,200
Withholding Taxes Payable 5,600
Interest Payable 330 45,130

Non-Current Liabilities:
Notes Payable 12000
Mortgage Payable 200000 212,000
Total Liabilities 257,130

Joseph de Jesus, Capital P 1,180,420

Total Owner's Equity 1,180,420

Total Liabilities and Owner's Equity 1,437,550 -

Notes to the Financial Statement

Note 1
Sales Revenue 916,850
Service Income 220,000
Total sales revenue and Service Income 1,136,850
less: Sales Returns and Allowances -14,500
less: Sales Discounts -15,000
Net sales revenue and Service Income P 1,107,350

Note 2
Merchandise Inventory, January 1 P 17,800
Purchases 370,000
add: Freight In 7,650
less: Purchase Returns and Allowances (23,200)
less: Purchase Discounts (10,000)
Total Goods Available for Sale P 362,250
less: Merchandise Inventory, Dec 31 (12,850)
Cost of Goods Sold P 349,400
Note 3
Salaries and Wages Expense P 194,000
Insurance Expense 28,450
Utilities Expense 33,200
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Store and Office Supplies Expense 28,580
Doubtful accounts expense 4,520
Depreciation Expense 75,800
Total administrative expenses P 405,250

Note 4
Freight out P 10,700
Total distribution expenses P 10,700

Note 5:
Cash in Bank 198,000
Petty Cash Fund 10,000
Cash 208,000

Note 6:
Interest Expense 6,730
Interest Income 200
Interest Expense, net of interest income 6,530

Note 6:
Accounts Receivable 144,000
less: Allowance for Doubtful Accounts -11,520
Accounts Receivable- Net Realizable Value 132,480

Note 7:
Land 400,000
Buildings 440,000
Less: Accumulated Depreciation-Building (86,400)
Equipment 220,000
Less: Accumulated Depreciation-Equipment (75,000)
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture (66,000)
Property, Plant and Equipment 952,600
 Joseph Landscaping and Plants Store
Statement of Cash Flows
For the year month December 31, 2019
* Movements of cash from Dec 1 - Dec 31, 2019
* using Direct Method

Cash flows from operating activities

Inflow:
Receipts from rendering services/ selling merchandise 149,000 149,000

Outflow:
Payments for purchases of merchandise 41,000
Payments for purchases of supplies 5,000 46,000

Net cash from operating activities 103,000

Cash flows from investing activities 0

Cash flows from financing activities 0

Net increase in Cash 103,000

Cash, Nov 30 105,000
Cash in Bank, December 31 208,000 -
 Joseph Landscaping And Plant Store
Post-Closing Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 198,000
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 144,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Merchandise Inventory 12,850
Office Supplies on Hand 11,420
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 86,400
Equipment 220,000
Accumulated Depreciation-Equipment 75,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 66,000
Accounts Payable 32,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 1,180,340
Interest Receivable 200
Utilities Payable 7,200
Interest Payable 330
Total P 1,676,470 P 1,676,470
 DATE PARTICULARS P/R DEBIT CREDIT
Recall that Merchandise Inventory, December 31 was recorded as part of the adjusting entry shown as follows:
Dec. 31 Merchandise Inventory, End 12850
Income Summary 12850

Income Summary 17,800

Merchandise Inventory, Beg 17,800

To record adjustment for ending balance of inventory.

The following closing entries used the INDIRECT METHOD.

Dec. 31 Service Income 220,000

Sales 916,850
Purchases Discounts 10,000
Purchases Returns and Allowances 23,200
Interest Income 200
Income Summary 1,170,250
Close all nominal accounts with CREDIT balances.

Dec. 31 Income Summary 829,830

Sales Discounts 15,000
Sales Returns and Allowances 14,500
Purchases 370,000
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 33,200
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,730
Store and Office Supplies Expense 28,580
 Doubtful accounts expense 4,520
Depreciation Expense 75,800
Close all nominal accounts with DEBIT balances.

Dec. 31
Joseph de Jesus, Capital 18,000
Joseph de Jesus, Drawing 18000
Close Drawing account to Capital account.

Dec. 31 Income Summary 335,470

Joseph de Jesus, Capital 335,470
 DATE PARTICULARS P/R DEBIT CREDIT
January 1, 2020

(a) Interest Receivable 200

Interest Income 200

(b) Utilities Expense 7200

Utilities Payable 7,200

(c) Interest Expense 330

Interest Payable 330