MPA TRADING

Adjustments
Worksheet

Income

Statement
Balance Sheet
Prepared by Contestant #5

General Journal
Date
2011
December

Description

Page 1
P/R

Debit

Credit

31
a

Bad Debts Expense

Allowance for Bad Debts
To record estimated bad debts of the year.
Accrued Interest Receivable
Interest Income
To record earned interest receivable on note.

400.00
400.00

33.89
33.89

Depreciation Expense - Store Equipment

Accum. Depreciation - Store Equipment
To record depreciation of the year.

8,333.33

Interest Expense - Notes

Accrued Interest Payable
To record unpaid interest payable on note.

1,275.00

Interest Expense - Mortgage

Accrued Interest Payable - Mortgage
To record unpaid interest payable on mortgage.

2,000.00

Salaries Expense
Accrued Salaries Payable
To record unpaid salaries payable.

1,500.00

Prepaid Rent
Rent Expense
To take up for the prepaid rent.

1,250.00

Prepaid Insurance
Insurance Expense
To record unexpired premium insurance.

8,333.33

1,275.00

2,000.00

1,500.00

1,250.00

500.00
500.00

Prepaid Interest Expense

Interest Expense
To record the unexpired portion of prepaid interest expense.

300.00

Interest Income
Unearned Interest Income
To record interest income.

200.00

Merchandise Inventory, End

Income and Expense Summary
To record year end inventory.
Office Supplies Expense
Office Supplies
To record unused office supplies.
Cash
Sales
Output - tax VAT
To record sales of a VAT-registered entity.
Commission Income
Unearned Commission Income
To record the unearned commssion income.

300.00

200.00

75,000.00
75,000.00

6,000.00
6,000.00

408,800.00
365,000.00
43,800.00

5,000.00
5,000.00

Account Title
Cash
Accounts Receivable
Allowance for Bad Debts
Notes Receivable
Inventory, January 1
Office Supplies
Prepaid Rent
Furniture and Equipment
Accum Depreciation
Land
Accounts Payable
Notes Payable-bank debt in 2 yrs
Mortgage Payable-due in 5 yrs
MPA Capital
Sales
Sales Returns and Allowance
Purchases
Freight in
Salaries
Rent Expense
Insurance
Other Operating Expenses
Interest Expense
Commission Income
Interest Income

Trial Balance
Debit
Credit
20,000.00
40,000.00
400.00
20,000.00
20,000.00
10,000.00
15,000.00
25,000.00
10,000.00
115,000.00
70,000.00
30,000.00
50,000.00
100,000.00
365,000.00
15,000.00
280,000.00
6,500.00
35,000.00
25,000.00
5,000.00
25,000.00
1,500.00
10,000.00
22,600.00
658,000.00

Bad Debts Expense

Accrued Interest Receivable
Depreciation Expense - Store Equipment
Accrued Interest Payable
Interest Expense - Notes
Accrued Interest Payable - Mortgage
Prepaid Insurance
Accrued Salaries Payable
Prepaid Interest Expense
Unearned Interest Income
Merchandise Inventory, End
Income and Expense Summary
Office Supplies Expense
Output - tax VAT
Unearned Commission Income

MPA TRADING
Worksheet
For the Month Ended December 31, 2011
Adjusting Entry
Adjusted Trial Balance
Debit
Credit
Debit
Credit
408,800.00 m
428,800.00
40,000.00
400.00 a
800.00
20,000.00
20,000.00
6,000.00 l
4,000.00
1,250.00 g
16,250.00
25,000.00
8,333.33 c
18,333.33
115,000.00
70,000.00
30,000.00
50,000.00
100,000.00
365,000.00 m
730,000.00
15,000.00
280,000.00
6,500.00
1,500.00 f
36,500.00
1,250.00 g
23,750.00
500.00 h
4,500.00
25,000.00
1,275.00 d
300.00 i
2,475.00
5,000.00 n
5,000.00
200.00 j
33.89 b
22,433.89

Balance Sheet
Debit
Credit
428,800.00
40,000.00
800.00
20,000.00

20,000.00
4,000.00
16,250.00
25,000.00
18,333.33
115,000.00
70,000.00
30,000.00
50,000.00
100,000.00
730,000.00
15,000.00
280,000.00
6,500.00
36,500.00
23,750.00
4,500.00
25,000.00
2,475.00
5,000.00
22,433.89

658,000.00

400.00 a
33.89 b
8,333.33 c

400.00
33.89
8,333.33
1,275.00 d

2,000.00 e

400.00
33.89
8,333.33
1,275.00

2,000.00
2,000.00 e

500.00 h

1,275.00
2,000.00

2,000.00

2,000.00

500.00
1,500.00 f

300.00 i

500.00
1,500.00

1,500.00

300.00
200.00 j

75,000.00 k

300.00
200.00

200.00

75,000.00
75,000.00 k

6,000.00 l

75,000.00
75,000.00

6,000.00
43,800.00 m
5,000.00 n

510,592.22
Net Income

Income Statement
Debit
Credit

510,592.22

75,000.00
6,000.00

43,800.00
5,000.00
1,155,342.22

1,155,342.22

43,800.00
5,000.00
430,458.33

832,433.89

724,883.89

832,433.89

724,883.89

401,975.56
832,433.89

322,908.33
401,975.56
724,883.89

MPA Trading
Income Statement
For the Month Ended December 31, 2011
Sales
Less Sales Returns and Allowance

730,000.00
15,000.00

Net Sales
Less: Operating Income
Inventory, January 1
Add: Net Purchases:
Purchases
Freight in

715,000.00
20,000.00
280,000.00
6,500.00

Gross Purchases

286,500.00

Total Available Merchandise for Sales

Less: Merchandise Inventory, End

306,500.00
75,000.00

Cost of Sales

231,500.00

Gross Profit on Sales

483,500.00

Less: Operating Expenses:

Salaries
Rent Expense
Insurance
Other Operating Expenses
Interest Expense
Bad Debts Expense
Depreciation Expense - Store Equipment
Interest Expense - Notes
Office Supplies Expense
Total Operating Expenses
Net Income before other items
Add: Other Income
Commission Income
Interest Income
NET INCOME FOR THE PERIOD

36,500.00
23,750.00
4,500.00
25,000.00
2,475.00
400.00
8,333.33
2,000.00
6,000.00
108,958.33
374,541.67

5,000.00
22,433.89
401,975.56

MPA Trading
Balance Sheet
For the Month Ended December 31, 2011
ASSETS
Cash
Accounts Receivable
Less: Allowance for Bad Debts
Notes Receivable
Merchandise Inventory, End
Office Supplies
Prepaid Rent
Furniture and Equipment
Less: Accum Depreciation
Land
Accrued Interest Receivable
Prepaid Insurance
Prepaid Interest Expense

428,800.00
40,000.00
800.00

20,000.00
75,000.00
4,000.00
16,250.00
25,000.00
18,333.33

TOTAL ASSETS

70,000.00
30,000.00
50,000.00
1,275.00
2,000.00
1,500.00
200.00
43,800.00
5,000.00

TOTAL LIABILITIES

Capital, December 31
TOTAL LIBILITIES AND CAPITAL

6,666.67
115,000.00
33.89
500.00
300.00
705,750.56

LIABILITIES
Accounts Payable
Notes Payable-bank debt in 2 yrs
Mortgage Payable-due in 5 yrs
Accrued Interest Payable
Accrued Interest Payable - Mortgage
Accrued Salaries Payable
Unearned Interest Income
Output - tax VAT
Unearned Commission Income

CAPITAL
MPA Capital
Add: Net Income

39,200.00

203,775.00

100,000.00
401,975.56
501,975.56
705,750.56