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Merchandising - Completing The Cycle 1 - Christine Santos Bags

The document provides the ledger accounts for Christine Santos Bags for the year ended December 31, 2020. It includes asset, liability, equity, revenue and expense accounts. Additional information provides details on supplies consumed, expired advertising, accrued salaries, and year-end inventory balance. The required tasks are to prepare a 12 column adjusted trial balance worksheet, closing entries, income statement, balance sheet, and reversing entries in an excel file with solutions presented similarly to the illustrative problem.

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Jowelyn Casignia
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3K views12 pages

Merchandising - Completing The Cycle 1 - Christine Santos Bags

The document provides the ledger accounts for Christine Santos Bags for the year ended December 31, 2020. It includes asset, liability, equity, revenue and expense accounts. Additional information provides details on supplies consumed, expired advertising, accrued salaries, and year-end inventory balance. The required tasks are to prepare a 12 column adjusted trial balance worksheet, closing entries, income statement, balance sheet, and reversing entries in an excel file with solutions presented similarly to the illustrative problem.

Uploaded by

Jowelyn Casignia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 12

The ledger accounts of the Christine Santos Bags for the year ended December 31, 2020

are as follows:

Accumulated depreciation - Office Building 100,000.00


Accumulated depreciation - Office Equipment 150,000.00
Accounts receivable 136,000.00
Accounts payable 74,000.00
Cash 72,000.00
Freight-in 72,000.00
Insurance expense 25,000.00
Interest expense 208,000.00
Santos Capital 1,510,000.00
Santos Withdrawal 200,000.00
Land 400,000.00
Merchandise inventory ( Jan 1) 598,000.00
Mortgage payable 1,100,000.00
Notes payable, due in 2 yrs 200,000.00
Office Building 1,600,000.00
Office Equipment 570,000.00
Office Supplies 42,000.00
Prepaid advertising 75,000.00
Purchases 2,643,000.00
Purchase discounts 172,000.00
Purchase returns and allowances 133,000.00
Salaries expense 862,000.00
Sales discounts 161,000.00
Sales returns and allowances 187,000.00
Sales 4,600,000.00
Travel expense 188,000.00

Additional information:
a Office supplies consumed during the year, P17,000
b Expired prepaid advertising expense, P25,000
c Accured salaries, P21,000
d Depreciation on building and equipment amounted to P15,000 and P20,000 respectively
e December 31 balance of ending inventory, P723,000

Required
1 12 column worksheet plus post-closing trial balance
2 Closing entries
3 Income Statement
4 Balance Sheet
5 Reversing entries
Instructions:
Present solutions in excel file, similar to the illustrative problem that we discussed.
Unadjusted
Trial Balance Adjustments
Particulars Debit Credit Debit
Cash ₱ 72,000.00
Accounts Receivable 136,000.00
Office Supplies 42,000.00
Prepaid advertising 75,000.00
Merchandise Inventory 598,000.00
Office Equipment 570,000.00
Office Building 1,600,000.00
Land 400,000.00
Accumulated depreciation - Office Building ₱ 100,000.00
Accumulated depreciation - Office Equipment 150,000.00
Accounts payable 74,000.00
Notes payable 200,000.00
Mortgage payable 1,100,000.00
Santos Capital 1,510,000.00
Santos Withdrawal 200,000.00
Sales 4,600,000.00
Sales discounts 161,000.00
Sales returns and allowances 187,000.00
Purchases 2,643,000.00
Purchase Discounts 172,000.00
Purchase Returns and Allowances 133,000.00
Freight-in 72,000.00
Interest expense 208,000.00
Salaries expense 862,000.00 c ₱ 21,000.00
Insurance expense 25,000.00
Travel expense 188,000.00
Totals ₱ 8,039,000.00 ₱ 8,039,000.00
a.) Supplies Expense a 17,000.00
b.) Advertising Expense b 25,000.00
c.) Salaries Payable c
d.) Depreciation Expense d 35,000.00
Totals ₱ 98,000.00
Cost of Sales
Totals
Net Profit/Loss
Grand Totals
Christine Santos Bags
Worksheet
December 31,2020
Adjusted Cost of
Adjustments Trial Balance Sales
Credit Debit Credit Debit Credit
₱ 72,000.00
136,000.00
₱ 17,000.00 a 25,000.00
25,000.00 b 50,000.00
598,000.00 ₱ 598,000.00 ₱ 723,000.00
570,000.00
1,600,000.00
400,000.00
15,000.00 d ₱ 115,000.00
20,000.00 d 170,000.00
74,000.00
200,000.00
1,100,000.00
1,510,000.00
200,000.00
4,600,000.00
161,000.00
187,000.00
2,643,000.00 2,643,000.00
172,000.00 172,000.00
133,000.00 133,000.00
72,000.00 72,000.00
208,000.00
883,000.00
25,000.00
188,000.00

17,000.00
25,000.00
21,000.00 c 21,000.00
35,000.00
₱ 98,000.00 ₱ 8,095,000.00 ₱ 8,095,000.00 3,313,000.00 1,028,000.00
2,285,000.00
₱ 3,313,000.00 ₱ 3,313,000.00

Closing Entries:
c1 Sales 4,600,000.00
Merchandise Inventory 723,000.00
Purchase Discount 172,000.00
Purchase Returns and Allowances 133,000.00
Income Summarry 5,628,000.00

c2 Income Summary 5,042,000.00


Sales Discounts 161,000.00
Sales Returns and Allowances 187,000.00
Purchases 2,643,000.00
Freight-in 72,000.00
Interest expense 208,000.00
Salaries expense 883,000.00
Insurance expense 25,000.00
Travel expense 188,000.00
Supplies Expense 17,000.00
Advertising Expense 25,000.00
Depreciation Expense 35,000.00
Merchandise Inventory 598,000.00

c3 Santos, Capital 200,000.00


Santos, Drawings 200,000.00

c4 Income Summary 586,000.00


Santos, Capital 586,000.00

Reversing Entries
January
2021
1 Salaries Payable 21,000.00
Salaries Expense 21,000.00
Income Post-Closing
Statement Balance Sheet Trial Balance
Debit Credit Debit Credit Debit
₱ 72,000.00 ₱ 72,000.00
136,000.00 136,000.00
25,000.00 25,000.00
50,000.00 50,000.00
723,000.00 723,000.00
570,000.00 570,000.00
1,600,000.00 1,600,000.00
400,000.00 400,000.00
₱ 115,000.00
170,000.00
74,000.00
200,000.00
1,100,000.00
1,510,000.00
200,000.00
₱ 4,600,000.00
₱ 161,000.00
187,000.00

208,000.00
883,000.00
25,000.00
188,000.00

17,000.00
25,000.00
21,000.00
35,000.00

2,285,000.00
4,014,000.00 4,600,000.00 3,776,000.00 3,190,000.00
586,000.00 586,000.00
₱ 4,600,000.00 ₱ 4,600,000.00 ₱ 3,776,000.00 ₱ 3,776,000.00 ₱ 3,576,000.00
Income Summary
c2 5,042,000.00 5,628,000.00 c1
c4 586,000.00
5,628,000.00 5,628,000.00

Santos, Capital
c3 200,000.00 1,510,000.00 bb
586,000.00 c4
200,000.00 2,096,000.00
1,896,000.00 be
Post-Closing Christine Santos Bags
Trial Balance Income Statement
Credit For the year ended December 31, 2020

Sales
Less: Sales Discount
Sales Returns and Allowances
Net Sales
Less: Cost of Goods Sold
Merchandise Inventory Beginning Balance
Add: Purchases
₱ 115,000.00 Freight-in
170,000.00 Gross Purchases
74,000.00 Less: Purchase Discount ₱ 172,000.00
200,000.00 Purchases Returns and Allowances 133,000.00
1,100,000.00 Total Goods Available for Sale
1,896,000.00 Less: Merchandise Inventory Ending Balance
Gross Profit
Less: Operating Expenses
Interest expense
Salaries expense
Insurance expense
Travel expense
Supplies Expense
Advertising Expense
Depreciation Expense
Net Income

21,000.00

₱ 3,576,000.00
Santos Bags Christine Santos Bag
Statement Balance Sheet
d December 31, 2020 As of December 31, 2

₱ 4,600,000.00 ASSETS
₱ 161,000.00 Current Assets
187,000.00 348,000.00 Cash
4,252,000.00 Accounts Receivable
Office Supplies
598,000.00 Prepaid advertising
₱ 2,643,000.00 Merchandise Inventory
72,000.00 Total Current Assets
2,715,000.00 Non-Current Assets
Office Equipment
305,000.00 2,410,000.00 Office Building
3,008,000.00 Land
723,000.00 2,285,000.00 Total Non-Current Assets
1,967,000.00 Less:

208,000.00 Total Assets


883,000.00
25,000.00 LIABILITIES & OWNER'S E
188,000.00 Current Liabilities
17,000.00 Accounts payable
25,000.00 Notes payable
35,000.00 1,381,000.00 Salaries Payable
₱ 586,000.00 Non-Current Liabilities
Mortgage Payable
Total Liabilities

Owner's Equity
Santos, Capital
Total Liabilities & Owner's Equity
Christine Santos Bags
Balance Sheet
As of December 31, 2020

Current Assets
₱ 72,000.00
Accounts Receivable 136,000.00
Office Supplies 25,000.00
Prepaid advertising 50,000.00
Merchandise Inventory 723,000.00
otal Current Assets 1,006,000.00
Non-Current Assets
Office Equipment ₱ 570,000.00
Office Building 1,600,000.00
400,000.00
otal Non-Current Assets 2,570,000.00
Accumulated depreciation - Office Building ₱ 115,000.00
Accumulated depreciation - Office Equipment 170,000.00 285,000.00 2,285,000.00
₱ 3,291,000.00

LIABILITIES & OWNER'S EQUITY


Current Liabilities
Accounts payable 74,000.00
Notes payable 200,000.00
Salaries Payable 21,000.00 295,000.00
Non-Current Liabilities
Mortgage Payable 1,100,000.00
otal Liabilities 1,395,000.00

Owner's Equity
Santos, Capital 1,896,000.00
otal Liabilities & Owner's Equity ₱ 3,291,000.00
Debit Credit
CE1 Sales 4,600,000.00
Merchandise Inventory 723,000.00
Purchase Discount 172,000.00
Purchase Returns and Allowances 133,000.00
Income Summary 5,628,000.00

CE2 Income Summary 5,042,000.00 CE3


Merchandise Inventory 598,000.00
Purchases 2,643,000.00
Freight-in 72,000.00
Sales discounts 161,000.00
Sales returns and allowances 187,000.00
Interest expense 208,000.00
Salaries expense 883,000.00
Insurance expense 25,000.00
Travel expense 188,000.00
Supplies Expense 17,000.00
Advertising Expense 25,000.00
Depreciation Expense 35,000.00

CE3 Santos Capital 200,000.00


Santos Withdrawal 200,000.00

CE4 Income Summary 586,000.00


Santos Capital 586,000.00
Income Summary
5,042,000.00 5,628,000.00
586,000.00

Santos Capital
200,000.00 1,510,000.00 bb
586,000.00 CE4
1,896,000.00

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