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 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

Assume the value of:

Merchandise Inventory, November 30 14,500
EXERCISE 1-1

Dec. 1 Notes Receivable 20,000

Sales 20,000

2 Purchases 25,000
Cash 10,000
Accounts Payable-Stephen Trading 15,000

2 Freight in 800
Cash 800

3 Cash 15,000
Accounts Receivable-Guadalupe's Garden 15,000
Service Income 30,000

4 Cash 20,000
Accounts Receivable-Emmanuel Merchandising 50,000
Sales 70,000

4 Freight out 1,200

Cash 1,200

5 Accounts Payable-Stephen Trading 500

Purchase Returns and Allowances 500

6 Purchases 20,000
Joseph de Jesus, Capital 20,000

7 Sales Returns and Allowances 1,000

Accounts Receivable-Emmanuel Merchandising 1,000

8 Cash 50,000
Sales 50,000

9 Accounts Payable-Stephen Trading 5,000

 Cash 5,000

10 Store Supplies 5,000

Office Supplies 10,000
Cash 5,000
Accounts Payable-Gabriel Supermart 10,000

12 Accounts Payable-Stephen Trading 9,500

Purchase Discount 290
Cash 9,210

15 Joseph de Jesus, Drawing 8,000

Purchases 8,000

17 Accounts Payable-Gabriel Supermart 500

Store Supplies 500

19 Cash 48,510
Sales Discount 490
Accounts Receivable-Emmanuel Merchandising 49,000

20 Accounts Payable-Gabriel Supermart 9,500 14,500

Office Supplies 131 58.96551724
Store Supplies 59 131.0344828
Cash 9,310

26 Sales Returns and Allowances 1,000

Cash 1,000

28 Accounts Receivable-Shalom House of Prayer 50,000

Service Income 50,000

31 Cash 15,000
Accounts Receivable-Guadalupe's Garden 15,000
EXERCISE 1-2

Cash in Bank Acct. No.

101

Date Item P/R Debit Credit Balance

Nov. 30 Balance Ö 95,000 95,000
Dec. 2 GJ8 10,000 85,000
2 GJ8 800 84,200
3 GJ8 15,000 99,200
4 GJ8 20,000 119,200
4 GJ8 1,200 118,000
8 GJ8 50,000 168,000
9 GJ8 5,000 163,000
10 GJ8 5,000 158,000
12 GJ8 9,210 148,790
19 GJ8 48,510 197,300
20 GJ8 9,310 187,990
26 GJ8 1,000 186,990
31 GJ8 15,000 201,990

Petty Cash Fund Acct. No.

102

Date Item P/R Debit Credit Balance

Nov. 30 Balance Ö 10,000 10,000
 Financial Assets at Fair Value through Profit or Loss
Acct. No. 103
Date Item P/R Debit Credit Balance
Nov. 30 Balance Ö 100,000 100,000

Accounts Receivable Acct. No.

104

Date Item P/R Debit Credit Balance

Nov. 30 Balance Ö 95,000 95,000
Dec. 3 GJ12 15,000 110,000
4 GJ12 50,000 160,000
7 GJ12 1,000 159,000
19 GJ12 49,000 110,000
28 GJ12 50,000 160,000
31 GJ12 15,000 145,000

Allowance for Doubtful Accounts Acct. No.

104-A
Date Item P/R Debit Credit Balance
Nov. 30 Balance Ö 7000 7,000
 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 Lo 100,000
Accounts Receivable 95,000
Allowance for Doubtful Accounts P 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 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
 Joseph Landscaping And Plant Store
Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Investments in Trading Securities 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 7,000
Notes Receivable 20,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 20,369
Store Supplies on Hand 19,441
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 37,000
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 15,490
Sales Returns and Allowances 14,500
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
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 2,438,490 2,438,490
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 Credit
Cash in Bank 201,990 201,990
Petty Cash Fund 10,000 10,000
Investments in Trading Securities 100,000 100,000
Accounts Receivable 145,000 145,000
Allowance for Doubtful Accounts 7,000 4,600 11,600
Notes Receivable 20,000 20,000
Interest Receivable 200 200
Merchandise Inventory, January 1 17,800 17,800 17,800 12,850
Office Supplies on Hand 20,369 14,080 6,289
Store Supplies on Hand 19,441 14,500 4,941
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 37,000 37,000
Notes Payable 12,000 12,000
Withholding Taxes Payable 5,600 5,600
Utilities Payable 7,200 7,200
Interest Payable 330 330
Mortgage Payable 200,000 200,000
Joseph de Jesus, Capital 862,950 862,950
Joseph de Jesus, Drawing 18,000 18,000
Service Income 220,000 220,000 220,000
Sales 916,850 916,850 916,850
Sales Discounts 15,490 15,490 15,490
Sales Returns and Allowances 14,500 14,500 14,500
Interest Income 200 200 200
Purchases 362,000 362,000 362,000
Purchases Discounts 10,290 10,290 10,290
Purchases Returns and Allowances 15,200 15,200 15,200
Freight in 7,650 7,650 7,650
Freight out 10,700 10,700 10,700
Salaries and Wages Expense 194,000 194,000 194,000
Depreciation Expense 75,800 75,800 75,800
Utilities Expense 26,000 7,200 33,200 33,200
Insurance Expense 28,450 28,450 28,450
Office Supplies Expense 14,080 14,080 14,080
Store Supplies Expense 14,500 14,500 14,500
Repairs and Maintenance Expens 16,750 16,750 16,750
SSS, Philhealth,and Pag-ibig Exp 11,550 11,550 11,550
Doubtful Accounts Expense 4,600 4,600 4,600
Miscellaneous Expense 12,400 12,400 12,400
Interest Expense 6,400 330 6,730 6,730
Total 2,438,490 2,438,490 116,710 116,710 2,526,620 2,526,620 840,200 1,175,390
Net Income 335,190
1,175,390 1,175,390
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2019
Statement of Account Title Debit Credit
Financial Position Cash in Bank
Debit Credit Petty Cash Fund 10,000
201,990 Financial Assets at Fair Value through Profit 100,000
10,000 Accounts Receivable 145,000
100,000 Allowance for Doubtful Accounts
145,000 Notes Receivable 20,000
11,600 Interest Receivable
20,000 Merchandise Inventory, January 1 17,800
200 Office Supplies on Hand
12,850 Store Supplies on Hand
6,289 Land 400,000
4,941 Buildings 440,000
400,000 Accumulated Depreciation-Building
440,000 Equipment 220,000
86,400 Accumulated Depreciation-Equipment
220,000 Furniture and Fixture 120,000
75,000 Accumulated Depreciation – Furniture
120,000 Accounts Payable 37,000
66,000 Notes Payable 12,000
37,000 Withholding Taxes Payable 5,600
12,000 Utilities Payable
5,600 Interest Payable
7,200 Mortgage Payable 200,000
330 Joseph de Jesus, Capital 862,950
200,000 Joseph de Jesus, Drawing 18,000
862,950 Service Income 220,000
 18,000 Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Interest Income
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Depreciation Expense
Utilities Expense
Insurance Expense 28,450
Store and Office Supplies Expense
Repairs and Maintenance Expense 16,750
SSS, Philhealth,and Pag-ibig Expense 11,550
Doubtful Accounts Expense
Miscellaneous Expense 12,400
Interest Expense
Total

1,699,270 1,364,080
335,190
1,699,270 1,699,270
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2019

Account Title Debit Credit

Cash in Bank 201,990
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
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 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
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 15,490
Sales Returns and Allowances 14,500
Interest Income 200
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Store Supplies Expense 14,500
Repairs and Maintenance Expense 16,750
SSS, Philhealth,and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellaneous Expense 12,400
Interest Expense 6,730
Total 2,526,620 2,526,620
(a) Interest Receivable 200
Interest Income 200

(b) Utilities Expense 7,200

Utilities Payable 7,200

(c) Interest Expense 330

Interest Payable 330

(d) Office Supplies Expense 14,080 28580 Accrued Income

Store Supplies Expense 14,500 a) Interest of P200 on promissory note received from Argem Day Care C
Office Supplies Expense 14,080
Store Supplies on Hand 14,500 Accrued Expense
b) Utility bills for the month of December has not been paid by the stor
(e) Doubtful Accounts Expense 4,600 c) Interest of P330 on the P12,000, 10%, 120-day promissory note issue
Allowance for Doubtful Accounts 4,600
4600 Prepaid Expense
(f) Depreciation Expense 28,800 d) Store and office supplies consumed during the year amounted to P28
Accumulated Depreciaition - Building 28,800
28800 Doubtful Accounts
e) The store management approved the increase of the allowance for d
Depreciation Expense 25,000
Accumulated Depreciaition - Equipment 25,000 Depreciation
25000
The store uses the straight line method in recognizing depreciation for all i
Depreciation Expense 22,000
Estimate
Date of
Description d Useful.
Accumulated Depreciaition - Furniture 22,000 Purchase Cost
Life
22000 f) Building 2 years ago 15 years P 440,000
COMPOUND entry g) Equipment 2 years ago 8 years P 220,000
(f) Depreciation Expense 75,800 h) Furniture 2 years ago 5 years P 120,000
Accumulated Depreciaition - Building 28,800
 Accumulated Depreciaition - Equipment 25,000 Merchandise Inventory, end
Accumulated Depreciaition - Furniture 22,000
i) A physical count was conducted at the end of the year, December 31
(i) Merchandise Inventory 12,850
Income Summary 12,850
d from Argem Day Care Center has accrued at the end of the period.

not been paid by the store amounting to P7,200.

ay promissory note issued by Joseph Landscaping and Plant Store to Pio Plants and Ornaments Store on September 23, 2018 has accrued at the end of the period

he year amounted to P28,580.

se of the allowance for doubtful accounts to 8% of accounts receivable.

zing depreciation for all its fixed asset accounts. Depreciation expense for the current year has not been recorded yet. Details of the depreciable assets are given be

Salvage
Value
P 8,000
P 20,000
P 10,000
of the year, December 31, 2018. Joseph Landscaping and Plant Store still had P12,850 worth of unsold merchandise.
d at the end of the period

reciable assets are given below.

 Joseph Landscaping and Plant Store
Statement of Financial Position
December 31, 2019
ASSETS
Current Assets Note

Cash and Cash Equivalents 5 211,990

Trade and Other Receivables 6 153,600
Merchandise Inventory 12,850
Prepaid Expenses 7 11,230
Investment in Trading Securities 100,000
Total Current Assets 489,670
Non-Current Assets
Property, Plant & Equipment 8 952,600
Total Assets 1,442,270

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and Other Payables 9 62,130
Non-Current Liabilities
Mortgage Payable 200,000
Total Liabilities 262,130

Owner's Equity
Joseph de Jesus, Capital 1,180,140
Total Liabilities and Owner's Equity 1,442,270
 Notes to the Financial Statement
Note 5: Cash and Cash Equivalents
Cash in Bank 201990
Petty Cash Fund 10000
211990

Note 6: Trade and Other Receivables

Accounts Receivable 145,000
Less: Allowance for Doubtful Accounts 11,600 133,400
Notes Receivable 20,000
Interest Receivable 200
153,600

Note 7: Prepaid Expenses

Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
11,230

Note 8: Property, Plant & Eqipment

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
Less: Accumulated Depreciation – Furniture 66,000
1,180,000 227,400
 952,600
Note 9:
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
62,130
Note 1
Sales P 916,850
Less: Sales Discount P 15,490
Less: Sales Returns and Allowances 14,500 Joseph Landscaping and
Service Income 220,000 Income Stateme
Net sales revenue and Service Income P 1,106,860 For the year ended Decem

Note 2
Merchandise Inventory, January 1 17800
Net Cost of Purchases Net sales revenue
Purchases 362,000 Cost of sales
Purchase discounts 10,290 Gross profit
Purchase returns and allowances 15,200 25,490 Interest Income
Net Purchases 336,510 Gross profit and other income
Freight In 7,650 Operating expenses:
Cost of Goods For Sale P 361,960 Administrative expenses
Merchandise Inventory, End 12,850 Distribution expenses
Cost of sales P 349,110 Interest Expense
Miscellaneous Expenses
Note 3 Net Income
Utilities Expense 33,200
Salaries and Wages Expense 194,000
Depreciation Expense 75,800 Joseph Landscaping and
Doubtful Accounts Expense 4,600 Statement of Changes in O
Office Supplies Expense 14,080 For the year ended Decem
Store Supplies Expense 14,500
Insurance Expense 28,450 Joseph de Jesus, Capital
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-Ibig Expense 11,550 Joseph de Jesus, Drawings
Total administrative expenses P 392,930 Net Profit
Joseph de Jesus, Capital
Note 4
Freight Out P 10,700
oseph Landscaping and Plant Store
Income Statement
r the year ended December 31, 2019

Note
(1) P 1,106,860
(2) 349,110
P 757,750
200
P 757,950

(3) P 392,930
(4) 10,700
6,730
P 12,400
P 335,190

oseph Landscaping and Plant Store

tement of Changes in Owner's Equity
r the year ended December 31, 2019

P 862,950

P 18,000
 335,190
P 1,180,140
 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, December 31 107 12,850
Income Summary 12,850
To record adjustment for ending balance of inventory.

The following closing entries used the INDIRECT METHOD.

Dec. 31 Service Income 501 220000

Sales 502 916850
Sales Discounts 502-A (15490)
Sales Returns and Allowances 502-B (14500)
Interest Income 503 200
Income Summary 1107060
Close all nominal accounts with CREDIT balances.

Dec. 31 Expense Summary 766,920

Purchases 601 362000
Purchases Discounts 601-A (10290)
Purchases Returns and Allowances 601-B (15200)
Freight In 602 7,650
Freight Out 610 10,700
Salaries and Wages Expense 611 194,000
Depreciation Expense 612 75,800
Utilities Expense 613 33,200
Insurance Expense 614 28,450
Office Supplies Expense 615 14,080
Store Supplies Expense 615 14,500
Repairs and Maintenance Expense 616 16,750
SSS, Philhealth,and Pag-ibig Expense 617 11,550
Doubtful Accounts Expense 618 4,600
Miscellaneous Expense 619 12,400
Interest Expense 630 6,730
Close all nominal accounts with DEBIT balances.
Dec. 31 Joseph de Jesus, Capital 401 18,000
Joseph de Jesus, Drawing 401-A 18,000
Close Drawing account to Capital account.
 Joseph Landscaping and Plants Store
Statement of Cash Flows
For the year ended December 31, 2019
Cash flows from operating activities
Inflow
Cash sales 518,895
Cash from landscaping services 170,000
Collections on accounts receivable 172,965 861,860
Outflow
Payment of account purchases 336,510
Payment of various operating expenses 336,080
Payment of interest 6,400 678,990
Net cash from operating activities 182,870

Cash flows from financing activities

Partial payment of bank loan (part of mortgage payable) 100,000
Net cash from financing activities 100,000

Net increase in Cash in Bank 82,870

Cash in Bank, January 1 119,120
Cash in Bank, December 31 201,990
 Joseph Landscaping And Plant Store
Post-Closing Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory, January 1 12,850
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
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 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Mortgage Payable 200,000
Joseph de Jesus, Capital 1,180,140
Total 1,681,270 1,681,270
 DATE PARTICULARS P/R DEBIT CREDIT
January 1, 2020
(a) Interest Income 503 200
Interest Receivable 106 200

(b) Utilities Payable 304 7,200

Utilities Expense 613 7,200

(c) Interest Payable 305 330

Interest Expense 630 330