200X

March 1 Merchandise inventory 581,800.00

Accounts payable 581,800.00
Purchase on account; 2/20;n/30;FOB
shipping point, freight prepaid

2 Accounts Receivable 605,000.00

Sales 585,000.00
Cash 20,000.00
Sold on account; 10,5/15,n/30; FOB
shipping point, freight prepaid

Cost of goods sold 351,000.00

Mechandise inventory 351,000.00
Sold on account

15 Salary Expense 150,000.00

Cash 150,000.00
Paid 15th month salary

16 Cash 575,750.00
Sales Discount 29,250.00
Accounts Receivable 605,000.00
Collected sales on March 2

20 Accounts Payable 581,800.00

Cash 570,200.00
Mechandise inventory 11,600.00
Paid purchases made on March 1

22 Cash 400,000.00
Sales 400,000.00
Sold goods for cash

Cost of goods sold 240,000.00

Merchandise inventory 240,000.00
Sold goods for cash

23 Sales return 20,000.00

Accounts Receivable 20,000.00
Received sales return

Merchandise inventory 12,000.00

Cost of goods sold 12,000.00
 Received sales return

26 Accounts Receivable 470,000.00

Freight-out 30,000.00
Sales 500,000.00
Sold goods on account

Cost of goods sold 300,000.00

Merchandise inventory 300,000.00
Sold goods on account

31 Merchandise inventory 100,000.00

Accounts payable 100,000.00
Purchase goods on account

31 Bad Debt Expense 30,000.00

Allowance for bad debt expense 30,000.00
Recognize allowance for bad debts

31 Salaries Expense 150,000.00

Accrued Salaries Expense 150,000.00
Recognize unpaid salaries

31 Supplies expense 3,000.00

Prepaid supplies 3,000.00
Recognize used supplies

31 Merchandise inventory 6,000.00

Cost of goods sold 6,000.00
Recognize merchandise overage
390,000.00 351,000.00
39,000.00
Adjusting Entries

this could be included in closing entries. This will produce the same result
 Cash Accounts receivable Merchandise Inventory

100,000.00 20,000.00 400,000.00 605,000.00 250,000.00

150,000.00 605,000.00 20,000.00 581,800.00
575,750.00 570,200.00 470,000.00 12,000.00
400,000.00 100,000.00
6,000.00
1,075,750.00 740,200.00 1,475,000.00 625,000.00 949,800.00
335,550.00 850,000.00 47,200.00

E, Drawings Accounts payables Notes payable

80,000.00 581,800.00 50,000.00

581,800.00
100,000.00

80,000.00 581,800.00 731,800.00

150,000.00

Allowance for bad debts Cost of goods sold

351,000.00 12,000.00
20,000.00 240,000.00 6,000.00
30,000.00 300,000.00

891,000.00 18,000.00
50,000.00 873,000.00

Salaries expense Sales discount

150,000.00 29,250.00
150,000.00

300,000.00 29,250.00

Freight-out Bad debt expense Accrued salaries expense

30,000.00 30,000.00
30,000.00 30,000.00
Merchandise Inventory Prepaid Expenses

351,000.00 5,000.00 3,000.00

11,600.00
240,000.00
300,000.00

902,600.00 2,000.00

Notes payable E, Capital

200,000.00 565,000.00

200,000.00 565,000.00

Sales

585,000.00
400,000.00
500,000.00

1,485,000.00

Sales return

20,000.00

20,000.00

Accrued salaries expense Supplies expense

150,000.00 3,000.00
150,000.00 3,000.00
 E&N Marketing
Pre-closing Trial Balance
As of March 31, 200X

Debit Credit
Cash 335,550.00
Accounts receivable 850,000.00
Allowance for bad debts 50,000.00
Merchandise Inventory 47,200.00
Prepaid Expenses 2,000.00
Accounts payables 150,000.00
Accrued salaries expense 150,000.00
Notes payable 200,000.00
E, Drawings 80,000.00
E, Capital 565,000.00
Sales 1,485,000.00
Sales discount 29,250.00
Sales return 20,000.00
Cost of goods sold 873,000.00
Salaries expense 300,000.00
Freight-out 30,000.00
Bad debt expense 30,000.00
Supplies expense 3,000.00

Total 2,600,000.00 2,600,000.00

 E&N Marketing
Statement of Comprehensive Income
For the period ended March 31, 200X

Sales 1,485,000.00
Sales return (20,000.00)
Sales discount (29,250.00) (49,250.00)
Net sales 1,435,750.00

Less: Cost of goods sold (873,000.00)

Gross profit 562,750.00
Less: Salaries Expense (300,000.00)
Freight-out (30,000.00)
Bad debt expense (30,000.00)
Supplies expense (3,000.00) (363,000.00)
Net income 199,750.00
 E&N Marketing
Statement of Cost of Goods Sold
For the period ended March 31, 200X

Merchandise inventory, beg 250,000.00

Purchases 680,000.00
Freight-in 1,800.00
Less: Purchase discount (11,600.00)

Net purchases 670,200.00

Goods available for sale 920,200.00
Less: Merchandise inventory, end (41,200.00)
Cost of goods sold 879,000.00
Less: Merchandise overage (6,000.00)
Total cost of goods sold 873,000.00

(Cost of goods sold is automatically computed in perpetual inventory

method. This is for presentation purposes only)
 E&N Marketing
Statement of Cost of Goods Sold
As of March 31, 200X

E, Capital. beg 565,000.00

Net income 199,750.00
Total 764,750.00
E, Drawing (80,000.00)
E, Capital. end 684,750.00
 E&N Marketing
Statement of Financial Position
As of March 31, 2017

Assets

Current Assets
Cash 335,550.00
Accounts receivable 850,000.00
Allowance for bad debts (50,000.00) 800,000.00
Merchandise Inventory 47,200.00
Prepaid Expenses 2,000.00
Total Current Assets 1,184,750.00

Liabilities and Owner's Equity

Current Liabilities
Accounts payables 150,000.00
Accrued salaries expense 150,000.00
Notes payable 200,000.00
Total Current Liabilities 500,000.00
Owner's Equity
E, Capital 684,750.00
Total Liabilities and Owner's Equity 1,184,750.00
 E&N Marketing
Statement of Cash Flows
For the period March 31, 200X

Operating Activities

Cash inflow
Collection of accounts receivable 575,750.00
Sales of goods through cash 400,000.00
Total cash inflow 975,750.00

Cash outflow
Payment of transportation 20,000.00
Payment of salaries expense 150,000.00
Payment of accounts payable 570,200.00
Total cash outflow 740,200.00

Cash provided by operating activities 235,550.00

Cash balance beginning 100,000.00
Cash balance ending 335,550.00
 200X

March 1 Purchases 580,000.00

Freight-In 1,800.00
Accounts payable
Purchase on account; 2/20;n/30;FOB
shipping point, freight prepaid

2 Accounts Receivable 605,000.00

Sales
Cash
Sold on account; 10,5/15,n/30; FOB
shipping point, freight prepaid

15 Salary Expense 150,000.00

Cash
Paid 15th month salary

16 Cash 575,750.00
Sales Discount 29,250.00
Accounts Receivable
Collected sales on March 2

20 Accounts Payable 581,800.00

Cash
Purchase discount
Paid purchases made on March 1

22 Cash 400,000.00
Sales
Sold goods for cash

23 Sales return 20,000.00

Accounts Receivable
Received sales return

26 Accounts Receivable 470,000.00

Freight-out 30,000.00
Sales
Sold goods on account

31 Purchases 100,000.00
Accounts payable
Purchase goods on account
31 Bad Debt Expense 30,000.00
Allowance for bad debt expense
Recognize allowance for bad debts

31 Salaries Expense 150,000.00

Accrued Salaries Expense
Recognize unpaid salaries

31 Supplies expense 3,000.00

Prepaid supplies
Recognize used supplies

31 Merchandise inventory 6,000.00

Cost of goods sold
Recognize merchandise overage

31 Sales 1,485,000.00
Cost of goods sold
Sales return
Sales discount
Salaries expense
Freight out
Bad debt expense
Supplies expense
Income summary
To close income, expense, merchandise inventory beginning
and set up merchandise inventory end

31 Income summary 199,750.00

E, Capital

31 E, Capital 80,000.00
E, Drawing
581,800.00

585,000.00
20,000.00

150,000.00

605,000.00

570,200.00
11,600.00

400,000.00

20,000.00

500,000.00

100,000.00
 30,000.00

150,000.00 Adjusting Entries

3,000.00

6,000.00

873,000.00
20,000.00
29,250.00
300,000.00
30,000.00
30,000.00
3,000.00 Closing Entries
199,750.00

199,750.00

80,000.00
 Cash Accounts receivable Merchandise Inventory

100,000.00 20,000.00 400,000.00 605,000.00 250,000.00

150,000.00 605,000.00 20,000.00 581,800.00
575,750.00 570,200.00 470,000.00 12,000.00
400,000.00 100,000.00
6,000.00
1,075,750.00 740,200.00 1,475,000.00 625,000.00 949,800.00
335,550.00 850,000.00 47,200.00

E, Drawings Accounts payables Notes payable

80,000.00 80,000.00 581,800.00 50,000.00

581,800.00
100,000.00

80,000.00 80,000.00 581,800.00 731,800.00

- 150,000.00

Allowance for bad debts Cost of goods sold

351,000.00 12,000.00
20,000.00 240,000.00 6,000.00
30,000.00 300,000.00 873,000.00

891,000.00 891,000.00
50,000.00 -

Salaries expense Sales discount

150,000.00 300,000.00 29,250.00 29,250.00

150,000.00

300,000.00 300,000.00 29,250.00 29,250.00

- -

Freight-out Bad debt expense Accrued salaries expense

30,000.00 30,000.00 30,000.00 30,000.00

 30,000.00 30,000.00 30,000.00 30,000.00
- -

Income summary
199,750.00 199,750.00

-
Merchandise Inventory Prepaid Expenses

351,000.00 5,000.00 3,000.00

11,600.00
240,000.00
300,000.00

902,600.00 2,000.00

Notes payable E, Capital

200,000.00 80,000.00 565,000.00

199,750.00

200,000.00 80,000.00 764,750.00

684,750.00

Sales

1,485,000.00 585,000.00
400,000.00
500,000.00

1,485,000.00 1,485,000.00
-

Sales return

20,000.00 20,000.00

20,000.00 20,000.00
-

Accrued salaries expense Supplies expense

150,000.00 3,000.00 3,000.00

150,000.00 3,000.00 3,000.00
-
 E&N Marketing
Post-closing Trial Balance
As of March 31, 200X

Debit Credit
Cash 335,550.00
Accounts receivable 850,000.00
Allowance for bad debts 50,000.00
Merchandise Inventory 47,200.00
Prepaid Expenses 2,000.00
Accounts payables 150,000.00
Accrued salaries expense 150,000.00
Notes payable 200,000.00
E, Capital 684,750.00

Total 1,234,750.00 1,234,750.00