Accounts Trial Balance Adjustments Profit or Loss Financial Position

Debit Credit Debit Credit Debit Credit Debit Credit

Petty Cash Fund 15,000 7,500 7,500
Cash in Bank 243,600 53,300 296,900
Trading Securities 330,000 20,000 350,000
Accounts Receivable 3,544,000 786,000 2,758,000
Allowance for 120,000 17,900 137,900
Uncollectible Accounts
Advances to Officers and 0 123,000 123,000
Employees
Inventories 4,398,900 4,398,900
Prepaid Insurance 29,400 6,250 23,150
Property Plant and 10,945,00 10,945,000
Equipment at cost 0
Accumulated 703,500 166,800 870,300
Depreciation
Franchises 500,000 500,000
Licensing Agreement 216,000 144,000 360,000
Accounts Payable 2,141,550 62,650 2,204,200
Interest Payable 0 380,000 380,000
Accrued Expenses 598,020 50,800 648,820
Unearned Revenues 0 130,000 130,000
Income Taxes Payable 193,365 127,126 66,239
Dividends Payable 1,250,000 1,250,000
Current Portion of Long- 0 500,000 500,000
Term Debt
Mortgage Payable 2,000,000 500,000 1,500,000
Bonds Payable 2,000,000 2,000,000
Discount on Bonds 122,000 7,800 114,200
Payable
Ordinary Share Capital 5,000,000 5,000,000
Additional Paid-in Capital 1,350,000 1,350,000
Retained Earnings 2,867,840 2,867,840
1/1/2018
Sales 32,250,000 661,000 31,589,000
Cost of Goods Sold 18,169,95 563,650 17,606,300
0
Marketing and 8,900,400 531,750 8,368,650
Administrative Expenses
Other Income 180,000 160,000 20,000
Interest Expense 404,320 387,800 792,120
Income Tax Expense 1,585,705 127,126 1,458,579
Dividends Declared 1,250,000 1,250,000
Balance 50,564,27 50,564,275
5
Inventory 4,976,900 4,976,900
Accumulated 50,000 50,000
Amortization Franchise
Accumulated 216,000 216,000
Amortization Licensing
Agreement
A/P Delon 126,000 126,000
A/P De Leon 126,000 126,000
Land 1,720,000 1,720,000
Building 7,750,000 7,750,000
Land and Building 8,600,000 8,600,000
Unrealized gain on 20,000 20,000
trading securities
Balance 16,749,126 16,749,12 28,225,649 31,629,000
6
Income Before Tax 3,403,351
Total 31,629,000 31,629,000

Income Before Tax 3,403,351

Income Tax Expense 1,021,005.3
0
Income Tax Payable 1,021,005.30
Profit 2,382,345.7 2,382,345.70
0
3,403,351 3,403,351 31,300,650 31,300,650
Computations:

1. Petty Cash Fund:

Initial Balance 15,000

Less: Adjustments (7,500)
Final Balance 7,500
2. Cash in Bank:

Initial Balance 243,600

Add: Accumulated Adjustments 53,300
Final Balance 296,900
3. Trading Securities:

Initial Balance 330,000

Add: Accumulated Adjustments 20,000
Final Balance 350,000
4. Accounts Receivable:

Initial Balance 3,544,000

Less: Accumulated Adjustments (786,000)
Final Balance 2,758,000
5. Allowance for Doubtful Accounts:

Initial Balance 120,000

Add: Accumulated Adjustments 17,900
Final Balance 137,900
6. Advances to Officers and Employees:

Initial Balance 0
Add: Accumulated Adjustments 123,000
Final Balance 123,000
7. Inventories:

Initial Balance 4,398,900

Add: Accumulated Adjustments 578,000
Final Balance 4,976,000
8. Prepaid Insurance:

Initial Balance 29,400

Less: Accumulated Adjustments (6,250)
Final Balance 23,150
9. Land

Initial Balance of Land and Building 8,600,000

Multiply by 20% (Part designated to Land) .20
Final Balance for Land 1,720,000
10. Building

Initial Balance of Land and Building 8,600,000

Multiply by 80% (Part designated to Building) .80
Final Balance for Building 6,880,000
11. Accumulated Depreciation

Initial Balance 0
Add: Accumulated Depreciation for Building 150,000
Final Balance 150,000
12. Carrying Value for Leasehold Improvements

Initial Balance Leasehold Improvements 168,000

Less: Accumulated Depreciation Leasehold Improvements (16,800)
Carrying Value Leasehold Improvements 150,000
13. Franchise

Initial Balance 500,000

Less: Accumulated Amortization (50,000)
Carrying Amount Franchise 450,000
14. Licensing Agreement, net

Licensing Agreements 360,000

Accumulated Amortization – Licensing Agreements 216,000
Carrying Value Licensing Agreements 144,000
15. Accounts Payable
 Initial Balance 2,141,550
Add: Accumulated Adjustments 62,650
Final Balance 2,204,200
16. Accrued Expenses:

Initial Balance 598,020

Add: Accumulated Adjustments 50,800
Final BALANCE 648,820
17. Unearned Revenues:

Initial Balance 0
Add: Accumulated Adjustments 130,000
Final Balance 130,000

18. Interest Payable

Initial Balance 0
Add: Accumulated Adjustments 380,000
Final Balance 380,000
19. Income Taxes Payable

Initial Balance 193,365

Less: Accumulated Adjustments (127,126)
Final Balance 66,239
20. Dividends Payable

Initial Balance 0
Add: Accumulated Adjustments 1,250,000
Final Balance 1,250,000
21. Current Portion of a Long-term Debt

Initial Balance 0
Add: Accumulated Adjustments 500,000
Final Balance 500,000
22. Discounts on Bonds Payable

Initial Balance 122,000

Less: Accumulated Adjustments (7,800)
Final Balance 114,200
23. Ordinary Share Capital

Initial Balance 5,000,0000

24. Retained Earnings

Initial Balance 2,867,840

25. Sales

Initial Balance 32,250,000

Less: Accumulated Adjustments (661,000)
Final Balance 31,589,000
26. Cost of Goods Sold

Initial Balance 18,169,950

Less: Accumulated Adjustments (563,650)
Final Balance 17,606,300
27. Marketing and Administrative Expenses

Initial Balance 8,900,400

Less: Accumulated Adjustments (531,7590)
Final Balance 8,368,650
28. Other Income

Initial Balance 180,000

Less: Accumulated Adjustments (160,000)
Final Balance 20,000
29. Interest Expense

Initial Balance 404,320

Add: Accumulated Adjustments 387,800
Final Balance 792,120
30. Profit

Sales 31,589,000
Cost of Goods Sold (17,606,300)
Gross Profit 13,982,700
Other Income 20,000
Total Income 14,002,700
Marketing and Administrative Expense (8,368,650)
Income before Interest and taxes 5,634,050
Interest expense (792,120)
Profit Before Tax 4,841,930
Income Tax (4,841,930*.30) 1,452,579
Profit 3,389,351