Marian A.

Polanco

Journal entry

Feb 1 Cash 113,000

Accounts receivable 113,000

2 Accounts payable 64,000

Cash 62,080

Purchase discount 1,920

4 Purchases 170,000

Accounts payable 170,000

5 accounts receivable 270,000

Sales 270,000

7 Advertising expenses 6,000

Cash 6,000

7 Cash 250,000

Sales 250,000
8 Accounts payable 170,000

Purchase discount 5,100

Cash 164,900

9 Transportation In 4,000

Cash 4,000

10 Sales return and allowances 70,000

Accounts receivable 70,000

12 Sales discount 4,000

Cash 196,000

Accounts receivable 200,000

14 interest expense 26,000

Cash 26,000

15 Salaries Expense 51,000

Cash 51,000

16 Accounts Receivable 392,000

Sales 392,000
18 Transportation out 4,000

Cash 4,000

19 Supplies 21,000

Cash 21,000

20 Purchases 125,000

Accounts payable 125,000

22 Miscellaneous expenses 7,000

Cash 7,000

23 Cash 384,160

Sales discount 7,840

Accounts Receivable 392,000

24 Purchases 373,000

Accounts payable 373,000

24 Transportation in 9,000

Cash 9,000
25 Accounts receivable 420,000

Sales 420,000

26 Sales return and allowances 71,000

Accounts receivable 71,000

28 Chua, withdrawals 400,000

Cash 400,000

28 Accounts payable 25,000

Purchase returns and allowances 25,000

Adjusting entries

a. Salaries expense 51,000

Salaries payable 51,000

b. Insurance expense 2,000

Prepaid insurance 2,000

c. Depreciation expense- building 9,000

Accumulated depreciation- building 9,000

 Depreciation expense- equipment 12,000

Accumulated depreciation- equipment 12,000

d. Supplies expense 58,000

Supplies 58,000

Unadjusted trial balance Adjusting entries Adjusted Trial balance Income Statement Balance sheet
Account titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash 221 180 221 180 221 180
120 Accounts 428 000 428 000 428 000
receivable
130 Merchandise 413 000 413 000 413 000 397 000 397 000
inventory
140 Supplies 72 000 58 000 14 000 14 000
150 Prepaid 48 000 2 000 46 000 46 000
insurance
160 Land 460 000 460 000 460 000
170 Building 1 750 000 1 750 000 1 750 000
175 Accum. Dep. 350 000 9 000 359 000 359 000
Building
180 Equipment 2 310 000 2 310 000 2 310 000
185 Accum. Dep. – 630 000 12 000 642 000 642 000
equip
210 Accounts 517 000 517 000 517 000
payable
220 Salaries payable 51 000 51 000 51 000
230 Mortgage 2 600 000 2 600 000 2 600 000
payable
310 Chua, capital 1 569 000 1 569 000 1 569 000
320 Chua, 400 000 400 000 400 000
withdrawals
330 Income
 summary
410 Sales 1 332 000 1 332 000 1 332 000
420 Sales returns 141 000 141 000 141 000
and allowances
430 Sales discounts 11 840 11 840 11 840
510 Purchases 668 000 668 000 668 000
520 Purchase return 25 000 25 000 25 000
and allowances
530 Purchase 7020 7 020 7 020
discounts
540 Transportation 13 000 13 000 13 000
In
610 Salaries expense 51 000 51 000 102 000 102 000
620 Supplies 58 000 58 000 58 000
expense
630 Insurance 2 000 2 000 2 000
expense
640 Dep. Exp. – 9 000 9 000 9 000
building
650 Dep. Exp. – 12 000 12 000 12 000
equipment
660 Transportation 4000 4 000 4 000
out
670 Advertising exp. 6000 6 000 6 000
680 Interest exp. 26 000 26 000 26 000
690 Miscellaneous 7 000 7 000 7 000
expense
TOTAL 7 030 020 7 030 020 132 000 132 000 7 102 020 7 102 020 1 472 840 1 761 020 6 026 180 5 738 000
288 180 288 180
1 472 840 1 472 840 6 026 180 6 026 180

Statement of Financial Performance

 For the Month Ended February 28, 2020

Revenues
Sales 1 332 000
Less: Sales Return and Allowances 141 000

Sales discount 11 840 152 840

___________

Net Sales 1 179 160

Cost of Sale

Merchandise Inventory 2/1/2020 413 000

Purchases 668 000

Less: Purchase returns and allowances 25 000

Purchase discount 7 020 32 020__

Net Purchase 635 980

Transportation In 13 000

Net Cost of Purchases 648 980__

Goods Available for Sale 1 061 980

Less: Merchandise Inventory 1/28/2020 397 000

Cost of Sale 664 980

Gross Profit 514 180
Operating expenses

Selling Expenses
Transportation out 4 000
 Advertising Expense 6 000

Total selling expense 10 000

Administrative expenses

Salaries expense 102 000

Supplies expense 58 000

Insurance expense 2000

Depreciation expense- Building 9 000

Depreciation expense- Equipment 12 000

Total administrative expenses 183 000

(193
Total Operating expenses
000)
Operating profit 321 180

Other expenses

Interest expense 26 000

Miscellaneous Expenses 7 000

Total other expenses (33 000)

NET INCOME 288 180

_______

Irene Chua Shoes

Statement of Changes in Owner’s Equity

 For the month ended February 28, 2020

Chua, owner’s Equity 2/1/2020 1 569 000

Add: profit 288 180

Total 1 857 180

Less: Withdrawals 400 000

Chua, owner’s equity 2/28/2020 1 457 180

__

Irene Chua Shoes

Statement of financial position

 February 28, 2020

Assets

Current Asset
Cash 221 180

Accounts receivable 428 000

Merchandise inventory 397 000

Supplies 14 000

Prepaid insurance 46 000

Total current assets 1 106

180
Non-current assets

Land 460 000

Building 1 750 000

Less: accumulated depreciation- building 359 000 1 391 000

Equipment 2 310 000

Less: accumulated depreciation- building 642 000 1 668 000

3 519
Total non-current assets
000
4 625
Total assets
180
________
Liabilities and Owner’s equity

Current liabilities

Accounts payable 517 000

Salaries payable 51 000

 Total current liabilities 568 000

Non-current liabilities

Mortgage payable 2 600 000

Total non-current liabilities 2 600 000

Owner’s equity

Chua, capital 1 457 180

Total liabilities and owner’s equity 4 625 180

_________

Closing entries
Income Summary 1 472 840
Merchandise Inventory Beginning 413 000
Purchases 668 000

Sales Return and Allowances 141 000

Sales discount 11 840

Transportation in 13 000

Transportation out 4 000

Advertising Expense 6 000

Salaries expense 102 000

Supplies expense 58 000

insurance expense 2000

Depreciation expense- Building 9 000

Depreciation expense- Equipment 12 000

Interest expense 26 000

Miscellaneous Expenses 7 000
Merchandise inventory, End 397 000
Revenues 1 332 000

Purchase returns and allowances 25 000

Purchase discount 7 020
Income Summary 1 761 020

Income Summary 288 180

Chua, capital 288 180

Chua, Capital 400 000

Chua, withdrawals 400 000