GENERAL JOURNAL

DATE PARTICULARS F

1 Dec 31 Adjusting Entries:

2 1. Accruals
3 a. Rent Expense
4 Accrued Rent Expense/Rent Payable
5 To record accrual of rent expense.
6
7 b. Accrued Interest Income/Interest Receivable
8 Interest Income
9 To record accrual of interest income.
10
11
12 2. Deferrals
13 a. Asset Method:
14 Insurance Expense
15 Prepaid Insurance
16 To adjust prepayment of insurance.
17
18 Supplies Expense
19 Supplies Inventory
20 To adjust supplies inventory.
21
22 Expense Method:
23 Prepaid Insurance
24 Insurance Expense
25 To adjust prepayment of insurance.
26
27 Supplies Inventory
28 Supplies Expense
29 To adjust supplies expense.
30
31
32 b. Liability Method:
33 Unearned Rent Income
34 Rent Income
35 To adjust precollection of rent income.
36
37 Unearned Service Income
38 Service Income
39 To adjust precollection of service income.
40
41 Income Method:
42 Rent Income
43 Unearned Rent Income
44 To adjust precollection of rent income.
45
46 Service Income
47 Unearned Service Income
48 To adjust precollection of service income.
49
50
51 3. Provision for Uncollectible Accounts
52 a. Uncollectible Accounts
53 Estimated Uncollectible Accounts
54 To record provision for uncollectible accounts.
55
56 Uncollectible Accounts
57 Estimated Uncollectible Accounts
58 To record provision for uncollectible accounts.
59
60 b. Uncollectible Accounts
61 Estimated Uncollectible Accounts
62 To record provision for uncollectible accounts.
63
64 Uncollectible Accounts
65 Estimated Uncollectible Accounts
66 To record provision for uncollectible accounts.
67
68
69 4. Provision for Depreciation
70 a. Depreciation Expense
71 Accumulated Depreciation
72 To record provision for depreciation.
73
74 b. Depreciation Expense
75 Accumulated Depreciation
76 To record provision for depreciation.
DEBIT CREDIT

1
2
50,000.00 3
50,000.00 4
5
6
2,000.00 7
2,000.00 8
9
10
11
12
13
8,000.00 14
8,000.00 15
16
17
6,000.00 18
6,000.00 19
20
21
22
40,000.00 23
40,000.00 24
25
26
4,000.00 27
4,000.00 28
29
30
31
32
5,000.00 33
5,000.00 34
35
36
25,000.00 37
25,000.00 38
39
40
41
19,000.00 42
19,000.00 43
44
45
75,000.00 46
75,000.00 47
48
49
50
51
9,000.00 52
9,000.00 53
54
55
8,500.00 56
8,500.00 57
58
59
1,950.00 60
1,950.00 61
62
63
1,450.00 64
1,450.00 65
66
67
68
69
21,000.00 70
21,000.00 71
72
73
18,000.00 74
18,000.00 75
76
GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 Dec 31 Adjusting Entries:

b. 2 Cash In Bank 22,500.00
3 Accounts Receivable
4 To record collection of customer's account.
5
6 Cash In Bank 12,000.00
7 Sales
8 To record sale of merchandise for cash.
9
c. 10 Accounts Payable 27,000.00
11 Cash In Bank
12 To record payment of account.
13
d. 14 Uncollectible Accounts 3,960.00
15 Estimated Uncollectible Accounts
16 To record provision for uncollectible accounts.
17
e. 18 Salaries Expense 50,000.00
19 Accrued Salaries/Salaries Payable
20 To record accrual on salaries expense.
21
f. 22 Rent Expense 17,000.00
23 Accrued Rent Expense/Rent Payable
24 To record accrual on rent expense.
25
g. 26 Insurance Expense 4,200.00
27 Prepaid Insurance
28 To adjsut prepayment of insurance.
29
h. 30 Supplies Expense 97,500.00
31 Unused Supplies
32 To adjust supplies inventory.
33
i-j. 34 Depreciation Expense 275,500.00
Accumulated Depreciation - Furn. & Fix.
35 Accumulated Depreciation - Delivery Equip.
36 To record provision for depreciation
CREDIT

1
2
22,500.00 3
4
5
6
12,000.00 7
8
9
10
27,000.00 11
12
13
14
3,960.00 15
16
17
18
50,000.00 19
20
21
22
17,000.00 23
24
25
26
4,200.00 27
28
29
30
97,500.00 31
32
33
34
127,500.00
148,000.00 35
36
METRO DAVAO HARDWARE & AUTO SUPPLY
Adjusted Trial Balance
December 31, 2017

Account Title Debit Credit

Cash In Bank 2,610,000.00
Petty Cash Fund 1,500.00
Accounts Receivable 513,000.00
Est. Uncollectible Accounts 10,260.00
Merchandise Inventory, Jan. 1 1,575,000.00
Prepaid Insurance 8,400.00
Unused Supplies 15,000.00
Furniture & Fixtures 1,275,000.00
Accumulated Depreciation - Furn. & Fix. 255,000.00
Delivery Equipment 1,980,000.00
Accumulated Depreciation - Delivery Equip. 296,000.00
Accounts Payable 954,000.00
Accrued Salaries 50,000.00
Accruent Rent Expense 17,000.00
J. Joson, Capital 7,129,200.00
J. Joson, Drawing 45,000.00
Sales 5,989,500.00
Sales Returns & Allowances 8,250.00
Sales Discounts 9,450.00
Purchases 5,475,000.00
Purchase Returns & Allowances 6,900.00
Purchase Discount 4,800.00
Freight In 7,000.00
Freight Out 7,250.00
Salaries Expense 501,500.00
Rent Expense 204,000.00
Advertising Expense 23,700.00
Taxes and Licenses 15,750.00
Utilities Expense 56,700.00
Uncollectible Accounts 3,960.00
Insurance Expense 4,200.00
Supplies Expense 97,500.00
Depreciation Expense 275,500.00

TOTAL 14,712,660.00 14,712,660.00

METRO DAVAO HARDWARE & AUTO SUPPLY
Income Statement
For the Year Ended December 31, 2017

Sales
Less: Sales Returns & Allowances 8,250.00
Sales Discount 9,450.00
Net Sales

Less: Cost of Goods Sold

Merchandise Inventory, Beg. 1,575,000.00
Add: Purchases 5,475,000.00
Freight In 7,000.00
Gross Purchases 5,482,000.00
Less: Purchase Returns & Allowances 6,900.00
Purchase Discount 4,800.00 11,700.00 5,470,300.00
Total Goods Available for Sale 7,045,300.00
Less: Merchandise Inventory, End 2,970,000.00

Gross Profit

Less: Operating Expenses

Freight Out 7,250.00
Salaries Expense 501,500.00
Rent Expense 204,000.00
Advertising Expense 23,700.00
Taxes and Licenses 15,750.00
Utilities Expense 56,700.00
Uncollectible Accounts 3,960.00
Insurance Expense 4,200.00
Supplies Expense 97,500.00
Depreciation Expense 275,500.00

Net Income

METRO DAVAO HARDWARE & AUTO SUPPLY

Statement of Changes in Owner's Equity
For the Year Ended December 31, 2017

J. Joson, Capital, Beg

Add: Additional Investment -
Net Income 706,440.00
Total
Less: Withdrawal
V. Ruben, Capital, End
METRO DAVAO HARDWARE & AUTO SUPPLY
Statement of Financial Position
As of December 31, 2017

5,989,500.00 ASSETS

17,700.00 Current Assets:

5,971,800.00 Cash In Bank
Petty Cash Fund
Accounts Receivable 513,000.00
Est. Uncollectible Accounts -10,260.00
Merchandise Inventory
Prepaid Insurance
Unused Supplies
Total Current Assets

Noncurrent Assets:
4,075,300.00 Furniture & Fixtures 1,275,000.00
Accumulated Depreciation - Furn. & Fix. -255,000.00
1,896,500.00 Delivery Equipment 1,980,000.00
Accumulated Depreciation - Delivery Equip. -296,000.00
Total Noncurrent Assets

TOTAL ASSETS

LIABILITIES & OWNER'S EQUITY

Liabilities:
Accounts Payable ###
Accrued Salaries
1,190,060.00 Accruent Rent Expense
Total Liabilities
706,440.00
Owner's Equity:
J. Joson, Capital

TOTAL LIABILITIES & OWNER'S EQUITY

7,129,200.00

706,440.00
7,835,640.00
45,000.00
7,790,640.00
SUPPLY OTAKU SHOP
on Post-closing Trial Balance
December 31, 2017

ACCOUNT TITLES
Cash In Bank
Petty Cash Fund
2,610,000.00 Accounts Receivable
1,500.00 Est. Uncollectible Accounts
Merchandise Inventory, Jan. 1
502,740.00 Prepaid Insurance
2,970,000.00 Unused Supplies
8,400.00 Furniture & Fixtures
15,000.00 Accumulated Depreciation - Furn. & Fix.
6,107,640.00 Delivery Equipment
Accumulated Depreciation - Delivery Equip.
Accounts Payable
Accrued Salaries
1,020,000.00 Accruent Rent Expense
J. Joson, Capital
1,684,000.00
2,704,000.00 TOTAL

8,811,640.00

954,000.00
50,000.00
17,000.00
1,021,000.00

7,790,640.00

8,811,640.00

-
OTAKU SHOP
st-closing Trial Balance
December 31, 2017

DEBIT CREDIT
2,610,000.00
1,500.00
513,000.00
10,260.00
2,970,000.00
8,400.00
15,000.00
1,275,000.00
255,000.00
1,980,000.00
296,000.00
954,000.00
50,000.00
17,000.00
7,790,640.00

9,372,900.00 9,372,900.00
GENERAL JOURNAL

DATE PARTICULARS F DEBIT

1 Closing Entries:
2 Jan 31 Sales 5,989,500.00
3 Sales Returns & Allowances
4 Sales Discount
5 Income & Expense Summary
6 To close sales and its related accounts.
7
8 Merchandise Inventory, End 2,970,000.00
9 Purchase Returns & Allowances 6,900.00
10 Purchase Discount 4,800.00
11 Income & Expense Summary 4,075,300.00
12 Merchandise Inventory, Beg
13 Purchases
14 Freight In
15 To close cost of goods sold and establishe ending inventory.
16
17 Income & Expense Summary 1,190,060.00
18 Freight Out
19 Salaries Expense
20 Rent Expense
21 Advertising Expense
22 Taxes and Licenses
23 Utilities Expense
24 Uncollectible Accounts
25 Insurance Expense
26 Supplies Expense
27 Depreciation Expense
28 To close expense accounts
29
30 Income & Expense Summary 706,440.00
31 Naruto, Capital
32 To close profit to Capital.
33
34 Naruto, Capital 45,000.00
35 Naruto, Drawing
36 To close withdrawal to Capital
CREDIT

1
2
8,250.00 3
9,450.00 4
5,971,800.00 5
6
7
8
9
10
11
1,575,000.00 12
5,475,000.00 13
7,000.00 14
15
16
17
7,250.00 18
501,500.00 19
204,000.00 20
23,700.00 21
15,750.00 22
56,700.00 23
3,960.00 24
4,200.00 25
97,500.00 26
275,500.00 27
28
29
30
706,440.00 31
32
33
34
45,000.00 35
36