1. PREPARE AN INCOME STATEMENT & BALANCE SHEET - TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BAL INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT CASH 419,640.0 419,640.0 ACCOUNTS RECEIVABLE 30,000.0 30,000.0 SUPPLIES 10,000.0 1)8000 2,000.0 PREPAID INSURANCE 12,000.0 2)1000 11,000.0 OFFICE EQUIPMENT 40,000.0 40,000.0 ACCOUNTS PAYABLE 40,000.0 40,000.0 APEX, CAPITAL 500,000.0 500,000.0 APEX DRAWING 10,000.0 10,000.0 PURCHASES 85,000.0 85,000.0 PURCHASE RETURN 3,000.0 3,000.0 PURCHASE DISCOUNT 1,440.0 1,440.0 SALES 110,000.0 110,000.0 SALES DISCOUNT 800.0 800.0 SALARIES EXPENSE 30,000.0 30,000.0 TAXES EXPENSE 2,000.0 2,000.0 RENT EXPENSE 15,000.0 15,000.0 654,440.0 654,440.0 SUPPLIES EXPENSE 1)8000 8,000.0 INSURANCE EXPENSE 2)1000 1,000.0 DEPRICIATION EXPENSE 3)4000 4,000.0 ACCUMULATED DEPRICIATION 3)4000 4,000.0 MERCHANDISE INVENTORY 4)30,000 30,000.0 INCOME SUMMARY 4)30,000 30,000.0 688,440.0 688,440.0
1. PREPARE AN INCOME STATEMENT & BALANCE SHEET - TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BAL INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT CASH 419,640.0 419,640.0 ACCOUNTS RECEIVABLE 30,000.0 30,000.0 SUPPLIES 10,000.0 1)8000 2,000.0 PREPAID INSURANCE 12,000.0 2)1000 11,000.0 OFFICE EQUIPMENT 40,000.0 40,000.0 ACCOUNTS PAYABLE 40,000.0 40,000.0 APEX, CAPITAL 500,000.0 500,000.0 APEX DRAWING 10,000.0 10,000.0 PURCHASES 85,000.0 85,000.0 PURCHASE RETURN 3,000.0 3,000.0 PURCHASE DISCOUNT 1,440.0 1,440.0 SALES 110,000.0 110,000.0 SALES DISCOUNT 800.0 800.0 SALARIES EXPENSE 30,000.0 30,000.0 TAXES EXPENSE 2,000.0 2,000.0 RENT EXPENSE 15,000.0 15,000.0 654,440.0 654,440.0 SUPPLIES EXPENSE 1)8000 8,000.0 INSURANCE EXPENSE 2)1000 1,000.0 DEPRICIATION EXPENSE 3)4000 4,000.0 ACCUMULATED DEPRICIATION 3)4000 4,000.0 MERCHANDISE INVENTORY 4)30,000 30,000.0 INCOME SUMMARY 4)30,000 30,000.0 688,440.0 688,440.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. PREPARE AN INCOME STATEMENT &
| - | |
ADJUSTMENTS | ADJUSTED TRIAL BAL | INCOME STATEMENT | BALANCE SHEET | |||||
| ACCOUNT TITLE | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT |
| CASH | 419,640.0 | 419,640.0 | ||||||||
| |
30,000.0 | 30,000.0 | ||||||||
| SUPPLIES | 10,000.0 | 1)8000 | 2,000.0 | |||||||
| PREPAID INSURANCE | 12,000.0 | 2)1000 | 11,000.0 | |||||||
| OFFICE EQUIPMENT | 40,000.0 | 40,000.0 | ||||||||
| ACCOUNTS PAYABLE | 40,000.0 | 40,000.0 | ||||||||
| APEX, CAPITAL | 500,000.0 | 500,000.0 | ||||||||
| APEX DRAWING | 10,000.0 | 10,000.0 | ||||||||
| PURCHASES | 85,000.0 | 85,000.0 | ||||||||
| PURCHASE RETURN | 3,000.0 | 3,000.0 | ||||||||
| PURCHASE DISCOUNT | 1,440.0 | 1,440.0 | ||||||||
| SALES | 110,000.0 | 110,000.0 | ||||||||
| SALES DISCOUNT | 800.0 | 800.0 | ||||||||
| SALARIES EXPENSE | 30,000.0 | 30,000.0 | ||||||||
| TAXES EXPENSE | 2,000.0 | 2,000.0 | ||||||||
| RENT EXPENSE | 15,000.0 | 15,000.0 | ||||||||
| 654,440.0 | 654,440.0 | |||||||||
| SUPPLIES EXPENSE | 1)8000 | 8,000.0 | ||||||||
| INSURANCE EXPENSE | 2)1000 | 1,000.0 | ||||||||
| DEPRICIATION EXPENSE | 3)4000 | 4,000.0 | ||||||||
| ACCUMULATED DEPRICIATION | 3)4000 | 4,000.0 | ||||||||
| MERCHANDISE INVENTORY | 4)30,000 | 30,000.0 | ||||||||
| INCOME SUMMARY | 4)30,000 | 30,000.0 | ||||||||
| 688,440.0 | 688,440.0 |
Transcribed Image Text:Problem 3
APEX Company established its merchandising business in January 2, 2020. The following transactions
took place in its first month of operation.
Jan. 2 Deposited P500,000 in the company's account.
4. Purchased supplies, P10,000 for cash
5. Purchased office equipment on account, P40,000
8. Paid 1 year insurance< P12,000.
10.Purchased goods for cash, P 30,000
13.Purchased goods on account, P50,000, terms 3/10, n/30.
14. Sold merchandise on account, P40,000, terms 2/10,n/30
15 Paid salaries, P15,000
16 Paid taxes, P2,000
18. Sold merchandise for cash, P30,000
19. Paid rent for the month, P15,000
20. Returned P2,000 worth of merchandise purchase on account
21Paid creditor on account purchased on Jan. 13.
22. Received cash from customers on account.
25. Purchased goods for cash, P5,000
26. Sold merchandise on account, P30,000, 2/10,n/20
29. Sold merchandise for cash, P10,000
Transcribed Image Text:30. Paid salaries, P15,000
31. Withdrew cash for personal use, P10,000
31.Returned defective merchandise purchased for cash, P1,000
DATA FOR ADJUSTMENTS:
1. Supplies on hand, P8,000
2. Prepaid insurance expired, P1,000
3. Depreciation of equipment, P4,000
4. Merchandise inventory end, P30,000
Required:
1. Journalize the above transactions using the following account titles: CASH, 101; ACCOUNTS
RECEIVABLE, 102;MERCHANDISE INVENTORY, 103; SUPPLIES, 104; PREPAID INSURANCE, 105;
OFFICE EQUIPMENT, 106, ACCUMULATED DEPRECIATION, 107; ACCOUNTS PAYABLE, 201; APEX,
CAPITAL, 301, APEX DRAWING, 302; PURCHASES, 401; PURCHASE RETURN AND ALLOWANCEES,
402, PURCHASE DISCOUNTS, 403; SALES, 501; SALES RETURN AND ALLOWANCES, 502, SALES
DISCOUNTS, 503; INCOME SUMMARY, 504; INSURANCE EXPENSE, 601, SUPPLIES EXPENSE, 602;
SALARIES EXPENSE, 603; TAXES EXPENSE, 604; RENT EXPENSE, 605; DEPRECIAITON EXPENSE, 606
2. Post to the ledger.
3. Prepare trial balance
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