CASTRO COMPANY

CHART OF ACCOUNTS
CODE ACCOUNT TITLES
Assets: 101 to 170
101 Cash
110 Accounts Receivable
120 Office Supplies
130 Prepaid Insurance
140 Land
150 Building
155 ACCUMULATED DEP - BLDG
160 Equipment
165 ACCUMULATED DEP - Eq
170 Merchandise Inventory
Liabilities: 210 to 230
210 Accounts Payable
220 Salaries Payable
230 Mortgage Payable
Equity: 310 to 320
310 Castro, Capital
320 Castro, Drawings
Revenues: 410 to 430
410 Sales
420 Sales Discount
430 Sales Return and Allowances
Expenses: 510 to 592
510 Salaries Expense
520 Office Supplies Expense
530 Insurance Expense
540 Depreciation Expense
550 Transportation In
555 Transportation Out
560 Purchase Discount
570 Purchases
580 Purchases Return and Allowances
590 Representation Expense
591 Interest Expense
592 Repairs Expense
 CASTRO COMPANY
GENERAL JOURNAL

DATE PARTICULARS
Dec. 1, 2015 Accounts Payable
Cash
Purchase Discount

3 Cash
Sales Discount
Accounts Receivable

4 Accounts Receivable
Sales

5 Sales Return and Allowances

Accounts Receivable

7 Purchases
Accounts Payable

9 Accounts Payable
Purchases Return and Allowances

10 Interest Expense
Cash

11 Cash
Sales Discount
Accounts Receivable

12 Transportation Out
Cash
13 Accounts Payable
Cash
Purchase Discount

14 Accounts Receivable
Sales

14 Transportation In
Cash

15 Salaries Expense
Cash

18 Purchases
Accounts Payable

18 Office Supplies
Cash

19 Cash
Sales Discount
Accounts Receivable

20 Accounts Payable
Purchases Return and Allowances

21 Representation Expense
Cash

23 Accounts Receivable
Sales

24 Accounts Payable
Cash
 Purchase Discount

26 Representation Expense
Cash

28 Transportation In
Cash

29 Purchases
Accounts Payable

29 Sales Return and Allowances

Accounts Receivable

30 Repairs Expense
Cash

31 Castro, Drawings
Cash
 CASTRO COMPANY
GENERAL JOURNAL

Purchase Discount
To settle accounts payable with 2% discount.

Accounts Receivable
Collected receivable on account with 3% discount.

To record sales on account to A. Pural Supplies.

n and Allowances
Accounts Receivable
To record the returns of A. Pural Supplies.

Accounts Payable
To record the purchases on account from Naga Products.

Purchases Return and Allowances

Returned goods to Naga Product acquired last Dec. 7.

Paid monthly interest.

Accounts Receivable
Received payment from A. Pural Supplies

Paid freight Charges on Dec. 4 shipment.

Purchase Discount
Paid Naga Products for merchandise purchased on Dec. 7 less returns.

Sold merchandise on account to Ruiz Shoppers.

Paid freight charges for merchandise acquired fron Naga Products last dec. 7

Paid Salaries.

Accounts Payable
Purchased merchandise on acocunt from Oquendo Trading.

Acquired office supplies for cash.

Accounts Receivable
Received payment from Ruiz Shoppers last Dec 14 less discount.

Purchases Return and Allowances

To record returns to Oquendo Trading On dec. 18

tion Expense

To record Representation expense.

Sold merchandise to Pimentel Shop.

Purchase Discount
Paid Oquendo Trading for merchandise purchased on Dec 18 less returns.

tion Expense

Paid representation expense for cash.

Paid freight charges from Oquendo Trading on Dec 18.

Accounts Payable
Purchase merch on account from Nueva Wholesale Company.

n and Allowances
Accounts Receivable
Received returns from Pimentel Shop from the sale on Dec 23.

Paid repairs on equipment for cash.

Withdrawal of cash from business.

PR DEBIT CREDIT
210 115,000.00
101 112,700.00
560 2,300.00

101 174,600.00
420 5,400.00
110 180,000.00

110 210,000.00
410 210,000.00

430 25,000.00
110 25,000.00

570 232,000.00
210 232,000.00

210 12,000.00
580 12,000.00

591 8,000.00
101 8,000.00

101 179,450.00
420 5,550.00
110 185,000.00

555 13,000.00
101 13,000.00
210 220,000.00
101 215,600.00
560 4,400.00

110 330000
410 330,000.00

550 6,000.00
101 6,000.00

510 74,000.00
101 74,000.00

570 113,000.00
210 113,000.00

120 9,000.00
101 9,000.00

101 320,100.00
420 9,900.00
110 330,000.00

210 8,000.00
580 8,000.00

590 3,000.00
101 3,000.00

110 242,000.00
410 242,000.00

210 105,000.00
101 102,900.00
560 2,100.00

590 9,000.00
101 9,000.00

550 14,000.00
101 14,000.00

570 378,000.00
210 378,000.00

430 18,000.00
110 18,000.00

592 19,000.00
101 19,000.00

320 170,000.00
101 170,000.00
 CASH ACCOUNTS RECEIVABLE
214,000.00 338,000.00
674,150.00 756,200.00 782,000.00
131,950.00 382,000.00

LAND BUILDING
370,000.00 900,000.00
- - -
370,000.00 900,000.00

REPRESENTATION EXPENSE CASTRO , CAPITAL

12,000.00 - -
12,000.00 -

SALARIES EXPENSE REPAIRS EXPENSE

74,000.00 - 19,000.00
74,000.00 19,000.00

73,000.00

147,000.00

ACCUMULATED DEP - EQUIPMENT ACCUMULATED DEP- BLDG

200,000.00
200,000.00
4,500.00
 204,500.00

TRANSPORTATION IN

20,000.00 -
20,000.00

20,000.00

TRANSPORTATION OUT

13,000.00 -
13,000.00

13,000.00
CCOUNTS RECEIVABLE OFFICE SUPPLIES
31,000.00
738,000.00 9,000.00 -
40,000.00
33,000.00

7,000.00

BUILDING ACCOUNTS PAYABLE

172,000.00
- 460,000.00 723,000.00
435,000.00

CASTRO , CAPITAL CASTRO, DRAWINGS

1,305,000.00
- 170,000.00 -
1,305,000.00 170,000.00

REPAIRS EXPENSE INSURANCE EXPENSE

2,000.00

CUMULATED DEP- BLDG PURCHASES

250,000.00 723,000.00
250,000.00 723,000.00
3,000.00
253,000.00
 PREPAID INSURANCE EQUIPMENT
48,000.00 800,000.00
- - -
48,000.00 800,000.00
2,000.00 -

46,000.00

SALARIES PAYABLE MORTGAGE PAYABLE

- - -
-
73,000.00 -

SALES SALES DISCOUNT

- 782,000.00 20,850.00
782,000.00 20,850.00

-
782,000.00

OFFICE SUPPLIES EXPENSE DEPRECIATION EXPENSE

33,000.00 7,500.00

INTEREST EXPENSE PURCHASES DISCOUNT

8,000.00 -
8,000.00
-
PURCHASES RETURN AND ALLOWANCES

-
 EQUIPMENT MERCHANDISE INVENTORY
426,000.00
- - -
426,000.00
227,000.00
653,000.00

MORTGAGE PAYABLE
1,200,000.00
-
1,200,000.00

1,200,000.00

SALES DISCOUNT SALES RETURN AND ALLOWANCES

- 43,000.00 -
43,000.00

PRECIATION EXPENSE

RCHASES DISCOUNT

8,800.00
8,800.00
S RETURN AND ALLOWANCES

20,000.00
20,000.00
 ACCOUNTS UNADJUSTED TRIAL BALANCE
DEBIT CREDIT
Cash 131,950.00
Accounts Receivable 382,000.00
Merchandise Inventory 426,000.00
Office Supplies 40,000.00
Prepaid Insurance 48,000.00
Equipment 800,000.00
Accumulated Dep - Equipment 200,000.00
Land 370,000.00
Building 900,000.00
Accumulated Dep - Bldg 250,000.00
Accounts Payable 435,000.00
Salaries Payable
Mortgage Payable 1,200,000.00
Marasigan, Capital 1,305,000.00
Marasigan, Drawings 170,000.00
Sales 782,000.00
Sales Discount 20,850.00
Sales Return and Allowances 43,000.00
Purchases 723,000.00
Purchases Discount 8,800.00
Purchases Return and Allowances 20,000.00
Salaries Expense 74,000.00
Repairs Expense 19,000.00
Transportation In 20,000.00
Transportation Out 13,000.00
Representation Expense 12,000.00
Insurance Expense
OfficeSupplies Expense
Depreciation Expense
Interest Expense 8,000.00
Income Summary
TOTAL 4,200,800.00 4,200,800.00
Net Income (Loss)
TOTAL
 CASTRO COMPANY
WORKSHEET
ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT
DEBIT CREDIT DEBIT CREDIT DEBIT
131,950.00
382,000.00
227,000.00 426,000.00 426,000.00
33,000.00 7,000.00
2,000.00 46,000.00
800,000.00
4,500.00 204,500.00
370,000.00
900,000.00
3,000.00 253,000.00
435,000.00
73,000.00 73,000.00
1,200,000.00
1,305,000.00
170,000.00
782,000.00
20,850.00 20,850.00
43,000.00 43,000.00
723,000.00 723,000.00
8,800.00
20,000.00
73,000.00 147,000.00 147,000.00
19,000.00 19,000.00
20,000.00 20,000.00
13,000.00 13,000.00
12,000.00 12,000.00
2,000.00 2,000.00 2,000.00
33,000.00 33,000.00 33,000.00
7,500.00 7,500.00 7,500.00
8,000.00 8,000.00
426,000.00 653,000.00
115,500.00 115,500.00 4,281,300.00 4,281,300.00 1,474,350.00
(10,550.00)
1,463,800.00
NCOME STATEMENT BALANCE SHEET POST- CLOSING TB
CREDIT DEBIT CREDIT DEBIT CREDIT
131,950.00 131,950.00
382,000.00 382,000.00
653,000.00 653,000.00 653,000.00
7,000.00 7,000.00
46,000.00 46,000.00
800,000.00 800,000.00
204,500.00 204,500.00
370,000.00 370,000.00
900,000.00 900,000.00
253,000.00 253,000.00
435,000.00 435,000.00
73,000.00 73,000.00
1,200,000.00 1,200,000.00
1,305,000.00 1,124,450.00
170,000.00
782,000.00

8,800.00
20,000.00

1,463,800.00 3,459,950.00 3,470,500.00 3,289,950.00 3,289,950.00

(10,550.00)
1,463,800.00 3,459,950.00 3,459,950.00
 STATEMENT OF FINANCIAL POSITION
DR. MARASIGAN
As Of October 2015
ASSETS
CURRENT ASSETS
Cash
Accounts Receivable
Merchandise Inventory
Office Supplies
Prepaid Insurance
TOTAL
NON-CURRENT ASSETS
Land
Equipment
Accumulated Depreciation - Equipment
Building
Accumulated Depreciation - Building
TOTAL
TOTAL ASSETS
LIABILITIES & EQUITY
Accounts Payable
Salaries Payable
Mortgage Payable
TOTAL
TOTAL LIABILITIES
OWNER'S EQUITY
Castro, Capital, ending
TOTAL EQUITY
TOTAL LIABILITIES & EQUITY
NCIAL POSITION
SIGAN
r 2015

131,950.00
382,000.00
653,000.00
7,000.00
46,000.00
1,219,950.00

370,000.00
800,000.00
(204,500.00) 595,500.00
900,000.00
(253,000.00) 647,000.00
1,612,500.00
2,832,450.00

435,000.00
73,000.00
1,200,000.00
1,708,000.00
1,708,000.00

1,124,450.00
1,124,450.00
2,832,450.00
 CASTRO COMPANY
ADJUSTING ENTRIES

DATE PARTICULARS
Salaries Expense
Salaries Payable

Insurance Expense
Prepaid Insurance

DEPRECIATION EXPENSE
ACCUMULATED DEP- EQUIPMENT
ACCUMULATED DEP - BLDG

Office Supplies Expense

Office Supplies

Merchandise Inventory
Income Summary
 CASTRO COMPANY
ADJUSTING ENTRIES

PR
510
Salaries Payable 220
Accrued salaries on Dec 31.

530
Prepaid Insurance 130
To record the insurance expired.

ON EXPENSE 540
ACCUMULATED DEP- EQUIPMENT 165
ACCUMULATED DEP - BLDG 155
To record depreciaton expense

es Expense 520
Office Supplies 120
To record the remaining supplies for the month ended

170
ncome Summary
DEBIT CREDIT
73,000.00
73,000.00

2,000.00
2,000.00

7,500.00
4,500.00
3,000.00

33,000.00
33,000.00

227,000.00
227,000.00
 INCOME STATEMENT
CASTRO COMPANY
For the month ended DECEMBER 2015
Net Sales
Gross Sales
Less: Sales Return and Allowances
Sales Discount
Net Sales
Cost of Sales
Merchandise Inventory, beg
Purchases
Purchases Return and Allowances
Purchase Discount
Net Purchases
Freight In
Net Cost of Purchases
Goods Available for Sale
Merchandise Inventory, end
Cost of Sale
Gross profit
Operating Expenses
Salaries Expense
Repairs Expense
Transportation Out
Representation Expense
Insurance Expense
OfficeSupplies Expense
Depreciation Expense
Interest Expense
NET INCOME(LOSS)
EMENT
PANY
ECEMBER 2015

782,000.00
43,000.00
20,850.00 63,850.00
718,150.00

426,000.00
723,000.00
(20,000.00)
(8,800.00)
694,200.00
20,000.00
714,200.00
1,140,200.00
(653,000.00)
(487,200.00)
230,950.00

147,000.00
19,000.00
13,000.00
12,000.00
2,000.00
33,000.00
7,500.00
8,000.00 (241,500.00)
(10,550.00)
 STATEMENT OF CHANGES IN EQUITY
CASTRO COMPANY
For the month ended December 2015

Castro, Capital Dec 1

Add : Net Income (Loss)
TOTAL
Less: Castro, Drawings
Castro, Capital Dec 31
UITY

2015

1,305,000.00
(10,550.00)
1,294,450.00
170,000.00
1,124,450.00
 STATEMENT OF CASH FLOW
CASTRO COMPANY
For the month ended October 2015

CASH FLOW FROM OPERATING ACTIVITIES

Net Loss
Depreciation Expense 7,500.00
Inc in Accounts Receivable (44,000.00)
Inc in Merchandise Inventory (227,000.00)
Dec in Office Supplies 24,000.00
Dec in Prepaid Insurance 2,000.00
Inc in Accounts Payable 263,000.00
Inc in Salaries Payable 73,000.00
Cash provided (used) by operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Cash provided (used) by investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Cash withdrawal of Marasigan
Cash provided (used) by investing activities

Total increase(decrease) in Cash and Cash equivalents

Cash and Cash equivalents, Beg
Cash and Cash equivalents, End
(10,550.00)

98,500.00
87,950.00

170,000.00
170,000.00

(82,050.00)
214,000.00
131,950.00
 CASTRO CO
CLOSING E
DATE PARTICULARS
DEC. 31 MERCHANDISE INVETORY,END
SALES
PURCHASES RETURN AND ALLOWANCES
PURCHASE DISCOUNT
INCOME SUMMARY

31 Income Summary
Merchandise Inventory, beg
Salles Return and Allowances
Sales Discount
Purchases
Transportation In
Insurance Expense
Salaries Expense
Office Supplies Expense
Transportation Out
Depreciation Expense
Interest Expense
Repairs Expense
Representation Expense

31 Castro, Capital
Income Summary

31 Castro, Capital
Castro, Drawings
 CASTRO COMPANY
CLOSING ENTRIES
PARTICULARS
E INVETORY,END

ETURN AND ALLOWANCES

NCOME SUMMARY
To temporary close the accounts with cr. Balances and to establish the ending merchandise inventory

erchandise Inventory, beg

alles Return and Allowances
ales Discount

ansportation In
surance Expense
alaries Expense
fice Supplies Expense
ansportation Out
epreciation Expense
terest Expense
epairs Expense
epresentation Expense
To close Temporary accounts with dr. balances and to remove the beginning inventory.

come Summary
To close Income Summary to capital account

astro, Drawings
To close the withdrawal account.
PR DEBIT CREDIT
653,000.00
782,000.00
20,000.00
8,800.00
1,463,800.00

1,474,350.00
426,000.00
43,000.00
20,850.00
723,000.00
20,000.00
2,000.00
147,000.00
33,000.00
13,000.00
7,500.00
8,000.00
19,000.00
12,000.00

(10,550.00)
(10,550.00)

170,000.00
170,000.00