Teresita Buenaflor Shoes

Ledger

Account No. Date

110
1-Feb
1-Feb
2-Feb
7-Feb
7-Feb
8-Feb
9-Feb
12-Feb
14-Feb
15-Feb
18-Feb
19-Feb
22-Feb
23-Feb
24-Feb
28-Feb

120
1-Feb
1-Feb
5-Feb
10-Feb
12-Feb
16-Feb
23-Feb
25-Feb
26-Feb

130
1-Feb

140
1-Feb
1-Feb

150
1-Feb

160
1-Feb
170
1-Feb

175
1-Feb

180
1-Feb

185
1-Feb

210
1-Feb

230
1-Feb

310
1-Feb

320
28-Feb

410
5-Feb
7-Feb
16-Feb
25-Feb

420
10-Feb
26-Feb

430
12-Feb
23-Feb
510
4-Feb
20-Feb
24-Feb

520
28-Feb

530
2-Feb
8-Feb

540
9-Feb
24-Feb

610
15-Feb

660
18-Feb

670
7-Feb

680
14-Feb

690
22-Feb
 Teresita Buenaflor Shoes
Ledger

Account Title/Description Debit

CASH
Beginning balance 33,000
Collections from customer on account 113,000
Paid accounts due less discount of 3%
Paid for advertising expense
Sold merchandise for cash 250,000
Paid the amount due
Paid the freight for delivering merchandise
Received payment from Gonzales Inc., less returns and discounts 196,000
Payment of interest on the mortgage payable
To record salaries expense
Paid freight charges
Acquired supplies for cash
To record miscellaneous expense
Received payment from Ronzales Corp. less discount 384,160
Paid La Paz Express for delivering merchandise
To record withdrawal from the business

ACCOUNTS RECEIVABLE
Beginning balance 192,000
Collections from customer on account
Sold merchandise on account; term FOB shipping point 2/10, n/30 270,000
Received returns from the Gonzales, Inc.
Received payment from Gonzales Inc., less returns and discounts
Sold merchandise on account; term FOB destination 2/10, n/30 392,000
Received payment from Ronzales Corp. less discount
Sold merchandise on account; term FOB shipping point 2/10, n/30 420,000
Received returns from the Ronzales Corp.

MERCHANDISE INVENTORY
Beginning balance 413,000

SUPPLIES
Beginning balance 51,000
Acquired supplies for cash 21,000

PREPAID INSURANCE
Beginning balance 48,000

LAND
Beginning balance 460,000
BUILDING
Beginning balance 1,750,000

ACCUMULATED DEPRECIATION - BUILDING

Beginning balance

EQUIPMENT
Beginning balance 2,310,000

ACCUMULATED DEPRECIATION - EQUIPMENT

Beginning balance

ACCOUNTS PAYABLE
Beginning balance
Paid accounts due less discount of 3% 64,000
Purchased merchandise on account; term FOB shipping point 3/10, n/30
Paid the amount due 170,000
Purchased merchandise on account; term FOB destination 3/10, n/30
Purchased merchandise on account; term FOB shipping point, 3/10. n/30
Returned merchandise purchase 25,000

MORTGAGE PAYABLE
Beginning balance

BUENAFLOR, CAPITAL
Beginning balance

BUENAFLOR, WITHDRAWALS
To record withdrawal from the business 400,000

SALES
Sold merchandise on account; term FOB shipping point 2/10, n/30
Sold merchandise for cash
Sold merchandise on account; term FOB destination 2/10, n/30
Sold merchandise on account; term FOB shipping point 2/10, n/30

SALES RETURN AND ALLOWANCES

Received returns from the Gonzales, Inc. 70,000
Received returns from the Ronzales Corp. 71,000

SALES DISCOUNT
Received payment from Gonzales Inc., less returns and discounts 4,000
Received payment from Ronzales Corp. less discount 7,840
PURCHASES
Purchased merchandise on account; term FOB shipping point 3/10, n/30 170,000
Purchased merchandise on account; term FOB destination 3/10, n/30 125,000
Purchased merchandise on account; term FOB shipping point, 3/10. n/30 373,000

PURCHASES RETURNS AND ALLOWANCES

Returned merchandise purchase

PURCHASES DISCOUNTS
Paid accounts due less discount of 3%
Paid the amount due

TRANSPORTATION IN
Paid the freight for delivering merchandise 4,000
Paid La Paz Express for delivering merchandise 9,000

SALARIES EXPENSE
To record salaries expense 51,000

TRANSPORTATION OUT
Paid freight charges 4,000

ADVERTISING EXPENSE
Paid for advertising expense 6,000

INTEREST EXPENSE
Payment of interest on the mortgage payable 26,000

MISCELLANEOUS EXPENSE
To record miscellaneous expense 7,000
Credit Balance

33,000
146,000
62,080 83,920
6,000 77,920
327,920
164,900 163,020
4,000 159,020
355,020
26,000 329,020
51,000 278,020
4,000 274,020
21,000 253,020
7,000 246,020
630,180
9,000 621,180
400,000 221,180

192,000
113,000 79,000
349,000
70,000 279,000
200,000 79,000
471,000
392,000 79,000
499,000
71,000 428,000

413,000

51,000
72,000

48,000

460,000
 1,750,000

350,000 350,000

2,310,000

630,000 630,000

108,000 108,000
44,000
170,000 214,000
44,000
125,000 169,000
373,000 542,000
517,000

2,600,000 2,600,000

1,569,000 1,569,000

400,000

270,000 270,000
250,000 520,000
392,000 912,000
420,000 1,332,000

70,000
141,000

4,000
11,840
 170,000
295,000
668,000

25,000 25,000

1,920 1,920
5,100 7,020

4,000
13,000

51,000

4,000

6,000

26,000

7,000
 Teresita Buenaflor Shoes
Journal

Date Account Title

1-Feb Cash
Accounts Receivable
Collections from customer on account
2-Feb Accounts Payable
Purchases Discount
Cash
Paid accounts due less discount of 3%
4-Feb Purchases
Accounts Payable
Purchased merchandise on account; term FOB shipping point 3/10, n/30
5-Feb Accounts Receivable
Sales
Sold merchandise on account; term FOB shipping point 2/10, n/30
7-Feb Advertising Expense
Cash
Paid for advertising expense
7-Feb Cash
Sales
Sold merchandise for cash
8-Feb Accounts Payable
Purchases Discount
Cash
Paid the amount due
9-Feb Transportation In
Cash
Paid the freight for delivering merchandise
10-Feb Sales Return and Allowances
Accounts Receivable
Received returns from the Gonzales, Inc.
12-Feb Sales Discount
Cash
Accounts Receivable
Received payment from Gonzales Inc., less returns and discounts
14-Feb Interest Expense
Cash
Payment of interest on the mortgage payable
15-Feb Salaries Expense
Cash
to record salaries expense
16-Feb Accounts Receivable
Sales
 Sold merchandise on account; term FOB destination 2/10, n/30
18-Feb Transportation Out
Cash
Paid freight charges
19-Feb Supplies
Cash
Acquired supplies for cash
20-Feb Purchases
Accounts Payable
Purchased merchandise on account; term FOB destination 3/10, n/30
22-Feb Miscellaneous Expense
Cash
to record miscellaneous expense
23-Feb Sales Discount
Cash
Accounts Receivable
received payment from Ronzales Corp. less discount
24-Feb Purchases
Accounts Payable
Purchased merchandise on account; term FOB shipping point, 3/10. n/30
24-Feb Transportation In
Cash
Paid La Paz Express for delivering merchandise
25-Feb Accounts Receivable
Sales
Sold merchandise on account; term FOB shipping point 2/10, n/30
26-Feb Sales Return and Allowances
Accounts Receivable
Received returns from the Ronzales Corp.
28-Feb Buenaflor, withdrawal
Cash
to record withdrawal from the business
28-Feb Accounts Payable
Purchased Return and Allowances
Returned merchandise purchase
Debit Credit
113,000
113,000

64,000
1,920
62,080

170,000
170,000

270,000
270,000

6,000
6,000

250,000
250,000

170,000
5,100
164,900

4,000
4,000

70,000
70,000

4,000
196,000
200,000

26,000
26,000

51,000
51,000

392,000
392,000
 4,000
4,000

21,000
21,000

125,000
125,000

7,000
7,000

7,840
384,160
392,000

373,000
373,000

9,000
9,000

420,000
420,000

71,000
71,000

400,000
400,000

25,000
25,000
 Teresita Buenaflor Shoes
Worksheet
February 28,2020
Unadjusted Trial Balance Adjustments
Account No. Account Title Debit Credit Debit
110 Cash 221,180
120 Accounts Receivable 428,000
130 Merchandise Inventory 413,000
140 Supplies 72,000 d
150 Prepaid Insurance 48,000 b
160 Land 460,000
170 Building 1,750,000
175 Accumulated Depreciation - Building 350,000 c
180 Equipment 2,310,000
185 Accumulated Depreciation - Equipment 630,000 c
210 Accounts Payable 517,000
220 Salaries Payable a
230 Mortgage Payable 2,600,000
310 Buenaflor, Capital 1,569,000
320 Buenaflor, Withdrawals 400,000
330 Income Summary
410 Sales 1,332,000
420 Sales Return and Allowances 141,000
430 Sales Discounts 11,840
510 Purchases 668,000
520 Purchases Returns and Allowances 25,000
530 Purchases Discounts 7,020
540 Transportation In 13,000
610 Salaries Expense 51,000 a 51,000
620 Supplies Expense d 58,000
630 Insurance Expense b 2,000
640 Depreciation Expense - Building c 9,000
650 Depreciation Expense - Equipment c 12,000
660 Transportation Out 4,000
670 Advertising Expense 6,000
680 Interest Expense 26,000
690 Miscellaneous Expense 7,000
7,030,020 7,030,020 132,000
Net Income
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit
221,180 221,180
428,000 428,000
413,000 413,000 397,000 397,000
58,000 14,000 14,000
2,000 46,000 46,000
460,000 460,000
1,750,000 1,750,000
9,000 359,000 359,000
2,310,000 2,310,000
12,000 642,000 642,000
517,000 517,000
51,000 51,000 51,000
2,600,000 2,600,000
1,569,000 1,569,000
400,000 400,000

1,332,000 1,332,000
141,000 141,000
11,840 11,840
668,000 668,000
25,000 25,000
7,020 7,020
13,000 13,000
102,000 102,000
58,000 58,000
2,000 2,000
9,000 9,000
12,000 12,000
4,000 4,000
6,000 6,000
26,000 26,000
7,000 7,000
132,000 7,102,020 7,102,020 1,472,840 1,761,020 6,026,180 5,738,000
288,180 288,180
1,761,020 1,761,020 6,026,180 6,026,180
 Teresita Buenaflor Shoes
(Buenaflor, Proprietor)
INCOME STATEMENT
For the month ended February 28, 2020

SALES 1,332,000
Sales Discount 11,840
Sales Returns and Allowances 141,000
Total Deductions for Sales 152,840
Net Sales 1,179,160
Cost of Sales
Merchandise Inventory, 2/1/2020 413,000
Purchases 668,000
Purchases Discounts 7,020
Purchase Returns and Allowances 25,000
Total Deduction for Purchases 32,020
Net Purchases 635,980
Transportation In 13,000
Net Cost of Purchases 648,980
Total Goods Available for Sale 1,061,980
Merchandise Inventory, 2/28/2020 397,000
Cost of Sales 664,980
Gross Profit 514,180
Operating Expense
Selling Expenses
Transportation Out 4,000
Advertising Expense 6,000
Total Selling Expenses 10,000
Aministrative Expenses
Salaries Expense 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense - Building 9,000
Depreciation Expense - Equipment 12,000
Total Administrative Expenses 183,000
Total Operating Expenses 193,000
Operating Profit 321,180
Other Expenses
Interest Expenses 26,000
Miscellaneous Expenses 7,000
Total Other Expenses 33,000
NET INCOME 288,180
 Teresita Buenaflor Shoes
(Buenaflor, Proprietor)
STATEMENT OF CHANGES IN OWNER'S EQUITY
For the Month Ended February 28, 2020

Buenaflor, Owner's Equity, 2/1/2020

Add: Profit
Total
Less: Withdrawals
Buenaflor, Owner's Equity, 2/28/2020

Teresita Buenaflor Shoes

BALANCE SHEET
28-Feb-20

Assets
Current Assets
Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Insurance 46,000
Total Curent Assets 1,106,180
Non-Current Assets
Land 460,000
Building 1,750,000
Less: Accumulated Depreciation 359,000 1,391,000
Office Equipment 2,310,000
Less: Accumulated Depreciation 642,000 1,668,000 3,519,000
Total Assets 4,625,180

Liabilities
Current Liabilities
Accounts Payable 517,000
Salaries Payable 51,000
Total Current Liabilities 568,000
Non-Current Liabilities
Mortgage Payable 2,600,000
Total Liabilities 3,168,000

Owner's Equity
Buenaflor, Capital, Feb 28 1,457,180
Total Liabilities and Owner's Equity 4,625,180
UITY
0

1,569,000
288,180
1,857,180
400,000
1,457,180
Adjusting and Closing Entries

Date Account Titles and Explanation Debit Credit

2020
28-Feb Merchandise Inventory, End 397,000
Sales 1,332,000
Purchases Returns and Allowances 25,000
Purchases Discounts 7,020
Income Summary 1,761,020
to close temporary accounts with credit balances and to establish the ending merchandise inventory

28-Feb Income Summary 1,472,840

Merchandise Inventory, Beg 413,000
Sales Returns and Allowances 141,000
Sales Discounts 11,840
Purchases 668,000
Transportation In 13,000
Salaries Expense 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense - building 9,000
Depreciation Expense - equipment 12,000
Transportation Out 4,000
Advertising Expense 6,000
Interest Expense 26,000
Miscellaneous Expense 7,000
to close temporary accounts with debit balances and to remove beginning inventory

28-Feb Income Summary 288,180

Buenaflor, Capital 288,180
to close the income summary account

28-Feb Buenaflor, Capital 400,000

Buenaflor, Withdrawals 400,000
to close the withdrawal account
handise inventory
 Teresita BuenaflorShoes
Post-closing Trial Balance
February 28,2020

Cash 221,180
Accounts Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Insurance 46,000
Land 460,000
Building 1,750,000
Accumulated Depreciation - Building 359,000
Equipment 2,310,000
Accumulated Depreciation - Equipment 642,000
Accounts Payable 517,000
Salaries Payable 51,000
Mortgage Payable 2,600,000
Buenaflor, Capital 1,457,180
5,626,180 5,626,180