JOURNAL ENTRIES

Date Account Titles Debit Credit

Feb, 1 Cash 113,000.00
Accounts receivable 113,000.00

2 Accounts payable 64,000.00

Purchase discounts 1,920.00
Cash 62,080.00

4 Purchases 170,000.00
Accounts payable 170,000.00

5 Accounts receivable 270,000.00

Sales 270,000.00

7 Advertising expense 6,000.00

Cash 6,000.00

Cash 250,000.00
Sales 250,000.00

8 Accounts payable 170,000.00

Purchase discounts 5,100.00
Cash 164,900.00

9 Transportation in 4,000.00
Cash 4,000.00

10 Sales returns and allowances 70,000.00

Accounts receivable 70,000.00

12 Cash 196,000.00
Sales discounts 4,000.00
Accounts receivable 200,000.00

14 Interest expense 26,000.00

Cash 26,000.00

15 Salaries expense 51,000.00

Cash 51,000.00

16 Accounts receivable 392,000.00

Sales 392,000.00

18 Transportation out 4,000.00

Cash 4,000.00

19 Supplies 21,000.00
Cash 21,000.00

20 Purchases 125,000.00
 Accounts payable 125,000.00

22 Miscellaneous expense 7,000.00

Cash 7,000.00

23 Cash 384,160.00
Sales discounts 7,840.00
Accounts receivable 392,000.00

24 Purchases 373,000.00
Accounts payable 373,000.00

Transportation in 9,000.00
Cash 9,000.00

25 Accounts receivable 420,000.00

Sales 420,000.00

Sales returns and allowances 71,000.00

Accounts receivable 71,000.00

28 Buenaflor withdrawal 400,000.00

Cash 400,000.00

Accounts payable 25,000.00

Purchase returns and allowances 25,000.00

3,633,000.00 3,633,000.00

ADJUSTING ENTRIES

Date Account Titles Debit Credit

Feb, 28 Salaries expense 51,000.00
Salaries payable 51,000.00

Insurance expense 2,000.00

Prepaid insurance 2,000.00

Depreciation expense - Building 9,000.00

Accumulated depreciation - Building 9,000.00

Depreciation expense - Equipment 12,000.00

Accumulated depreciation - Equipment 12,000.00

Supplies expense 14,000.00

Supplies 14,000.00

Income summary 16,000.00

Merchandise inventory 16,000.00

104,000.00 104,000.00
 Merchandise Inventory Calculation
Merchandise inventory beginning 413,000.00
Less: Merchandise inventory ending 397,000.00
Decrease in inventory (Adjustment) 16,000.00

CLOSING ENTRIES

Account Titles Debit Credit

Closing of income accounts
Sales 1,332,000.00
Sales returns and allowances 141,000.00
Sales discounts 11,840.00
Income summary 1,179,160.00
1,332,000.00 1,332,000.00

Closing of expense accounts

Income summary 846,980.00
Purchase returns and allowances 25,000.00
Purchase discounts 7,020.00
Merchandise inventory ending 397,000.00
Merchandise inventory beginning 413,000.00
Purchases 668,000.00
Transportation in 13,000.00
Salaries expense 102,000.00
Supplies expense 14,000.00
Insurance expense 2,000.00
Depreciation expense - Building 9,000.00
Depreciation expense - Equipment 12,000.00
Transportation out 4,000.00
Advertising expense 6,000.00
Interest expense 26,000.00
Miscellaneous expense 7,000.00
1,276,000.00 1,276,000.00

Closing of withdrawal account

Buenaflor capital 400,000.00
Buenaflor withdrawal 400,000.00

Closing income summary account

Income summary 332,180.00
Buenaflor capital 332,180.00
POSTINGS
Beginning Balances Journal Entries
Debit Credit Debit Credit
110 Cash 33,000.00 943,160.00 754,980.00
120 Accounts receivable 192,000.00 ### 846,000.00
130 Merchandise inventory 413,000.00 - -
140 Supplies 51,000.00 21,000.00 -
150 Prepaid insurance 48,000.00 - -
160 Land 460,000.00 - -
170 Building ### - -
175 Accumulated depreciation - Building 350,000.00 - -
180 Equipment ### - -
185 Accumulated depreciation - Equipment 630,000.00 - -
210 Accounts payable 108,000.00 259,000.00 668,000.00
220 Salaries payable - -
230 Mortgage payable ### - -
310 Buenaflor capital ### - -
320 Buenaflor withdrawal 400,000.00 -
330 Income summary - -
410 Sales - ###
420 Sales returns and allowances 141,000.00 -
430 Sales discounts 11,840.00 -
510 Purchases 668,000.00 -
520 Purchase returns and allowances - 25,000.00
530 Purchase discounts - 7,020.00
540 Transportation in 13,000.00 -
610 Salaries expense 51,000.00 -
620 Supplies expense - -
630 Insurance expense - -
640 Depreciation expense - Building - -
650 Depreciation expense - Equipment - -
660 Transportation out 4,000.00 -
670 Advertising expense 6,000.00 -
680 Interest expense 26,000.00 -
690 Miscellaneous expense 7,000.00 -
### ### ### ###
- -
 Postings Unadjusted Trial Balance Adjusting Entries Postings
Debit Credit Debit Credit Debit Credit Debit
976,160.00 754,980.00 221,180.00 - - 221,180.00
### 846,000.00 428,000.00 - - 428,000.00
413,000.00 - 413,000.00 - 16,000.00 413,000.00
72,000.00 - 72,000.00 - 14,000.00 72,000.00
48,000.00 - 48,000.00 - 2,000.00 48,000.00
460,000.00 - 460,000.00 - - 460,000.00
### - ### - - ###
- 350,000.00 350,000.00 - 9,000.00 -
### - ### - - ###
- 630,000.00 630,000.00 - 12,000.00 -
259,000.00 776,000.00 517,000.00 - - -
- - - - 51,000.00 -
- ### ### - - -
- ### ### - - -
400,000.00 - 400,000.00 - - 400,000.00
- - - 16,000.00 - 16,000.00
- ### ### - - -
141,000.00 - 141,000.00 - - 141,000.00
11,840.00 - 11,840.00 - - 11,840.00
668,000.00 - 668,000.00 - - 668,000.00
- 25,000.00 25,000.00 - - -
- 7,020.00 7,020.00 - - -
13,000.00 - 13,000.00 - - 13,000.00
51,000.00 - 51,000.00 51,000.00 - 102,000.00
- - - 14,000.00 - 14,000.00
- - - 2,000.00 - 2,000.00
- - - 9,000.00 - 9,000.00
- - - 12,000.00 - 12,000.00
4,000.00 - 4,000.00 - - 4,000.00
6,000.00 - 6,000.00 - - 6,000.00
26,000.00 - 26,000.00 - - 26,000.00
7,000.00 - 7,000.00 - - 7,000.00
### ### ### ### 104,000.00 104,000.00 ###
- - -
Postings Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit
- 221,180.00 221,180.00
- 428,000.00 428,000.00
16,000.00 397,000.00 413,000.00 397,000.00 397,000.00
14,000.00 58,000.00 58,000.00
2,000.00 46,000.00 46,000.00
- 460,000.00 460,000.00
- ### ###
359,000.00 359,000.00 359,000.00
- ### ###
642,000.00 642,000.00 642,000.00
517,000.00 517,000.00 517,000.00
51,000.00 51,000.00 51,000.00
### ### ###
### ### ###
- 400,000.00 400,000.00
- 16,000.00
### ### ###
- 141,000.00 141,000.00
- 11,840.00 11,840.00
- 668,000.00 668,000.00
25,000.00 25,000.00 25,000.00
7,020.00 7,020.00 7,020.00
- 13,000.00 13,000.00
- 102,000.00 102,000.00
- 14,000.00 14,000.00
- 2,000.00 2,000.00
- 9,000.00 9,000.00
- 12,000.00 12,000.00
- 4,000.00 4,000.00
- 6,000.00 6,000.00
- 26,000.00 26,000.00
- 7,000.00 7,000.00
### ### ###
- - ### ###
Net Income 332,180.00 332,180.00
### ### ### ###
- -
 Closing Entries Post-Closing Trial Balance
Debit Credit Debit Credit
221,180.00
428,000.00
397,000.00 413,000.00 397,000.00
58,000.00
46,000.00
460,000.00
###
359,000.00
###
642,000.00
517,000.00
51,000.00
###
400,000.00 ###
400,000.00
332,180.00
### -
- 141,000.00
- 11,840.00
- 668,000.00
25,000.00 -
7,020.00 -
- 13,000.00
- 102,000.00
- 14,000.00
- 2,000.00
- 9,000.00
- 12,000.00
- 4,000.00
- 6,000.00
- 26,000.00
- 7,000.00

-
### ### ### ###
- -

Income Summary Calculation

Income accounts 1,179,160.00
Expense accounts - 846,980.00
Adjustments 332,180.00

Capital Adjustments
Income summary 332,180.00
Withdrawal - 400,000.00
Adjustment - 67,820.00
Capital beginning balance 1,569,000.00
Adjustment - 67,820.00
Capital ending balance 1,501,180.00
 Teresita Buenaflor
Income Statement
For the month of February 28, 20xx

Sales ###
Less: Sales returns and allowances 141,000.00
Sales discounts 11,840.00 152,840.00
Net sales ###
Cost of sales
Merchandise inventory, beginning 413,000.00
Purchases 668,000.00
Add: Transportation in 13,000.00
Less: Purchase returns and allowances 25,000.00
Purchase discounts 7,020.00
Cost of goods available for sales ###
Less: Merchandise inventory, ending 397,000.00 664,980.00
Gross income 514,180.00
Less: Operating expenses
Salaries expense 102,000.00
Supplies expense 14,000.00
Insurance expense 2,000.00
Depreciation expense - Building 9,000.00
Depreciation expense - Equipment 12,000.00
Transportation out 4,000.00
Advertising expense 6,000.00
Interest expense 26,000.00
Miscellaneous expense 7,000.00 182,000.00
Net income 332,180.00
 Teresita Buenaflor
Statement of Changes in Equity
For the month of February 28, 20xx

Buenaflor capital beginning ###

Add: Net profit 332,180.00
Additional investment - 332,180.00
Balance ###
Less: Net loss -
Withdrawal 400,000.00 400,000.00
Buenaflor capital ending ###
 Teresita Buenaflor
Balance Sheet
As of February 28, 20xx

ASSETS
Current assets
Cash 221,180.00
Accounts receivable 428,000.00
Merchandise inventory 397,000.00
Supplies 58,000.00
Prepaid insurance 46,000.00 ###
Noncurrent assets
Land 460,000.00
Building 1,750,000.00
Accumulated depreciation - Building - 359,000.00
Equipment 2,310,000.00
Accumulated depreciation - Equipment - 642,000.00 ###
Total assets ###

LIABILITIES AND OWNER'S EQUITY

Current liabilities
Accounts payable 517,000.00
Salaries payable 51,000.00 568,000.00
Noncurrent liability
Mortgage payable ###
Owner's equity
Buenaflor capital ###
Total liabilities and owner's equity ###
 Teresita Buenaflor
Statement of Cash Flows
For the month of February 28, 20xx

OPERATING ACTIVITIES
Cash inflows
Collection from receivables 693,160.00
Cash sales 250,000.00 943,160.00
Cash outflows
Payment of payables 226,980.00
Payment for advertising 6,000.00
Freight cost 17,000.00
Payment for salaries 51,000.00
Purchsed supplies 21,000.00
Payment for miscellaneous 7,000.00 328,980.00
Net cash flows under operating activities 614,180.00

FINANCING ACTIVITIES
Cash inflows -
Cash outflows
Payment for interest 26,000.00
Initial withdrawal of the owner 400,000.00 426,000.00
Net cash flows under financing activities - 426,000.00

INVESTING ACTIVITIES
Cash inflows -
Cash outflows -
Net cash flows under investing activities -

Net cash flows 188,180.00

Beginning cash balance 33,000.00
Ending cash balance 221,180.00
 Date Account Titles Debit Credit
Feb, 1 Beginning cash balance 33,000.00
1 Collection from receivables 113,000.00
2 Payment of payables 62,080.00
7 Payment for advertising 6,000.00
7 Cash sales 250,000.00
8 Payment of payables 164,900.00
9 Freight cost 4,000.00
12 Collection from receivables 196,000.00
14 Payment for interest 26,000.00
15 Payment for salaries 51,000.00
18 Freight cost 4,000.00
19 Purchsed supplies 21,000.00
22 Payment for miscellaneous 7,000.00
23 Collection from receivables 384,160.00
24 Freight cost 9,000.00
28 Initial withdrawal of the owner 400,000.00
 Balance
33,000.00
146,000.00 Operating
83,920.00 Operating
77,920.00 Operating
327,920.00 Operating
163,020.00 Operating
159,020.00 Operating
355,020.00 Operating
329,020.00 Financing
278,020.00 Operating
274,020.00 Operating
253,020.00 Operating
246,020.00 Operating
630,180.00 Operating
621,180.00 Operating
221,180.00 Financing