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Excel Merchandising Company

The trial balance provided is for Excel Merchandising Company for the year ended December 31, 2022. It requires adjustments for inventory count differences, depreciation, prepaid expenses, accrued expenses, unearned revenue and bad debts. The adjustments are to be recorded in a worksheet to prepare adjusted financial statements, closing entries and a post-closing trial balance.

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273 views

Excel Merchandising Company

The trial balance provided is for Excel Merchandising Company for the year ended December 31, 2022. It requires adjustments for inventory count differences, depreciation, prepaid expenses, accrued expenses, unearned revenue and bad debts. The adjustments are to be recorded in a worksheet to prepare adjusted financial statements, closing entries and a post-closing trial balance.

Uploaded by

golemwitch01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Excel Merchandising Company

Trial Balance
For the year ended December 31, 2022

Account title Debit Credit


Cash 15,846
Accounts receivable 22,431
Allowance for bad debts 1,000

Merchandise inventory 60,869


Store supplies 835
Office equipment 18,512
Accumulated depreciation-office 7,200
equipment
Store furniture and fixtures 4,800
Accumulated deprecition-store 960
furniture and fixtures
Accounts Payable 4,000
Notes Payable 12,000
SSS Premiums Payable 411
Withholding taxes payable 350
Philhealth Premiums Payable 650
Luz, Capital 68,326
Luz, Drawing 3,750
Sales 325,250
Sales returns and allowances 4,792
Purchases 259,237
Purchase returns and allowances 6,670
Purchase discount 3,867
Freight in 12,312
Rent income 1,500
Salaries expense 27,650
Insurance expense 764
Interest expense 386
TOTAL P 432,184 P432,184

The data for adjustments are as follows:


1. A physical count of goods on hand as at December 31, 2022 disclosed P51,338 worth of unsold
merchandise.
2. One-fifth of the office supplies are still on hand as of December 31.
3. The insurance expense represents advance payment for one year insurance starting October 1, 2022.
4. Accrued salaries as of December 31 is 628.
5. The office equipment purchased on January 1, 2020 has a scrap value of 512 and estimated useful life of 5
years. The company uses straight-line deprecation method. Depreciation for the current year has not
been yet taken up.
6. Store furniture and fixtures is depreciated at 10% per annum.
7. The notes payable is for 30 days at 12% , dated December 11, of the current year.
8. Of the rent income per trial balance , one third has not yet been earned.
9. A review of the accounts receivable disclosed that there should be a balance sheet provision for
uncollectble accounts of 1,800
10. Commissions earned in the amount of 200 has not yet been collected.

Required:
1. Worksheet as a basis for adjustments, financial statements and closing entries, post closing trial
balance and reversing entries

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