Erik Torsten Hardwares

Worksheet
for the month ended November 30, 202
UNADJUSTED
TRIAL BALANCE ADJUSTMENTS
ACCOUNT TITLES DR CR DR
Cash 455,263
Accounts Receivable 75,000
Allowance for Doubtful Accounts 1,500
Commissions Receivable 8000
Merchandise Inventory 150,000 130,000
Store Supplies 17,000
Prepaid Insurance Expense 90,000
Equipment 230,000
Accumulated Depreciation - Equipment 13,800
Furniture 180,000
Accumulated Depreciation - Furniture 15,000
Accounts Payable 46,500
Notes Payable 150,000
Interest Payable
Utilities Payable
Unearned Sales Revenue 53,600 23,600
Torsten, Capital 837,200
Torsten, Drawing 16,000
Income Summary 150,000

Sales 332,100
Sales Returns and Allowances 6,000
Sales Discounts 2,122
Commissions Income
Purchases 147,000
Freight-In 2,000
Purchase Returns and Allowances 7,500
Purchase Discounts 2,985
Cleaning Services Expense 15,000
Freight-Out 1,800
Insurance Expense 15,000
Interest Expense 225
Rent Expense 30,000
Salaries Expense 43,000
Store Supplies Expense 12,000
Utilities Expense 23,000
Depreciation Expense – Equipment 3,450
Depreciation Expense – Furniture 3,750
Doubtful Accounts Expense 750

1,460,185 1,460,185 369,775

Net Income

-
 Erik Torsten Hardwares
Worksheet
he month ended November 30, 2022
ADJUSTED STATEMENT OF STATEMENT OF
ADJUSTMENTS TRIAL BALANCE PROFIT OR LOSS FINANCIAL POSITION
CR DR CR DR CR DR CR
455,263 455,263
75,000 75,000
750 2,250 2,250
8,000 8,000
150,000 130,000 130,000
12,000 5,000 5,000
15,000 75,000 75,000
230,000 230,000
3,450 17,250 17,250
180,000 180,000
3,750 18,750 18,750
46,500 46,500
150,000 150,000
225 225 225
23,000 0 23,000 0 23,000
30,000 30,000
837,200 837,200
16,000 16,000
130,000 150,000 130,000 150000 130,000

23,600 355,700 355,700

6,000 6,000
2,122 2,122
8,000 8,000 8000
147,000 147,000
2,000 2,000
7,500 7,500
2,985 2,985
15,000 15,000
1,800 1,800
15,000 15000
225 225
30,000 30,000
43,000 43,000
12,000 12000
 23,000 23000
3,450 3450
3,750 3750
750 750

369,775 1,629,360 1,629,360 455,097 504,185 1,174,263 1,125,175

49,088 49,088
504,185 504,185 1,174,263 1,174,263
 Erik Torsten Hardwares
Statement of Profit and Loss
for the month ended November 30, 2022

Notes ₱ ₱
Net Sales Revenue 1 347,578
Cost of Sales 2 -158,515
Gross Profit 189,063
Other Income 3 8,000
Total Income 197,063
Expenses
Distribution Costs 4 13,800
Administrative Expenses 5 134,175 -147,975
Net Income 49,088
 Erik Torsten Hardwares
Statement of Owners Equity
for the month ended November 30, 2022
Erik Torsten, Capital Nov 1, 2022 837,200
Add: Net Income 49,088
886,288
Less: Erik Torsten, Drawing -16,000
Erik Torsten, Capital Nov 30, 2022 870,288
 Erik Torsten Hardwares
Statement of Financial Position
as of November 30, 2022
₱ ₱
Assets Notes
Current Assets
Cash 455,263
Trade and other receivables 6 80,750
Merchandise inventory, End 130,000
Prepaid Expenses 7 80,000 746,013

Non-current Assets
Property, Plant, and Equipment 8 374,000
Total Assets 1,120,013

Liabilities and Owner's Equity

Current Liabilities
Trade and Other Payable 9 219,725
Unearned Service Revenue 30,000
Total Liabilities 249,725

Owner's Equity
Elizabeth Victoria, Capital 870,288
Total Liabilities and Owner's Equity 1,120,013
 Erik Torsten Hardwares
Computational Notes to Financial Statements
as of November 30, 2022
Note 1 - Net Sales Revenue
Gross Sales 355,700
Less: Sales Returns & Allowances 6,000
Sales Discounts 2,122
Net Sales Revenue 347,578

Note 2 - Cost of Sales

Merchandise Inventory, Nov 1 150,000
Add:Net Cost of Purchases
Purchases 147,000
Less: Purchase Discounts 2,985
Purchase Returns & Allowances 7,500
Net Purchases 136,515
Add: Freight- In 2,000
Cost of Goods Available for Sale 138,515 288,515
Less: Merchandise, Nov 30 130,000
Cost of Sales 158,515

Note - 3 Other Income

Commission Income 8,000
Total Other Income 8,000

Note - 4 Distribution Costs

Store Supplies Expense 12,000
Freight out 1,800
Total Distribution Costs 13,800

Note 5 - Administrative Expenses

Cleaning Services Expense 15,000
Insurance Expense 15,000
Interest Expense 225
Rent Expense 30,000
Salaries Expense 43,000
Utilities Expense 23,000
Depreciation Expense – Equipment 3,450
Depreciation Expense – Furniture 3,750
Doubtful Accounts Expense 750
Total Administrative Expense 134,175

Note 6 - Trade and Other Receivables

Accounts Receivable 75,000
Less: Allowance for Doubtful Accounts 2,250
Net Realizable Value 72,750
Commissions Receivable 8,000
Total Trade and Other Receivables 80,750

Note 7 - Prepaid Expenses

Store supplies 5,000
Prepaid Insurance Expense 75,000
80,000

Note 8 - Property, Plant, and Equipment

Equipment 230,000
Less: Accumulated depreciation -- Equipment 17,250 212,750
Furniture 180,000
Accumulated Depreciation - Furniture 18,750 161,250
Total Property, Plant, and Equipment 374,000

Note 9 - Trade & Other Payables

Accounts Payable 46,500
Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Trade trade and other payables 219,725
 Erik Torsten Hardwares
Post Closing Trial Balance
for the month ended November 30, 2022
Accounts DR CR
Cash 455,263
Accounts Receivable 75,000
Allowance for Doubtful Accounts 2,250
Commissions Receivable 8,000
Merchandise Inventory 130,000
Store Supplies 5,000
Prepaid Insurance Expense 75,000
Equipment 230,000
Accumulated Depreciation - Equipment 17,250
Furniture 180,000
Accumulated Depreciation - Furniture 18,750
Accounts Payable 46,500
Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Unearned Sales Revenue 30,000
Torsten, Capital 870,288

Total 1,158,263 1,158,263

 Page 1
DATE DR CR
2022

Nov 30 Insurance Expense 15,000

Prepaid Insurance
Insurance Expense
Expense for the month of 15,000
November

30 Interest Expense 225

Interest Payable
Interest for the month of November 225
from the November 21 A1 Loan

30 Unearned Sales Revenue 23,600

SalesReceived Invoice #231 from 23,600
Mediaware, Inc.

30 Commissions Receivable 8,000

Comissions Income for goods sold, but
Faith Company 8,000
still uncollected at month-end

30 Utilities Expense 23,000

Utilities Payable
Received utilities bill for the month 23,000
of November

30 Store Supplies Expense 12,000

StoreStore
Supplies
supplies consumed during the 12,000
period

30 Depreciation Expense – Equipment 3,450

Accumulated Depreciation
Depreciation - Equipment
of equipment for the 3,450
month of November
Page 2
DATE DR CR
Nov 30 Depreciation Expense – Furniture 3,750
Accumulated Depreciation
Depreciation - Furniture
of furniture for the 3,750
month of November

30 Doubtful Accounts Expense 750

Allowance for Doubtful
uncollectible Accounts
accounts for the 750
month of November
30 Income Summary 150,000
Merchandise Inventory
To transfer beginning inventory to 150,000
income summary

30 Merchandise Inventory 130,000

Income Summary 130,000
To record ending inventory
 Closing Entries
Nov 30 Sales 355,700
Commissions Income 8,000
Purchase Returns and Allowances 7,500
Purchase Discounts 2,985
Income Summary 374,185
To close the revenue accounts

Nov 30 Income Summary 455,097

Sales Returns and Allowances 6,000
Sales Discounts 2,122
Purchases 147,000
Freight-In 2,000
Cleaning Services Expense 15,000
Freight-Out 1,800
Insurance Expense 15,000
Interest Expense 225
Rent Expense 30,000
Salaries Expense 43,000
Store Supplies Expense 12,000
Utilities Expense 23,000
Depreciation Expense – Equipment 3,450
Depreciation Expense – Furniture 3,750
Doubtful Accounts Expense 750
Merchandise Inventory 150,000
Doubtful Accounts Expense 750
Merchandise Inventory 150,000
To close the expenses accounts

Nov 30 Income Summary 100,912

Torsten, Capital 100,912
To close the income summary account

Nov 30 Torsten, Capital 16,000

Torsten, Capital 16,000
To close the drawings account
 Cash
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Balance 455,263

Accounts Receivable
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Balance 75,000

Allowance for Doubtful Accounts

DATE DESCRIPTION DR DATE DESCRIPTION CR
01-Nov Accounts
Balance 1,500
30-Nov Expense 750

Commissions Receivable
DATE DESCRIPTION
Commissions DR DATE DESCRIPTION CR
30-Nov Income 8,000

Merchandise Inventory
DATE DESCRIPTION DR DATE DESCRIPTION
Income CR
01-Nov Balance
Income 150,000 30-Nov Summary 150,000
30-Nov Summary 130,000

Store Supplies
DATE DESCRIPTION DR DATE DESCRIPTION
Store Supplies CR
30-Nov Balance 17,000 30-Nov Expense 12,000

Prepaid Insurance Expense

DATE DESCRIPTION DR DATE DESCRIPTION
Insurance CR
01-Nov Cash 90,000 30-Nov Expense 15,000

Equipment
DATE DESCRIPTION DR DATE DESCRIPTION CR
01-Nov Balance 230,000
 Accumulated Depreciation - Equipment
DATE DESCRIPTION DR DATE DESCRIPTION CR
01-Nov Expense
Balance – 13,800
30-Nov Equipment 3,450

Furniture
DATE DESCRIPTION DR DATE DESCRIPTION CR
01-Nov Balance 180,000

Accumulated Depreciation - Furniture

DATE DESCRIPTION DR DATE DESCRIPTION CR
01-Nov Expense
Balance – 15,000
30-Nov Furniture 3,750
 Accounts Payable
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Balance 46,500

Notes Payable
DATE DESCRIPTION DR DATE DESCRIPTION CR
21-Nov Cash 150,000

Interest Payable
DATE DESCRIPTION DR DATE DESCRIPTION
Interest CR
30-Nov Expense 225

Utilities Payable
DATE DESCRIPTION DR DATE DESCRIPTION
Utilities CR
30-Nov Expense 23,000

Unearned Sales Revenue

DATE DESCRIPTION
Unearned DR DATE DESCRIPTION CR
30-Nov Sales Revenue 23,600 22-Nov Cash 53,600
 Torsten, Capital
DATE DESCRIPTION
Erik Torsten, DR DATE DESCRIPTION CR
30-Nov Drawing 16,000 01-Nov Income
Balance 837,200
30-Nov Summary 49,088
16,000 886,288
870,288

Torsten, Drawing
DATE DESCRIPTION DR DATE DESCRIPTION
Erik Torsten, CR
30-Nov Balance 16,000 30-Nov Capital 16,000

Income Summary
DATE DESCRIPTION
and DR DATE DESCRIPTION CR
30-Nov Allowances
Sales 6,000 30-Nov Commissions
Sales 355,700
30-Nov Discounts 2,122 30-Nov Income
Returns and 8,000
30-Nov Purchases 147,000 30-Nov Allowances
Purchase 7,500
30-Nov Freight-In
Services 2,000 30-Nov Discounts
Merchandise 2,985
30-Nov Expense 15,000 30-Nov Inventory 130,000
30-Nov Freight-Out
Insurance 1,800
30-Nov Expense
Interest 15,000
30-Nov Expense 225
30-Nov Rent Expense
Salaries 30,000
30-Nov Expense
Store Supplies 43,000
30-Nov Expense
Utilities 12,000
30-Nov Expense
Expense – 23,000
30-Nov Equipment
Expense – 3,450
30-Nov Furniture
Accounts 3,750
30-Nov Expense
Merchandise 750
30-Nov Inventory 150,000
Erik Torsten, 455,097 Balance / Net 504,185
30-Nov Capital 49,088 30-Nov Income 49,088
 Sales
DATE DESCRIPTION
Income DR DATE DESCRIPTION CR
30-Nov Summary 355,700 30-Nov Unearned
Total 332,100
30-Nov Sales Revenue 23,600
355,700 355,700

Sales Returns and Allowances

DATE DESCRIPTION DR DATE DESCRIPTION
and CR
30-Nov Total 6,000 30-Nov Allowances 6,000

Sales Discount
DATE DESCRIPTION DR DATE DESCRIPTION
Sales CR
30-Nov Total 2,122 30-Nov Discounts 2,122

Commissions Income
DATE DESCRIPTION
Income DR DATE DESCRIPTION CR
30-Nov Summary 8,000 30-Nov Total 8,000

Purchases
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Total 147,000 30-Nov Purchases 147,000

Freight In
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Total 2,000 30-Nov Freight-In 2,000

Purchase Returns and Allowances

DATE DESCRIPTION
Returns and DR DATE DESCRIPTION CR
30-Nov Allowances 7,500 30-Nov Total 7,500

Purchase Discounts
DATE DESCRIPTION
Purchase DR DATE DESCRIPTION CR
30-Nov Discounts 2,985 30-Nov Total 2,985
 Cleaning Services Expense
DATE DESCRIPTION DR DATE DESCRIPTION
Services CR
30-Nov Total 15,000 30-Nov Expense 15,000

Freight-Out
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Total 1,800 30-Nov Freight-Out 1,800

Insurance Expense
DATE DESCRIPTION
Insurance DR DATE DESCRIPTION
Income CR
30-Nov Expense 15,000 30-Nov Summary 15,000

Interest Expense
DATE DESCRIPTION
Interest DR DATE DESCRIPTION
Income CR
30-Nov Payable 225 30-Nov Summary 225

Rent Expense
DATE DESCRIPTION DR DATE DESCRIPTION
Income CR
30-Nov Total 30,000 30-Nov Summary 30,000

Salaries Expense
DATE DESCRIPTION DR DATE DESCRIPTION
Income CR
30-Nov Total 43,000 30-Nov Summary 43,000

Store Supplies Expense

DATE DESCRIPTION DR DATE DESCRIPTION
Income CR
30-Nov Store Supplies 12,000 30-Nov Summary 12,000

Utilities Expense
DATE DESCRIPTION
Utilities DR DATE DESCRIPTION
Income CR
30-Nov Payable 23,000 30-Nov Summary 23,000

Depreciation Expense – Equipment

DATE DESCRIPTION-
Depreciation DR DATE DESCRIPTION
Income CR
30-Nov Equipment 3,450 30-Nov Summary 3,450

Depreciation Expense – Furniture

DATE DESCRIPTION-
Depreciation DR DATE DESCRIPTION
Income CR
30-Nov Furniture 3,750 30-Nov Summary 3,750
 Doubtful Accounts Expense
DATE DESCRIPTION
Doubtful DR DATE DESCRIPTION
Income CR
30-Nov Accounts 750 30-Nov Summary 750
 Statement of
Profit or Loss
ACCOUNT TITLES Dr Cr
Sales 355,700
Sales Returns and Allowances 6,000
Sales Discounts 2,122
Commissions Income 8000
Purchases 147,000
Freight-In 2,000
Purchase Returns and Allowances 7,500
Purchase Discounts 2,985
Cleaning Services Expense 15,000
Freight-Out 1,800
Insurance Expense 15000
Interest Expense 225
Rent Expense 30,000
Salaries Expense 43,000
Store Supplies Expense 12000
Utilities Expense 23000
Depreciation Expense – Equipment 3450
Depreciation Expense – Furniture 3750
Doubtful Accounts Expense 750