ROSSLE ONG'S TOYLAND

TRIAL BALANCE
JUNE 30, 2021

Account Title Debit Credit

Cash on hand 75,200
Cash in bank 487,288
Accounts Receivable 112,000
Allowance for bad debts 4,000
Notes Receivable 4,800
Inventory, 7/1/20 89,500
Prepaid Store Insurance, 7/1/20 6,300
Land 250,000
Building 500,000
Acc. Dep. - Building 25,000
Office Furniture & Fixtures 15,000
Acc. Dep. - Office F&F 900
Store Furniture & Fixtures 16,000
Acc. Dep. - Store F&F 500
Accounts Payable 54,000
Philhealth Premiums Payable 100
SSS Premiums Payable 522
Pag-Ibig Premiums Payable 200
Withholding Taxes Payable 490
Unearned Commission 2,400
Notes Payable - 5 yrs. 180,000
Ong, Capital 1,067,850 (balancing figure)
Ong, Withdrawals 30,000
Sales 783,200
Sales Discount 2,880
Sales return and allowances 5,020
Interest Income 3,000
Miscellaneous Income 2,000
Gain on sale of investment 2,500
Purchases 242,000
Purchase Discount 2,000
Purchase returns and allowances 3,000
Freight In 6,000
Advertising Expense 9,000
Rent Expense 96,800
Water Expense 2,500
Representation Expense 2,000
Taxes Expense 12,000
Electricity Expense 42,400
Sales salaries Expense 60,000
Office salaries Expense 33,400
Freight Out 1,500
Communication Expense 700
Philhealth Premiums Expense 1,200
SSS Premiums Expense 6,424
Pag-Ibig Premiums Expense 2,400
Interest Expense 600
Bank Service Charge 1,750
Loss on fire 14,000
Loss on flood 3,000

TOTAL 2,131,662 2,131,662

a. Jun-30 Bad debts Expense 1,600 Solution:
Allowance for bad debts 1,600 a. Accounts Receivable
# Multiply by: Rate
Required Allow. Balance
Allow. Balance (current)
Bad debts Expense

b. Accrued Interest Income 26.66 b. Interest (Note 1)

Interest Income 26.66
#
Interest (Note 2)

c. Insurance Expense 4,200 c. Insurance period

Prepaid Store Insurance 4,200 Expired Insurance
# Unexpired Insurance

Insurance Expense = 6,300 x 12/18 = 4,200

d. Depreciation Expense - Store F&F 2,400 d. Store F&F (1)

Acc. Dep. - Store F&F 2,400 Cost
# Divided by: Life
Annual Dep.

Store F&F (2)

Cost
Divided by: Life
Annual Dep.

Depreciation Exp.
 Total Depreciation = 2,000 + 400 = 2,400

e. Depreciation Expense - Office F&F 3,000 e. Office F&F

Acc. Dep. - Office F&F 3,000 Cost
# Rate
Annual Dep.

f. Depreciation Expense - Building 67,500 f. Building

Acc. Dep. - Building 67,500 Cost
# Salvage Value
Depreciable Amount
Rate
Annual Dep.

g. Sales Salaries Expense 550

Accrued Sales Salaries Exp. 550
#

h. Prepaid Advertising 3,000 (expense method) h. Advertising Expense

Advertising Expense 3,000 Unexpired portion
# Prepaid Advertising

i. Interest Expense 24,300 i. Accrued Interest Expense = 180,000 x 18%

Accrued Interest Expense 24,300 (Oct 1 - June 30) = 9 months
#

j. Unearned Commission 800 (liability method) j. Unearned Commission

Commission Income 800 Earned portion
# Commission Income

k. Income Summary 89,500 k. Inventory beg.

Inventory Beg. 89,500 Unsold portion
 # Inventory end

Inventory End. 67,125

Income Summary 67,125
#
 112,000
5%
5,600
-4,000
1,600

4,000 x 10% x 20/360

22.22

800 x 8% x 25/360
4.44

22.22 + 4.44 = 26.66

24 months (2 yrs)
6 months (Jan-Jul)
18 months

nse = 6,300 x 12/18 = 4,200

10,000
5 yrs
2,000

6,000
5 yrs
1,200
x 4/12 (Mar1-June 30)
400
on = 2,000 + 400 = 2,400

15,000
x 20%
3,000

500,000
-50,000
450,000
x 15%
67,500

9,000 (for 3 months)

x 1/3
3,000

t Expense = 180,000 x 18% x 9/12 = 24,300

1 - June 30) = 9 months

2,400
x 1/3
800

89,500
x 3/4
67,125
 ROSSLE ONG'S TOYLAND
WORKSHEET
JUNE 30, 2021
Account Title UNADJUSTED TB ADJUSTMENTS ADJUSTED TB INCOME STATEMENT
Dr. Cr. Dr. Cr. Dr. Cr. Dr.
Cash on Hand 75,200 75,200
Cash in Bank 487,288 487,288
Accounts Receivable 112,000 112,000
Allowance for bad debts 4,000 1,600 5,600
Notes Receivable 4,800 4,800
Inventory - 7/1/20 89,500 89,500 89,500
Prepaid Store Insurance - 7/1/20 6,300 4,200 2,100
Land 250,000 250,000
Building 500,000 500,000
Acc. Dep.-Building 25,000 67,500 92,500
Office Furniture & Fixtures 15,000 15,000
Acc. Dep.-Office F&F 900 3,000 3,900
Store Furniture & Fixtures 16,000 16,000
Acc. Dep.-Store F&F 500 2,400 2,900
Accounts Payable 54,000 54,000
Philhealth Premiums Payable 100 100
SSS Premiums Payable 522 522
Pag-Ibig Premiums Payable 200 200
Withholding Taxes Payable 490 490
Unearned Commission 2,400 800 1,600
Notes Payable - 5 yrs 180,000 180,000
Ong, Capital 1,067,850 1,067,850
Ong, Withdrawals 30,000 30,000
Sales 783,200 783,200
Sales Discount 2,880 2,880 2,880
Sales Return and Allowances 5,020 5,020 5,020
Interest Income 3,000 26.66 3,026.66
Miscellaneous Income 2,000 2,000
Gain on sale of investment 2,500 2,500
Purchases 242,000 242,000 242,000
Purchase Discount 2,000 2,000
Purchase Return and Allowance 3,000 3,000
Freight In 6,000 6,000 6,000
Advertising Expense 9,000 3,000 6,000 6,000
Rent Expense 96,800 96,800 96,800
Water Expense 2,500 2,500 2,500
Representation Expense 2,000 2,000 2,000
Taxes Expense 12,000 12,000 12,000
Electricity Expense 42,400 42,400 42,400
Sales Salaries Expense 60,000 550 60,550 60,550
Office Salaries Expense 33,400 33,400 33,400
Freight Out 1,500 1,500 1,500
Communication Expense 700 700 700
Philhealth Premiums Expense 1,200 1,200 1,200
SSS Premiums Expense 6,424 6,424 6,424
Pag-Ibig Premiums Expense 2,400 2,400 2,400
Interest Expense 600 24,300 24,900 24,900
Bank Service Charge 1,750 1,750 1,750
Loss on Fire 14,000 14,000 14,000
Loss on Flood 3,000 3,000 3,000

TOTAL 2,131,662 2,131,662

Adjustments:
Bad debts Expense 1,600 1,600 1,600
Accrued Interest Income 26.66 26.66
Insurance Expense 4,200 4,200 4,200
Dep. Exp - Store F&F 2,400 2,400 2,400
Dep. Exp - Office F&F 3,000 3,000 3,000
Dep. Exp - Building 67,500 67,500 67,500
Accrued Sales Salaries Exp 550 550
Prepaid Advertising 3,000 3,000
Accrued Interest Expense 24,300 24,300
Commission Income 800 800

TOTAL 2,131,662 2,131,662 107,376.66 107,376.66 2,231,038.66 2,231,038.66 735,624.00

Net Income 128,027.66
GRAND TOTAL 863,651.66
INCOME STATEMENT BALANCE SHEET
Cr. Dr. Cr.
75,200
487,288
112,000
5,600
4,800
67,125 67,125
2,100
250,000
500,000
92,500
15,000
3,900
16,000
2,900
54,000
100
522
200
490
1,600
180,000
1,067,850
30,000
783,200

3,026.66
2,000
2,500

2,000
3,000

26.66
 550
3,000
24,300
800

863,651.66 1,562,539.66 1,434,512.00

128,027.66
863,651.66 1,562,539.66 1,562,539.66