Erik Torsten Hardwares

Worksheet
for the month ended November 30, 2022

UNADJUSTED ADJUSTED STATEMENT OF

ACCOUNT NAMES TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE PROFIT OR LOSS
DR CR DR CR DR CR DR CR
Cash 455,263 455,263
Accounts Receivable 75,000 75,000
Allowance for Doubtful Accounts 1,500 750 2,250
Commissions Receivable 8,000 8,000
Merchandise Inventory 150,000 130,000 150,000 130,000
Store Supplies 17,000 12,000 5,000
Prepaid Insurance Expense 90,000 15,000 75,000
Equipment 230,000 230,000
Accumulated Depreciation - Equipment 13,800 3,450 17,250
Furniture 180,000 180,000
Accumulated Depreciation - Furniture 15,000 3,750 18,750
Accounts Payable 46,500 46,500
Notes Payable 150,000 150,000
Interest Payable 225 225
Utilities Payable 23,000 23,000
Unearned Sales Revenue 53,600 23,600 30,000
Torsten, Capital 837,200 837,200
Torsten, Drawing 16,000 16,000
Income Summary 150,000 130,000 150,000 130,000 150,000 130,000
Sales 332,100 23,600 355,700 355,700
Sales Returns and Allowances 6,000 6,000 6,000
Sales Discounts 2,122 2,122 2,122
Commissions Income 8,000 8,000 8,000
Purchases 147,000 147,000 147,000
Freight-In 2,000 2,000 2,000
Purchase Returns and Allowances 7,500 7,500 7,500
Purchase Discounts 2,985 2,985 2,985
Cleaning Services Expense 15,000 15,000 15,000
Freight-Out 1,800 1,800 1,800
Insurance Expense 15,000 15,000 15,000
Interest Expense 225 225 225
Rent Expense 30,000 30,000 30,000
Salaries Expense 43,000 43,000 43,000
Store Supplies Expense 12,000 12,000 12,000
Utilities Expense 23,000 23,000 23,000
Depreciation Expense – Equipment 3,450 3,450 3,450
Depreciation Expense – Furniture 3,750 3,750 3,750
Doubtful Accounts Expense 750 750 750
TOTAL 1,460,185 1,460,185 369,775 369,775 1,629,360 1,629,360 455,097 504,185
Net Income - 49,088
504,185
 STATEMENT OF
FINANCIAL POSITION
DR CR
455,263
75,000
2,250
8,000
130,000
5,000
75,000
230,000
- 17,250
180,000
18,750
46,500
150,000
225
23,000
30,000
837,200
16,000 -
1,174,263 1,125,175
49,088
1,174,263
 Erik Torsten Hardwares
Statement of Profit or Loss
For the month ended November 30, 2022
Notes Php Php
Nets Sales 347,578
Cost of Sales -158,515
Gross Profit 189,063
Other Income 8,000
Total Income 197,063
Expenses
Distribution Costs 1,800
Administrative Expenses 145,950
Finance Cost (Interest Expense) 225 -147,975
Net Income 49,088
 Erik Torsten Hardwares
Statement of Owner's Equity
for the month ended November 30,2022
Php
Erik Torsten, Capital - November 1, 2022 837,200
Net income 49,088
886,288
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
Notes Php Php
ASSETS
Current Assets
Cash 455,263
Trade and Other Receivables 80,750
Merchandise Inventory 130,000
Prepaid Expenses 80,000 746,013

Non-current Assets
Property, Plant and Equipment 374,000
TOTAL ASSETS 1,120,013

LIABILITIES & EQUITY

Current Liabilities
Trade and other payables 219,725
Uneraned Sales Revenue 30,000 249,725

Total Liabilities 249,725

Equity
Erik Torsten, Capital 870,288
TOTAL LIABILITIES & EQUITY 1,120,013
 Erik Torsten Hardwares
Post-Closing Trial Balance
December 1,2022

Account Title Debit Credit

Cash 0
Accounts Receivable 75,000
Allowance of Doubtful Accounts 2,250
Commision Receivable 8,000
Mechandise Inventory 130,000
Store Supplies 5,000
Prepaid Insurance Expense 75,000
Equipment 230,000
Accumulated Depreciation - Equipment 17,250
Furniture 3,750
Accumulated Depreciasion - Furniture 18,750
Accounts Payable 46,500
Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Unearned Sales Revenue 0
Torsten, Capital Erik Torsten, Capital - Nov 30,2022
TOTAL 526,750 257,975
ADJUSTING ENTRIES
DATE DESCRIPTION DR
Nov 30, 2022 Insurance Expense 15,000
Prepaid Insurance Expense
To adjust 1 month of expired insurance.

30 Interest Expense 225

Interest Payable
To adjust 9 days of accrued interest

30 Unearned Sales Revenue 23,600

Sales
To reflect sales on November 30.

30 Commissions Receivable 8,000

Commissions Income
To adjust for accrued income.

30 Utilities Expense 23,000

Utilities Payable
To adjust for accrued utilities expense.

30 Store Supplies Expense 12,000

Store Supplies
To adjust supplies expense for the month of November.

30 Depreciation Expense - Equipment 3,450

Accumulated Depreciation - Equipment
To adjust for accumulated depreciation of equipment.

30 Depreciation Expense - Furnitures 3,750

Accumulated Depreciation - Furnitures
To adjust for accumulated depreciation of furnitures.

30 Doubtful Accounts Expense 750

Allowance for Doubtful Accounts
 CLOSING ENTRIES
CR DATE
Nov 30,2022
15,000

225

30

23,600

8,000

23,000

12,000

3,450

30

3,750

30

750
SING ENTRIES
DESCRIPTION
Sales
Comissions Income
Purchase Discounts
Purchase Returns and Allowances
Income Summary
To close nominal accounts with credits balances to income summary

Income Summary
Sales Returns and Allowances
Sales Discounts
Purchases
Freight-In
Cleaning Services Expense
Freight Out
Insurance Expense
Interest Expense
Rent Expense
Salaries Expense
Store Supplies Expense
Utilities Expense
Depreciation Expense - Equipment
Depreciation Expense - Furniture
Doubtful Accounts Expense
Merchandise Inventory, Beginning

To close nominal accounts with debit balances and merchandise inventory beginning to income summary

Income Summary
Torsten, Capital
To close income summary to owner's capital

Torsten, Capital
Torsten, Drawing
To close owner's drawing to owner's capital
 REVERSING ENTRIES
DR CR DATE DESCRIPTION DR
355,700 Dec 1, 2022 Interest Payable 225
8,000 Interest Expense
2,985 Reversal of Accrued Expense
7,500
374,185 1 Commisions Income 8,000
Commisions Receivable
Reversal of Accrued Income
483,897
6,000 1 Utilities Payable 23,000
2,122 Utilities Expense
147,000 Reversal of Accrued Expense
2,000
15,000
1,800
15,000
225
30,000
43,000
12,000
23,000
17,250
18,750
750
150,000

20,288
20,288

16,000
16,000
CR

225

8,000

23,000
 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
1-Nov Balance 1,500
30-Nov Adjusting 750

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

Merchandise Inventory
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 150,000
30-Nov Adjusting 130,000

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

Prepaid Insurance Expense

DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Cash 90,000 30-Nov Adjusting 15,000

Equipment
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 230,000
 Accumulated Depreciation - Equipment
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 13,800
30-Nov Adjusting 3,450

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

Accumulated Depreciation - Furniture

DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 15,000
30-Nov Adjusting 3,750
 Accounts Payable
DATE DESCRIPTION DR DATE DESCRIPTION
30-Nov Balance

Notes Payable
DATE DESCRIPTION DR DATE DESCRIPTION
21-Nov Cash

Interest Payable
DATE DESCRIPTION DR DATE DESCRIPTION
30-Nov Adjusting

Utilities Payable
DATE DESCRIPTION DR DATE DESCRIPTION
30-Nov Adjusting

Unearned Sales Revenue

DATE DESCRIPTION DR DATE DESCRIPTION
30-Nov Adjusting 23,600 22-Nov Cash
 Torsten, Capital
CR DATE DESCRIPTION DR DATE
46,500 1-Nov

Torsten, Drawing
CR DATE DESCRIPTION DR DATE
150,000 30-Nov Balance 16,000

Income Summary
DATE DESCRIPTION DR DATE
CR 30-Nov
225

CR
23,000

CR
53,600
tal Sales
DESCRIPTION CR DATE DESCRIPTION DR
Balance 837,200

ing
DESCRIPTION CR Sales Returns and Allowances
DATE DESCRIPTION DR
30-Nov Total 6,000
ary
DESCRIPTION CR Sales Discount
Adjusting 130,000 DATE DESCRIPTION DR
30-Nov Total 2,122

Commissions Income
DATE DESCRIPTION DR

Purchases
DATE DESCRIPTION DR
30-Nov Total 147,000

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

Purchase Returns and Allowances

DATE DESCRIPTION DR

Purchase Discounts
DATE DESCRIPTION DR
 Sales Cleaning Ser
DATE DESCRIPTION CR DATE DESCRIPTION
30-Nov Total 332,100 30-Nov Total
30-Nov Adjusting 23,600
Freigh
DATE DESCRIPTION
ales Returns and Allowances 30-Nov Total
DATE DESCRIPTION CR
Insuranc
DATE DESCRIPTION
Sales Discount 30-Nov Adjusting
DATE DESCRIPTION CR
Interest
DATE DESCRIPTION
Commissions Income 30-Nov Adjusting
DATE DESCRIPTION CR
30-Nov Adjusting 8,000
Rent E
DATE DESCRIPTION
Purchases 30-Nov Total
DATE DESCRIPTION CR
Salaries
DATE DESCRIPTION
Freight In 30-Nov Total
DATE DESCRIPTION CR
Store Supp
DATE DESCRIPTION
chase Returns and Allowances 30-Nov Adjusting
DATE DESCRIPTION CR
30-Nov Total 7,500 Utilities
DATE DESCRIPTION
Purchase Discounts 30-Nov Adjusting
DATE DESCRIPTION CR
30-Nov Total 2,985
Depreciation Exp
DATE DESCRIPTION
30-Nov Adjusting

Depreciation Exp
DATE DESCRIPTION
30-Nov Adjusting

Doubtful Acc
DATE DESCRIPTION
30-Nov Adjusting
 Cleaning Services Expense
DR DATE DESCRIPTION CR
15,000

Freight-Out
DR DATE DESCRIPTION CR
1,800

Insurance Expense
DR DATE DESCRIPTION CR
15,000

Interest Expense
DR DATE DESCRIPTION CR
225

Rent Expense
DR DATE DESCRIPTION CR
30,000

Salaries Expense
DR DATE DESCRIPTION CR
43,000

Store Supplies Expense

DR DATE DESCRIPTION CR
12,000

Utilities Expense
DR DATE DESCRIPTION CR
23,000

Depreciation Expense – Equipment

DR DATE DESCRIPTION CR
3,450

Depreciation Expense – Furniture

DR DATE DESCRIPTION CR
3,750

Doubtful Accounts Expense

DR DATE DESCRIPTION CR
750
 Notes to Financial Statements
Php Php Php
1 Sales 355,700
Sales Returns and Allowances 6,000
Sales Discounts 2,122 -8,122
Net Sales 347,578

2 Merchandise Inventory, Opening 150,000

Net cost of purchases
Purchases 147,000
Purchase returns and allowances 7,500
Purchase Discounts 2,985 -10,485
Net Purchases 136,515
Freight In 2,000 138,515
Total Goods Available for Sale 288,515
Merchandise Inventory, Closing 130,000
Cost of sales 158,515

3 Commission Income 8,000

Other Income 8,000

4 Freight Out 1,800

Distribution Costs 1,800

5 Cleaning Services Expense 15,000

Insurance Expense 15,000
Rent Expense 30,000
Salaries Expense 43,000
Utilities Expense 23,000
Store SuppliesExpense
Depreciation Expense- Equipment 12,000
3,450
Deprciation Expense - Furniture 3,750
 Doubtful Accounts Expense 750
Administrative Costs 145,950

Interest Expense 225

Finance Costs 225

6 Accounts Receivable 75,000

Allowance for Doubtful Acccounts -2,250 72,750
Commissions Receivable 8,000
Trade and Other Receivables 80,750

7 Prepaid Insurance Expense 75,000

Supplies 5,000
Prepaid Expenses 80,000

8 Equipment 230,000
Accumulated Depreciation, Equipment -17,250
Furniture 180,000
Accumulated Depreciation - Furniture -18,750
Carrying Amount 374,000

9 Accounts Payable 46,500

Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Trade and Other Payables 219,725