a.

Adjusting Entries

FAN DE SOL
GENERAL JOURNAL
ADJUSTING ENTRIES
Date
Account Titles and Explanation P.R. Debit
YR-2021
1.. Rent Receivable 60,000
Rent Income
To record the earned rent income

2 Office Supplies Expense 5,500

Office Supplies
To record the office supplies used

3 Store Salaries Expense 10,000

Salaries Payable
To record the salaries incurred

4 Insurance Expense 24,000

Prepaid Insurance
To record the expired insurance

5 Interest Receivable 4,500

Interest Income
To record the earned interest income

6 Depreciation Expense-Building 115,000

Accumulated Depreciation
To record the depreciation of building

7 Depreciation Expense-Store Furniture and Equipment 8,750

Accumulated Depreciation-Store Furniture and Equipment
To record the depreciation of building

8 Unearned Sales 60,000

Sales
To record the sales earned

9 Doubtful Accounts Expense 10,400

Allowance for Doubtful Accounts
To record the uncollectible accounts

10 Income Summary 65,000

Merchandise Inventory
To close the beginning balance of inventory

Merchandise Inventory 47,500

Income Summary
To record the ending inventory

Balance 410,650

G. CLOSING ENTRIES
 FAN DE SOL
CLOSING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Sales 3,280,000
Rent Income 60,000
Interest Income 4,500
Purchase Returns and Allowances 105,000
Income Summary
To close the sales and credit accounts

Income Summary 2,363,650

Purchases
Store Salaries Expense
Utilties Expense
Depreciation Expense- Building
Depreciation Expense- Store Furniture and Equipment
Office Supplies Expense
Insurance Expense
Doubtful Accounts Expense
Miscellaneous Distribution Costs
Miscellaneous Administrative Expenses
Sales Discounts
Sales returns and allowances
To close the expense and other debit accounts

Income Summary 1,068,350

Coco, Capital
To close the net income to capital account

Coco, Capital 240,000

Coco, Drawings
To close the drawing account

Balance 7,121,500
 FAN DE SOL
REVERSING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Rent Income 60,000
Rent Receivable
To reverse the accrued income

Salaries Payable 10,000

Store Salaries Expense
To reverse the accrued expense

Interest Income 4,500

Interest Receivable
To reverse the accrued income

Balance 74,500
 GJ-1

Credit

60,000

5,500

10,000

24,000

4,500

115,000

8,750

60,000

10,400

65,000

47,500

410,650
Credit

3,449,500

1,400,000
570,000
122,000
115,000
8,750
5,500
24,000
10,400
11,000
17,000
20,000
60,000

1,068,350

240,000

7,121,500
Credit

60,000

10,000

4,500

74,500
b. Adjusted Trial Balance

FAN DE SOL
TRIAL BALANCE
As of September 30,2021

Acct code Account titles

1 Cash
21 Accounts Receivable
22 Allowance for Doubtful Accounts
23 Notes Receivable
24 Interest Receivable
25 Rent Receivable
31 Merchandise Inventory, September 30,2021
41 Prepaid Insurance
42 Office Supplies
101 Land
102 Building
103 Accumulated Depreciation-Building
104 Store Furniture and Equipment
105 Accumulated Depreciation-Store Furniture and Equipment
201 Accounts Payable
211 Salaries Payable
221 Unearned Sales
301 Coco, Capital
302 Coco, Drawing
401 Sales
402 Sales Returns and Allowances
403 Sales Discount
411 Rent Income
412 Interest Income
501 Purchases
502 Purchase Returns and Allowances
511 Store Salaries Expense
513 Utilities Expense
515 Depreciation Expense- Building
516 Depreciation Expense- Store Furniture and Equipment
518 Office Supplies Expense
521 Insurance Expense
522 Doubtful Accounts Expense
598 Miscellaneous Distribution Costs
599 Miscellaneous Expenses
601 Income Summary
 BALANCE

H. POST CLOSING TRIAL BALANCE

FAN DE SOL
POST CLOSING TRIAL BALANCE
As of September 30,2021
Acct code Account titles
1 Cash
21 Accounts Receivable
22 Allowance for Doubtful Accounts
23 Notes Receivable
24 Interest Receivable
25 Rent Receivable
31 Merchandise Inventory, September 30,2021
41 Prepaid Insurance
42 Office Supplies
101 Land
102 Building
103 Accumulated Depreciation-Building
104 Store Furniture and Equipment
105 Accumulated Depreciation-Store Furniture and Equipment
201 Accounts Payable
211 Salaries Payable
221 Unearned Sales
301 Coco, Capital

BALANCE
L
021

Debit Credit
293,000
220,000
26,400
150,000
4,500
60,000
47,500
36,000
6,500
1,000,000
2,500,000
115,000
70,000
8,750
258,000
10,000
120,000
3,021,000
240,000
3,280,000
60,000
20,000
60,000
4,500
1,400,000
105,000
570,000
122,000
115,000
8,750
5,500
24,000
10,400
11,000
17,000
17,500
 -

7,008,650 7,008,650

OL
ALANCE
021
Debit Credit
293,000
220,000
26,400
150,000
4,500
60,000
47,500
36,000
6,500
1,000,000
2,500,000
115,000
70,000
8,750
258,000
10,000
120,000
3,849,350

4,387,500 4,387,500
 C. INCOME STATEMENT

Fan de Sol
Statement of Comprehensive Income
For the year ended September 30, 2021

Notes
Net Sales 1
Less: Cost of Goods Sold 2
Gross Profit
Less: Operating Expenses
Selling and Distribution Expenses 4
Administrative and General Expense 5
Operating Income
Add: Other Income
Net Profit

D. CHANGES IN EQUITY

Fan de Sol
Statement of Equity
For the year ended September 30, 2021

Coco, Capital
Add: Net Profit
Total
Coco, Drawings
Coco, Capital, ending

E. FINANCIAL POSITION

Fan de Sol
Statement of Financial Position
As of September 30,2021
 ASSETS
Current Assets
Cash
Accounts Receivable
Allowance for Doubftful Accounts
Notes Receivable
Rent Receivable
Interest Receivable
Merchandise Inventory
Prepaid Insurance
Office Supplies
Total Current Assets

Non-Current Assets
Land
Building
Accumulated Depreciation-Building
Store Furniture and Equipment
Accumulated Depreciation-Store Furniture and Equipment
Total Non-Current Assets

Total Assets

LIABILITIES AND EQUITY

Liabilities
Accounts Payable
Salaries Payable
Unearned Sales
Total Liabilities

Equity:
Coco, Capital

Total Liabilities and Equity

 F. NOTES TO FINANCI
Note 1 : Net Sales

ncome
30, 2021
Net Sales

3,200,000 Note 2 : Cost of Goods

1,312,500
1,887,500

600,150
283,500 883,650
1,003,850
64,500 Note 3: Net Purchases
₱ 1,068,350.00

Note 4: Selling Expens

30, 2021

3,021,000
1,068,350 Note 5 : Administrative
4,089,350
240,000
₱ 3,849,350.00

Note 6: Other Income

tion
1
 293,000.00
220,000.00
26,400.00 193,600.00
150,000.00
4,500.00
60,000.00
47,500.00
36,000.00
6,500.00
₱ 791,100.00

1,000,000.00
2,500,000.00
115,000.00 2,385,000.00
70,000.00
8,750.00 61,250.00
₱ 3,446,250.00

₱ 4,237,350.00

258,000.00
10,000.00
120,000.00
388,000.00

₱ 3,849,350.00

₱ 4,237,350.00
F. NOTES TO FINANCIAL STATEMENTS
Note 1 : Net Sales
Sales 3,280,000.00
Less:
Sales Returns and Allowances 60,000.00
Sales Discount 20,000.00 80,000.00
Net Sales ₱ 3,200,000.00

Note 2 : Cost of Goods Sold Note

Inventory, Beg. 65000
Add: Net Purchases 3 1,295,000.00
Goods Available for Sale 1,360,000.00
Less Inventory, End 47,500.00
Cost of Goods Sold ₱ 1,312,500.00

Note 3: Net Purchases

Purchases 1,400,000.00
Less: Purchase Returns and Allowances 105,000.00
Net Purchases ₱ 1,295,000.00

Note 4: Selling Expenses

Store salaries Expense 570,000.00
Depreciation Expense- Store Furniture and Equipment 8,750.00
Doubtful Accounts Expense 10,400.00
Miscellaneous Distribution Costs 11,000.00
Total Selling Expenses ₱ 600,150.00

Note 5 : Administrative Expenses

Utilities Expense 122,000.00
Depreciation Expense- Building 115,000.00
Office Supplies Expense 5,500.00
Insurance Expense 24,000.00
Miscellaneous Administrative Expenses 17,000.00
Total Administrative Expenses ₱ 283,500.00

Note 6: Other Income

Rent Income 60,000.00
Interest Income 4,500.00
Other Income ₱ 64,500.00