5 elements: Debit Credit

Asset increase
Liabilities increase
Equity increase
Revenue increase
Expenses increase

Assets = Liabilities
30,000 Cash -

25,000 Cash
5,000 Shelf

15,000 Cash
5,000 Shelf
10,000 Flowers

30,000 Cash
5,000 Shelf

27,000 Cash
 5,000 Shelf

27,000 Cash 8,000

5,000 Shelf
8,000 Flowers

27,000 Cash 8,000

5,000 Shelf
14,000 Acc receivable

19,000 Cash -
5,000 Shelf
14,000 Acc receivable
separated entity I put my cash in my business
Purchased a shelf, paid by cash at cost of
Purchased flowers, paid by cash at cost of
Sold all flowers, received by cash
I withdraw cash from business
Purchased flowers on credit at cost of
Sold all flowers on credit
+ Equity Settled the payables amount to the supplier
30,000 Owner's equity

30,000 Owner's equity

30,000 Owner's equity

30,000 Owner's equity

5,000 Retained earnings

30,000 Owner's equity

 2,000 Retained earnings

Acc Payable 30,000 Owner's equity

2,000 Retained earnings

Acc Payable 30,000 Owner's equity

8,000 Retained earnings

Acc Payable 30,000 Owner's equity

8,000 Retained earnings
ash in my business 30,000
a shelf, paid by cash at cost of 5,000
flowers, paid by cash at cost of 10,000
wers, received by cash 15,000
cash from business 3,000
flowers on credit at cost of 8,000
wers on credit 14,000
payables amount to the suppliers 8,000
Dr Cash 30,000
Cr Owner's equity 30,000
Dr Supplies 5,000
Cr Cash 5,000

Dr Merchandise good 10,000

Cr Cash 10,000

Dr Cash 15,000
Cr Revenue 15,000
arnings Dr Cost of sales 10,000
Cr Merchandise good 10,000

Dr Owner's withdrawa 3,000

arnings Cr Cash 3,000

Dr Merchandise good 8,000

arnings Cr Acc payable 8,000

Dr Acc receivables 14,000

arnings Cr Revenue 14,000
Dr Cost of sales 8,000
Cr Merchandise good 8,000

arnings Dr Acc Payable 8,000

Cr Cash 8,000
 Assets
Cash
Receivables from customers / Trade receivables / Accounts receivable
Inventories Materials, Supplies, Finished goods, merchandise
Prepayments / Prepaid
Cost Properties, plants and equipment Buidings, Vehicles, Machinary, Equipment…
Cost Intangible fixed assets Patent, Lisence, Brand names…
Accumulated Depreciation
Liabilities
Payables to suppliers / Trade payables / Accounts payable
Taxes / Payables to State Budget
Payables to employees
Accruals
Borrowings / Loans
Equity
Owner's equity / Shared capital
Owner's withdrawal / Dividend
Retained earnings
Revenue
Revenue
Financial income
Other income / gain
Expense
Cost of sales
Distributing expense Salary exp
Administrative expense Rent exp
Utility exp
Adverrtising exp
 Sell goods / Provide services on credit
Dr Receivables from customers increase
Cr Revenue increase

Later, collect cash from customers

Dr Cash increase
Cr Receivables from customers decrease

Purchase supplies on account

Dr Supplies increase
Cr Payables to suppliers increase

Later, settle the payable amount

Dr Payables to suppliers decrease
Cr Cash decrease

Agree to pay 200 USD for an employee

Dr Salary exp increase
Cr Payables to employees increase

After the work is done, pay cash to the employee

Dr Payables to employees decrease
Cr Cash decrease
Accounts receivable
Supplies, Finished goods, merchandise goods…

ehicles, Machinary, Equipment…

nce, Brand names…
Dr Cash 30,000
Cr Owner's investment 30,000
Dr Supplies 5,000
Cr Cash 5,000

Dr Merchandise goods 10,000

Cr Cash 10,000

Dr Cash 15,000
Cr Revenue 15,000
Dr Cost of sales 10,000
Cr Merchandise goods 10,000

Dr Owner's withdrawal 3,000

Cr Cash 3,000

Dr Merchandise goods 8,000

Cr Acc payable 8,000

Dr Acc receivables 14,000

Cr Revenue 14,000
Dr Cost of sales 8,000
Cr Merchandise goods 8,000

Dr Acc Payable 8,000

Cr Cash 8,000
 JOURNAL _ Jan 2021

Transaction date Description PR

Cash
Owner's investment
Investment from the owner
Supplies
Cash
Purchase a shelf
Merchandise goods
Cash
Purchase flowers
Cash
Revenue
Sell flowers
Cost of sales
Merchandise goods
Sell flowers
Currency: USD
Debit Credit Transaction date
30,000
30,000

5,000
5,000

10,000
10,000

15,000
15,000

10,000
10,000
LEDGER for Cash account _ Jan 2021
Currency: USD
Description PR Debit Credit
Investment from the owner 30,000
Purchase a shelf 5,000
Purchase flowers 10,000
Sell flowers 15,000
Balance Transaction date
30,000
25,000
15,000
30,000
LEDGER for Merchandise goods account _ Jan 2021
Currency: USD
Description PR Debit Credit
Purchase flowers 10,000
Sell flowers 10,000
Balance
10,000
-
 JOURNAL _ September
JOURNAL _ September 2021
Doc. date, Currency: USD
Doc. No
Transaction date Description PR Debit
01 September 2022 Cash 101 38,000
Office Equipment 106 15,000
Henry Humble, Capital 301
Investment from the owner
02 September 2022 Prepaid Rent 105 9,000
Cash 101
Office Rent Prepayment
04 September 2022 Office Equipment 106 8,000
Accounts Payable 201
Purchase Equipment
04 September 2022 Office Supplies 103 2,400
Accounts Payable 201
Purchase Supplies
08 September 2022 Cash 101 3,280
Revenue 401
Revenue
12 September 2022 Accounts Receivable 102 15,400
Revenue 401
Revenue
13 September 2022 Accounts Payable 201 10,400
Cash 101
Settle payable amount
19 September 2022 Prepaid Insurance 104 1,900
Cash 101
 Insurance Prepayment
22 September 2022 Cash 101 7,700
Accounts Receivable 102
Receive payment from customer
24 September 2022 Accounts Receivable 102 2,100
Revenue 401
Revenue
28 September 2022 Henry Humble, Withdrawal 302 5,300
Cash 101
Owner's withdrawal
29 September 2022 Office Supplies 103 550
Accounts Payable 201
Purchase Supplies
30 September 2022 Utility expenses 501 860
Cash 101
Utility expenses
Credit

53,000

9,000

8,000

2,400

3,280

15,400

10,400

1,900
7,700

2,100

5,300

550

860
LEDGER FOR CASH ACCOUNT _ September
Doc. date, Currency: USD
Doc. No
Transaction date Description PR Debit
01 September 2022 Investment from the owner 38,000
02 September 2022 Office Rent Prepayment
08 September 2022 Revenue 3,280
13 September 2022 Settle payable amount
19 September 2022 Insurance Prepayment
22 September 2022 Receive payment from customer 7,700
28 September 2022 Owner's withdrawal
30 September 2022 Utility expenses

LEDGER FOR ACCOUNTS RECEIVABLE ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
12 September 2022 Revenue 15,400
22 September 2022 Receive payment from customer
24 September 2022 Revenue 2,100

LEDGER FOR OFFICE SUPPLIES ACCOUNT_ September

Currency: USD
Transaction date Description PR Debit
04 September 2022 Purchase Supplies 2,400
29 September 2022 Purchase Supplies 550
LEDGER FOR PREPAID INSURANCE ACCOUNT _ September
Currency: USD
Transaction date Description PR Debit
19 September 2022 Insurance Prepayment 1,900

LEDGER FOR PREPAID RENT ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
02 September 2022 Office Rent Prepayment 9,000

LEDGER FOR OFFICE EQUIPMENT ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
01 September 2022 Investment from the owner 15,000
04 September 2022 Purchase Equipment 8,000

LEDGER FOR ACCOUNTS PAYABLE ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
04 September 2022 Purchase Equipment
04 September 2022 Purchase Supplies
13 September 2022 Settle payable amount 10,400
29 September 2022 Purchase Supplies
LEDGER FOR HENRY HUMBLE, CAPITAL ACCOUNT _ September
Currency: USD
Transaction date Description PR Debit
01 September 2022 Investment from the owner

LEDGER FOR HENRY HUMBLE, WITHDRAWAL ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
28 September 2022 Owner's withdrawal 5,300

LEDGER FOR REVENUE ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
08 September 2022 Revenue
12 September 2022 Revenue
24 September 2022 Revenue

LEDGER FOR UTILITY EXPENSE ACCOUNT _ September

Currency: USD
Transaction date Description PR Debit
30 September 2022 Utility expenses 860
Account No: 101 TRIAL BALANCE AS AT 30 SEP 2022

Credit Balance
38,000 Cash
9,000 29,000 Accounts Receivable
32,280 Office Supplies
10,400 21,880 Prepaid Insurance
1,900 19,980 Prepaid Rent
27,680 Office Equipment
5,300 22,380 Accounts Payable
860 21,520 Henry Humble, Capital
Henry Humble, Withdrawal
Revenue
Account No: 102 Utility expenses

Credit Balance
15,400
7,700 7,700
9,800

Account No: 103

Credit Balance
2,400
2,950
Account No: 104

Credit Balance
1,900

Account No: 105

Credit Balance
9,000

Account No: 106

Credit Balance
15,000
23,000

Account No: 201

Credit Balance
8,000 8,000
2,400 10,400
-
550 550
Account No: 301

Credit Balance
53,000 53,000

Account No: 302

Credit Balance
5,300

Account No: 401

Credit Balance
3,280 3,280
15,400 18,680
2,100 20,780

Account No: 501

Credit Balance
860
S AT 30 SEP 2022
Currency: USD
Dr Balance Cr Balance
21,520
9,800
2,950
1,900
9,000
23,000
550
53,000
5,300
20,780
860
74,330 74,330
 JOURNAL _ November
Doc. date, Currency: USD
Doc. No
Transaction date Description PR Debit
01 November 2022 Cash 101 30,000
01 November 2022 Office Equipment 106 15,000
01 November 2022 Matt Zucker, Capital 301
01 November 2022 Investment from the owner
02 November 2022 Prepaid Rent 105 4,500
02 November 2022 Cash 101
02 November 2022 Prepaid Rent
04 November 2022 Office Equipment 106 2,500
04 November 2022 Office Supplies 103 600
04 November 2022 Accounts Payable 201
04 November 2022 Purchase
08 November 2022 Cash 101 3,400
08 November 2022 Revenue 401
08 November 2022 Revenue
12 November 2022 Accounts Receivable 102 10,200
12 November 2022 Revenue 401
12 November 2022 Revenue
13 November 2022 Accounts Payable 201 3,100
13 November 2022 Cash 101
13 November 2022 Settle Payable amount
19 November 2022 Prepaid Insurance 104 1,800
19 November 2022 Cash 101
19 November 2022 Prepaid Insurance
22 November 2022 Cash 101 5,200
22 November 2022 Accounts Receivable 102
22 November 2022 Receive Payment
24 November 2022 Accounts Receivable 102 1,750
24 November 2022 Revenue 401
24 November 2022 Revenue
28 November 2022 Matt Zucker, Withdrawal 5,300
28 November 2022 Cash 101
28 November 2022 Owner's Withdrawal
29 November 2022 Office Supplies 103 249
29 November 2022 Accounts Payable 201
29 November 2022 Purchase
30 November 2022 Utility expenses 501 831
30 November 2022 Cash 101
30 November 2022 Utility expenses
Credit

45,000

4,500

3,100

3,400

10,200

3,100

1,800

5,200
1,750

5,300

249

831
LEDGER FOR CASH ACCOUNT _ November
Doc. date, Currency: USD
Doc. No
Transaction date Description PR Debit
01 November 2022 Investment from the owner 30,000
02 November 2022 Prepaid Rent
08 November 2022 Revenue 3,400
13 November 2022 Settle Payable amount
19 November 2022 Prepaid Insurance
22 November 2022 Receive Payment 5,200
28 November 2022 Owner's Withdrawal
30 November 2022 Utility expenses

LEDGER FOR ACCOUNTS RECEIVABLE ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
12 November 2022 Revenue 10,200
22 November 2022 Receive Payment
24 November 2022 Revenue 1,750

LEDGER FOR OFFICE SUPPLIES ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
04 November 2022 Purchase 600
29 November 2022 Purchase 249
LEDGER FOR PREPAID INSURANCE ACCOUNT _ November
Currency: USD
Transaction date Description PR Debit
19 November 2022 Prepaid Insurance 1,800

LEDGER FOR PREPAID RENT ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
02 November 2022 Prepaid Rent 4,500

LEDGER FOR OFFICE EQUIPMENT ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
01 November 2022 Investment from the owner 15,000
04 November 2022 Purchase 2,500

LEDGER FOR ACCOUNTS PAYABLE ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
04 November 2022 Purchase
13 November 2022 Settle Payable amount 3,100
29 November 2022 Purchase

LEDGER FOR MATT ZUCKER, CAPITAL ACCOUNT _ November

 Currency: USD
Transaction date Description PR Debit
Transaction date Investment from the owner

LEDGER FOR MATT ZUCKER, WITHDRAWAL ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
28 November 2022 Owner's Withdrawal 5,300

LEDGER FOR REVENUE ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
08 November 2022 Revenue
12 November 2022 Revenue
24 November 2022 Revenue

LEDGER FOR UTILITY EXPENSE ACCOUNT _ November

Currency: USD
Transaction date Description PR Debit
30 November 2022 Utility expenses 831
Account No: 101 TRIAL BALANCE AS AT 30 NOV 2022

Credit Balance
30,000 Cash
4,500 25,500 Accounts Receivable
28,900 Office Supplies
3,100 25,800 Prepaid Insurance
1,800 24,000 Prepaid Rent
29,200 Office Equipment
5,300 23,900 Accounts Payable
831 23,069 Matt Zucker, Capital
Matt Zucker, Withdrawal
Revenue
Account No: 102 Utility expenses

Credit Balance
10,200
5,200 5,000
6,750

Account No: 103

Credit Balance
600
849
Account No: 104

Credit Balance
1,800

Account No: 105

Credit Balance
4,500

Account No: 106

Credit Balance
15,000
17,500

Account No: 201

Credit Balance
3,100 3,100
-
249 249

Account No: 301

 Credit Balance
45,000 45,000

Account No: 302

Credit Balance
5,300

Account No: 401

Credit Balance
3,400 3,400
10,200 13,600
1,750 15,350

Account No: 501

Credit Balance
831
S AT 30 NOV 2022
Currency: USD
Dr Balance Cr Balance
23,069
6,750
849
1,800
4,500
17,500
249
45,000
5,300
15,350
831
60,599 60,599
a, Prepare journal entries for December transactions

2-Dec Dr acc Advertising exp 1,025 a,

Cr acc Cash 1,025

3-Dec Dr acc Repairs exp 500 b,

Cr acc Cash 500

4-Dec Dr acc Cash 3,950 c,

Cr acc Accounts Receivable 3,950

10-Dec Dr acc Wages exp 750 d,

Cr acc Cash 750

14-Dec Dr acc Cash 1,500 e,

Cr acc Unearned Revenue 1,500

15-Dec Dr acc Computer supplies 1,100 f,

Cr acc Accounts Payable 1,100

16-Dec No record

20-Dec Dr acc Cash 5,625

Cr acc Revenue 5,625

28-Dec Dr acc Cash 3,000

Cr acc Accounts Receivable 3,000

29-Dec Dr acc Mileage exp 192

 Cr acc Cash 192

31-Dec Dr acc S.Rey, withdrawals 1,500

Cr acc Cash 1,500
b, Prepare adjusting entries

Dr acc Computer supplies expense 3,065

Cr acc Computer supplies 3,065

Dr acc Insurance expense 555

Cr acc Prepaid insurance 555

Dr acc Wages expense 500

Cr acc Wages payable 500

Dr acc Depreciation expense - Computer equ 1,250

Cr acc Accumulated depreciation - Computer 1,250

Dr acc Depreciation expense - Office equipm 400

Cr acc Accumulated depreciation - Office eq 400

Dr acc Rent expense 2,475

Cr acc Prepaid rent 2,475
a,b, Post above entries to Ledger

LEDGER FOR CASH ACCOUNT _ Dec 2021 Account No: 101

Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 38,264
2-Dec Advertising exp 1,025
3-Dec Repairs exp 500
4-Dec Receive Payment 3,950
10-Dec Pay wages 750
14-Dec Receive Payment 1,500
20-Dec Receive Payment 5,625
28-Dec Receive Payment 3,000
29-Dec Mileage exp 192
31-Dec Owner's Withdrawal 1,500

LEDGER FOR ACCOUNTS RECEIVABLE ACCOUNT _ Dec 2021 Account No: 102
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 12,618
4-Dec Receive Payment 3,950
28-Dec Receive Payment 3,000

LEDGER FOR COMPUTER SUPPLIES ACCOUNT _ Dec 2021 Account No: 103
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 2,545
 15-Dec Purchase 1,100
31-Dec Computer supplies expense 3,065

LEDGER FOR PREPAID INSURANCE ACCOUNT _ Dec 2021 Account No: 104
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 2,220
31-Dec Insurance expense 555

LEDGER FOR PREPAID RENT ACCOUNT _ Dec 2021 Account No: 105
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 3,300
31-Dec Rent expense 2,475

LEDGER FOR OFFICE EQUIPMENT ACCOUNT _ Dec 2021 Account No: 106
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 8,000

LEDGER FOR ACCUMULATED DEPRECIATION - OFFICE EQUIPMEN

Account No: 107
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Depreciation expense - Office equipment 400
LEDGER FOR COMPUTER EQUIPMENT ACCOUNT _ Dec 2021 Account No: 108
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 20,000

LEDGER FOR ACCUMULATED DEPRECIATION - OFFICE EQUIPMEN

Account No: 109
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Depreciation expense - Computer equipment 1,250

LEDGER FOR ACCOUNTS PAYABLE ACCOUNT _ Dec 2021 Account No: 201
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
15-Dec Purchase 1,100

LEDGER FOR WAGES PAYABLE ACCOUNT _ Dec 2021 Account No: 202
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Wages expense 500

LEDGER FOR UNEARNED REVENUE ACCOUNT _ Dec 2021 Account No: 203
 Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
14-Dec Unearned revenue 1,500

LEDGER FOR S.REY, CAPITAL ACCOUNT _ Dec 2021 Account No: 301
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 73,000

LEDGER FOR S.REY, WITHDRAWAL ACCOUNT _ Dec 2021 Account No: 302
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 5,600
31-Dec Withdrawals 1,500

LEDGER FOR REVENUE ACCOUNT _ Dec 2021 Account No: 401

Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 25,659
20-Dec Revenue 5,625

LEDGER FOR Depreciation expense - Office equipment ACCOUNT Account No: 501
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
 31-Dec Depreciation expense - Office equipmen 400

LEDGER FOR Depreciation expense - Computer equipment ACCOUAccount No: 502

Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Depreciation expense - Computer equip 1,250

LEDGER FOR WAGES EXPENSE ACCOUNT _ Dec 2021 Account No: 503
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 2,625
10-Dec Wages exp 750
31-Dec Wages exp 500

LEDGER FOR INSURANCE EXPENSE ACCOUNT _ Dec 2021 Account No: 504
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Insurance expense 555

LEDGER FOR RENT EXPENSE ACCOUNT _ Dec 2021 Account No: 505
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
 31-Dec Rent expense 2,475

LEDGER FOR COMPUTER SUPPLIES EXPENSE ACCOUNT _ Dec 2 Account No: 506
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance -
31-Dec Computer supplies expense 3,065

LEDGER FOR ADVERTISING EXPENSE ACCOUNT _ Dec 2021 Account No: 507
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 1,728
2-Dec Advertising exp 1,025

LEDGER FOR MILEAGE EXPENSE ACCOUNT _ Dec 2021 Account No: 508
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 704
29-Dec Mileage exp 192

LEDGER FOR MISCELLANEOUS EXPENSE ACCOUNT _ Dec 2021 Account No: 509
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 250
LEDGER FOR REPAIR EXPENSE ACCOUNT _ Dec 2021 Account No: 510
Currency: USD
Transaction date Description PR Debit Credit
30-Nov Unadjusted balance 805
3-Dec Repairs exp 500
 c, Prepare adjusted TB as at 31 Dec 2021

ccount No: 101

Account
Balance Cash
38,264 Accounts Receivable
37,239 Computer Supplies
36,739 Prepaid insurance
40,689 Prepaid rent
39,939 Office equipment
41,439 Accumulated depreciation - Office equipment
47,064 Computer equipment
50,064 Accumulated depreciation - Computer equipment
49,872 Accounts Payable
48,372 Wages payable
Unearned computer services revenue
S.Rey, Capital
ccount No: 102 S.Rey, Withdrawals
Computer services revenue
Balance Depreciation expense - Office equipment
12,618 Depreciation expense - Computer equipment
8,668 Wages expense
5,668 Insurance expense
Rent expense
Computer supplies expense
ccount No: 103 Advertising expense
Mileage expense
Balance Miscellaneous expenses
2,545 Repairs expense - Computer
 3,645 Total
580

ccount No: 104

Balance
2,220
1,665

ccount No: 105

Balance
3,300
825

ccount No: 106

Balance
8,000

ccount No: 107

Balance
-
400
ccount No: 108

Balance
20,000

ccount No: 109

Balance
-
1,250

ccount No: 201

Balance
-
1,100

ccount No: 202

Balance
-
500

ccount No: 203

 Balance
-
1,500

ccount No: 301

Balance
73,000

ccount No: 302

Balance
5,600
7,100

ccount No: 401

Balance
25,659
31,284

ccount No: 501

Balance
-
 400

ccount No: 502

Balance
-
1,250

ccount No: 503

Balance
2,625
3,375
3,875

ccount No: 504

Balance
-
555

ccount No: 505

Balance
-
 2,475

ccount No: 506

Balance
-
3,065

ccount No: 507

Balance
1,728
2,753

ccount No: 508

Balance
704
896

ccount No: 509

Balance
250
ccount No: 510

Balance
805
1,305
Unadjusted TB at 30 Nov 2021 Adjusted TB as at 31 Dec 2021
Debit Credit Debit Credit
38,264 48,372
12,618 5,668
2,545 580
2,220 1,665
3,300 825
8,000 8,000
- 400
20,000 20,000
- 1,250
- 1,100
- 500
- 1,500
73,000 73,000
5,600 7,100
25,659 31,284
- 400
- 1,250
2,625 3,875
- 555
- 2,475
- 3,065
1,728 2,753
704 896
250 250
805 1,305
98,659 98,659 109,034 109,034
d, Prepare an IS

Business Solutions
Income Statement
for the year ended at 31 December 2021
Currency: USD

Revenue 31,284
Expenses
Depreciation expense - Office equipment 400
Depreciation expense - Computer equipment 1,250
Wages expense 3,875
Insurance expense 555
Rent expense 2,475
Computer supplies expense 3,065
Advertising expense 2,753
Mileage expense 896
Miscellaneous expenses 250
Repairs expense - Computer 1,305
Total expenses 16,824
Net income 14,460
e, Prepare a Statement of Changes in Equity

Business Solutions
Changes in Equity
for the year ended at 31 December 2021
Currency: USD

S.Rey, Capital, as at 31 December 2020 73,000

Plus Net income 14,460
Less owner's withdrawals 7,100
S.Rey, Capital, as at 31 December 2021 80,360
f, Prepare a BS

Business Solutions
Balance Sheet
as at 31 December 2021
Currency: USD

Assets
Current assets
Cash 48,372
Accounts Receivable 5,668
Computer Supplies 580
Prepaid insurance 1,665
Prepaid rent 825
57,110
Non-current assets
Office equipment 8,000
Accumulated depreciation - Office equipment (400)
Computer equipment 20,000
Accumulated depreciation - Computer equipment (1,250)
26,350
Total assets 83,460

Liabilities
Accounts Payable 1,100
Wages payable 500
Unearned computer services revenue 1,500
3,100
Owner's Equity
S.Rey, Capital 80,360
80,360
Total liabilities and equity 83,460
Alonzo Institute Extented trial balance as at 31 Dec 202
Unadjusted TB as 31 Dec
Accounts Debit Credit
Cash 60,000
Accounts receivable -
Teaching supplies 70,000
Prepaid insurance 19,000
Prepaid rent 3,800
Professional library 12,000
Accumulated depreciation, professional library 2,500
Equipment 40,000
Accumulated depreciation, equipment 20,000
Accounts payable 11,200
Salaries payable -
Unearned training fees 28,600
ABC, capital 71,500
ABC, withdrawals 20,000
Tuition fees earned 129,200
Training fees earned 68,000
Depreciation expense, Professional library -
Depreciation expense, Equipment -
Salaries expense 44,200
Insurance expense -
Rent expense 29,600
Teaching supplies expense -
Advertising expense 19,000
Utilities expense 13,400
Total 331,000 331,000
ce as at 31 Dec 2021 Adjusting journal entrie
Adjustments Adjusted TB at 31 Dec
Debit Credit Debit Credit a, Dr acc
60,000 Cr acc
5,750 5,750
50,000 20,000 b, Dr acc
9,500 9,500 Cr acc
3,800 -
12,000 c, Dr acc
2,400 4,900 Cr acc
40,000
5,000 25,000 d, Dr acc
11,200 Cr acc
450 450
28,600 - e, Dr acc
71,500 Cr acc
20,000
5,750 134,950 f, Dr acc
28,600 96,600 Cr acc
2,400 2,400
5,000 5,000 g, Dr acc
450 44,650 Cr acc
9,500 9,500
3,800 33,400 h, Dr acc
50,000 50,000 Cr acc
19,000
13,400
105,500 105,500 344,600 344,600
djusting journal entries

Insurance expense 9,500

Prepaid insurance 9,500

Teaching supplies expense 50,000

Teaching supplies 50,000

Depreciation expense - Equipment 5,000

Accumulated depreciation - Equipment 5,000

Depreciation expense - Professional Li 2,400

Accumulated depreciation - Professiona 2,400

Unearned training fees 28,600

Training fees earned 28,600

Accounts Receivable 5,750

Tuition fees earned 5,750

Salaries expense 450

Salaries payable 450

Rent expense 3,800

Prepaid rent 3,800
 Alonzo Institute
Income Statement
for the year ended at 31 December 2021
Currency: USD

Revenue
Tuition fees earned 134,950
Training fees earned 96,600
Total revenue 231,550
Expenses
Depreciation expense, Professional library 2,400
Depreciation expense, Equipment 5,000
Salaries expense 44,650
Insurance expense 9,500
Rent expense 33,400
Teaching supplies expense 50,000
Advertising expense 19,000
Utilities expense 13,400
Total expenses 177,350
Net income 54,200
 Alonzo Institute
Changes in Equity
for the year ended at 31 December 2021
Currency: USD

Alonzo, Capital, as at 31 December 2020 71,500

Plus Net income 54,200
Less owner's withdrawals 20,000
Alonzo, Capital, as at 31 December 2021 105,700
 Alonzo Institute
Balance Sheet
as at 31 December 2021
Currency: USD

Assets
Current assets
Cash 60,000
Accounts receivable 5,750
Teaching supplies 20,000
Prepaid insurance 9,500
95,250
Non-current assets
Professional library 12,000
Accumulated depreciation, professional library (4,900)
Equipment 40,000
Accumulated depreciation, equipment (25,000)
22,100
Total assets 117,350

Liabilities
Accounts payable 11,200
Salaries payable 450
11,650
Owner's Equity
Alozno, Capital 105,700
105,700
Total liabilities and equity 117,350
 2017 2018
Ratios related to the company's liquidity
Current ratio
Quick ratio
Ratios related to the company's efficiency
Inventory turnover ratio
Assets turnover ratio
Ratios related to the company's solvency
Debt to Equity ratio
Asset to Equity ratio
Ratios related to the company's profitability
Gross profit margin
Net profit margin
Return on Assets
Return on Equity
Ratios related to the company's market prospect
Earnings per Share
Price to Earnings
2019 2020 2021
 Jan Feb Mar Apr May
Revenue 52 55 55 60 55
COGS (30) (31) (31) (35) (31)
Salaries (10) (10) (10) (10) (10)
Electricity (5) (5) (4) (3) (3)
Depreciation (3) (3) (3) (3) (3)
Other overheads (2) (2) (2) (2) (2)
Total exp (50) (51) (50) (53) (49)
Profit 2 4 5 7 6

Inventories purchased 30 31 26 30 26

Jan Feb Mar Apr May

Cash inflow 60 52 55 55 60
Trade receivable 60 52 55 55 60

Cash outflow 42 42 68 38 42
Inventories purchased 30 30 31 26 30
Salaries 10 10 10 10 10
Other overheads 2 2 2 2 2
Electricity 14
A new van purchase 11

Net cash inflow/outflow 18 10 -13 17 18

Beginning cash 12 30 40 27 44
Ending cash 30 40 27 44 62
Jun
53
(32)
(10)
(3)
(3)
(2)
(50)
3

27

Jun
55
55

47
26
10
2
9

8
62
70
Revenue 8,000 11,000 14,000 17,000
COGS 6,000 8,250 10,500 12,750

Jun Jul Aug Sep

Cash inflow
Cash sales 4,000 5,500 7,000 8,500
Trade receivable 4,000 5,500
Total 4,000 5,500 11,000 14,000

Cash outflow
Leasehold property purchase 40,000
Equipment purchase 10,000
Motor vehicle purchase 6,000
Inventories purchase 22,000 9,250 11,500
Wages and salaries 900 900 900 900
Other overheads 500 500 500 500
Sales commission 320 440 560
Total 57,400 23,720 11,090 13,460

Net cash inflow/outflow (53,400) (18,220) (90) 540

 22,000 22,000
16,500 16,500

Oct Nov

11,000 11,000
7,000 8,500
18,000 19,500

7,000

13,750 17,500
900 900
650 650
680 880
15,980 26,930

2,020 (7,430)