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    ISCool Merchandising

    Uploaded by

    Julian Adam Pagal
    1) The document shows journal entries for ISCool Capital for the year ended December 31, 2020. It records various capital contributions, expenses, purchases, sales and cash transactions. 2) An adjusted trial balance is provided with additional information from the income statement and balance sheet. 3) The net loss for the year is $34,290 based on total revenues of $433,290 and total expenses of $399,000.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    ISCool Merchandising

    Uploaded by

    Julian Adam Pagal
    27 views6 pages
    1) The document shows journal entries for ISCool Capital for the year ended December 31, 2020. It records various capital contributions, expenses, purchases, sales and cash transactions. 2) An adjusted trial balance is provided with additional information from the income statement and balance sheet. 3) The net loss for the year is $34,290 based on total revenues of $433,290 and total expenses of $399,000.

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    ISCool merchandising

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    1) The document shows journal entries for ISCool Capital for the year ended December 31, 2020. It records various capital contributions, expenses, purchases, sales and cash transactions. 2) An adjusted trial balance is provided with additional information from the income statement and balance sheet. 3) The net loss for the year is $34,290 based on total revenues of $433,290 and total expenses of $399,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    27 views6 pages

    ISCool Merchandising

    Uploaded by

    Julian Adam Pagal
    1) The document shows journal entries for ISCool Capital for the year ended December 31, 2020. It records various capital contributions, expenses, purchases, sales and cash transactions. 2) An adjusted trial balance is provided with additional information from the income statement and balance sheet. 3) The net loss for the year is $34,290 based on total revenues of $433,290 and total expenses of $399,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Date Account Title Debit Credit

    Date Account Title Debit Credit


    1/1/2020 Cash 500,000
    ISCool,Capital 500,000
    To record initial investment made by Julian Adam Pagal

    Cash 240,000
    ISCool,Capital 240,000
    To record initial investment made by Julian Adam Pagal

    Freight-in 2,400
    Cash 2,400
    Paid freight charges

    10/1/2020 Accounts Payable 40,000


    Purchase Returns and Allowances 40,000
    Returned defective merchandise

    Accounts Payable 200,000


    Purchase discount (200,000x2%) 4,000
    Cash (200,000-4,000) 196,000
    Purchase merchandise on account
    # P200,000 200,000

    1/3/2020 Rent Expense [(50,000/24)x2] 4,167


    Prepaid Rent (50,000-4,167) 45,833
    Cash 50,000
    Paid 2-year rent
    # 50,000 50,000

    9/4/2020 Accounts Receivable 105,000


    Sales 105,000
    Sold merchandise on account

    Freight-out 1,040
    Cash 1,040
    Paid Freight charges

    4/19/2020 Sales Returns and Allowances 20,000


    Accounts Receivable 20,000
    Received defective merchandise sold on account

    Cash (42,500 - 850) 41,650


    Sales Discount (42,500 x 2%) 850
    Accounts Receivable 42,500
    Collection from customers sold on account
    # 42,500 42,500

    8/5/2020 Equipment 18,000


    Notes Payable 18,000
    Bought Equipment issuing a promissory note

    Office Supplies 5,000


    Cash 5,000
    Bought Office Supplies using cash

    9/29/2020 Purchases 100,500


    Accounts Payable 100,500
    Purchase merchandise on account

    Freight-in 2,000
    Cash 2,000
    Paid Freight charges

    4/10/2020 ISCool, Drawing 20,000


    Cash 20,000
    Withdraw cash for personal use

    12/15/2020 Utilities Expense 3,000


    Advertising Expense 5,000
    Miscellaneous Expense 8,000
    Cash 16,000
    Paid expenses for the year
    # 16,000 16,000

    Adjustments
    Salaries expense 10,000
    Salaries payable 10,000

    Depreciation expense 7,500


    Accumulated depreciation- computer equipment 7,500

    Office Supplies expense (5,000-3,000) 2,000


    Office Supplies 2,000

    Bad debts expense 6,000


    Allowance for Doubtful Account 6,000

    Rent Expense [(45,833/22) x 10] 20,833


    Prepaid Rent 20,833
    Worksheet
    For the year ended Decem
    Trial Balance
    Debit Credit
    ASSETS
    Current Asset
    Cash 249,210
    Accounts receivable 42,500
    Allowance for Doubtful Account
    Prepaid Rent 45,833
    Merchandise Inventory
    Office supplies 5,000
    Non-Current Asset
    Computer equipment 18,000
    Accumulated Depreciation- Equipment
    LIABILITIES
    Current Liabilities
    Accounts payable 100,500
    Notes payable 18,000
    Salaries Payable
    EQUITY
    ISCool, Capital 500,000
    ISCool, Drawing 20,000
    INCOME
    Sales 105,000
    Sales discount 850
    Sales return and allowances 20,000
    EXPENSES
    Purchases 340,500
    Purchase discount 4,000
    Purchases return and allowances 40,000
    Freight in 4,400
    Freight out 1,040
    Utilities expense 3,000
    Rent expense 4,167
    Depreciation Expense
    Office Supplies Expense
    Bad Debt Expense
    Advertising Expense 5,000
    Salaries Expense
    Miscellaneous Expense 8,000
    TOTAL 767,500 767,500
    NET LOSS
    Worksheet
    For the year ended Decemeber 31,2020
    Adjustment Adjusted Trial Balance Income Statement
    Debit Credit Debit Credit Debit Credit

    249,210
    42,500
    6,000 6,000
    20,833 25,000
    250,000
    2,000 3,000

    18,000
    7,500 7,500

    100,500
    18,000
    10,000 10,000

    500,000
    20,000

    105,000 105,000
    850 850
    20,000 20,000

    340,500 340,500
    4,000 4,000
    40,000 40,000
    4,400 4,400
    1,040 1,040
    3,000 3,000
    20,833 25,000 25,000
    7,500 7,500 7,500
    2,000 2,000 2,000
    6,000 6,000 6,000
    5,000 5,000
    10,000 10,000 10,000
    8,000 8,000
    46,333 46,333 791,000 791,000 433,290 399,000
    34,290
    433,290 433,290
    Balance Sheet
    Debit Credit

    249,210
    42,500
    6,000
    25,000
    250,000
    3,000

    18,000
    7,500

    100,500
    18,000
    10,000

    500,000
    20,000

    607,710 642,000
    34,290
    642,000 642,000

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