Margaux Mojica Trading Solution - Reversing Entries

Assume using PERIODIC Inventory System, Gross Method, Gross Profit Ratio is 30%
Recap
SHIPPING TERMS Who shoulders?
FOB Shipping Point Buyer
FOP Destination Seller
Who pays?
Freight Collect Buyer
Freight Prepaid Seller
Example
Sales 270,000.00 100%
Cost of Goods Sold 189,000.00 70%
Gross Profit 81,000.00 30%
March 1 Cash
2 Accounts Payable
4 Purchases
5 Accounts Receivable
7 Advertising Expense
7 Cash
8 Accounts Payable
YES Buyer's Perspective

YES FOB SP Buyer will shoulder 9 Transportation In
Freight Collect Buyer Pays
Transportation In
10 Sales Returns & Allowances

12 Cash
Sales Discount
14 Interest Expense
15 Salaries Expense
YES Seller's Perspective

YES FOB Destination Seller will shoulder 18 Transportation Out
Freight Collect Buyer Pays
Transportation Out
19 Supplies
20 Purchases
22 Miscellaneous Expense
23 Cash
Sales Discount
24 Purchases
YES Buyer's Perspective 24 Transportation In

YES FOB Shipping Point Buyer will shoulder
Freight Prepaid Seller Pays
Transportation In
26 Sales Returns & Allowances
28 Mojica, Withdrawals
28 Accounts Payable
29 Purchases
30 Accounts Payable
31 Cash
Margaux Mojica Trading
General Journal
March 31, 2019
113,000.00
Accounts Receivable 113,000.00
To record collection from previous sales
Accounts Payable 64,000.00

Purchase Discount 1,920.00
Cash 62,080.00
To record accounts due less 3% cash discount
170,000.00
To record puchases with credit terms 3/10, n/30, FOB Shipping Point

Sales 270,000.00
Sold merchandise to Harry Co. with credit terms, 2/10, n/30, FOB Shipping Point
Advertising Expense 6,000.00

Cash 6,000.00
To record advertising expense for the month
180,000.00
Sales 180,000.00
To record cash sales with trade discount of 20%, 10%

Purchase Discount 5,100.00
Cash 164,900.00
To record settlement on Mar. 4 transaction
Transportation In 4,000.00
Cash 4,000.00
To account for freight charges - LBC
Sales Returns & Allowances 70,000.00

To record return of goods from Harry Co.
196,000.00
Sales Discount 4,000.00
To record collection from Harry Co. with 2% discount
Interest Expense 26,000.00

Cash 26,000.00
To record payment of interest on mortgage payable
Salaries Expense 51,000.00

Cash 51,000.00
To record payment of salaries

Sales 392,000.00
To record sales to Aneth Co., 2/10. n/30, FOB Destination
Transportation Out 4,000.00

To account for freight charges Aneth Co.
21,000.00
Cash 21,000.00
To account for purchase of supplies
125,000.00
To record purchase from Joel Co, 3/10, n/30, FOB Destination
Miscellaneous Expense 7,000.00

Cash 7,000.00
To record payment of miscellaneous expense
380,160.00
Sales Discount 7,840.00
To record collection from Aneth Co.
373,000.00
To record puchase fom Cheska Co. 3/10, n/30 , FOB Shipping Point
To account for freight charges - Lalamove

Sales 420,000.00
To record sales to Aneth Co. 2/10, n/30, FOB Shipping Point
Sales Returns & Allowances 71,000.00

To record returns from Aneth Co.
Mojica, Withdrawals 400,000.00

Cash 400,000.00
To record drawings from the owner

Purchase Returns & Allowances 25,000.00
To record returns to Cheska Co.
1,500.00
To record purchase with credit terms 2/5, n/30, FOB Shipping Point

Purchase Discount 30.00
Cash 1,470.00
To record settlement of Mar 29 transaction
196.00
Purchase Returns and Allowances 196.00
To record cash refund for defective merchandise
64,000*3%
250,000.00
(50,000.00)
200,000.00
(20,000.00)
180,000.00
170,000*3%
200.000*2%
392,000*98% less 4,000 392,000.00

392,000*2% (7,840.00)
384,160.00
(4,000.00)
380,160.00
1,500*.02
200*.98
General Ledger
March 31, 2019
CASH
3/1 33,000.00 3/4 62,080.00 3/4
3/1 113,000.00 3/7 6,000.00 3/8
3/7 180,000.00 3/8 164,900.00 3/28
3/12 196,000.00 3/9 4,000.00 3/30
3/23 380,160.00 3/14 26,000.00
3/31 196.00 3/15 51,000.00
3/19 21,000.00
3/22 7,000.00
3/28 400,000.00
3/30 1,470.00
902,356.00 743,450.00
158,906.00
ACCOUNTS RECEIVABLE
3/1 192,000.00 3/1 113,000.00
3/5 270,000.00 3/10 70,000.00
3/16 392,000.00 3/12 200,000.00
3/25 420,000.00 3/18 4,000.00
3/23 388,000.00
3/26 71,000.00
1,274,000.00 846,000.00
428,000.00
MERCHANDISE INVENTORY
3/1 413,000.00
413,000.00
SUPPLIES
3/1 51,000.00
3/19 21,000.00
72,000.00
PREPAID INSURANCE
3/1 48,000.00
48,000.00
LAND
3/1 460,000.00
460,000.00
BUILDING
3/1 1,750,000.00
1,750,000.00
AD- BUILDING
3/1 350,000.00
350,000.00
EQUIPMENT
3/1 2,310,000.00
2,310,000.00
AD - EQUIPMENT
3/1 630,000.00
630,000.00
ACCOUNTS PAYABLE MOJICA, CAPITAL
64,000.00 3/1 108,000.00 3/1 1,569,000.00
170,000.00 3/4 170,000.00
25,000.00 3/20 125,000.00
1,500.00 3/24 373,000.00
3/24 9,000.00 1,569,000.00
3/29 1,500.00
260,500.00 786,500.00
526,000.00
SALARIES PAYABLE MOJICA, WITHDRAWALS

3/28 400,000.00
400,000.00
MORTGAGE PAYABLE SALES

3/1 2,600,000.00 3/5 270,000.00
3/7 180,000.00
3/16 392,000.00
3/25 420,000.00
2,600,000.00
1,262,000.00
SALES RETURNS & ALLOWANCES

3/10 70,000.00
3/26 71,000.00
141,000.00
SALES DISCOUNTS
3/12 4,000.00
3/23 7,840.00
11,840.00
PURCHASES
3/4 170,000.00
3/20 125,000.00
3/24 373,000.00
3/29 1,500.00
669,500.00
PURCHASE RETURNS & ALLOWANCES
3/28 25,000.00
3/31 196.00
25,196.00
PURCHASE DISCOUNTS
3/4 1,920.00
3/8 5,100.00
3/30 30.00
7,050.00
TRANSPORTATION IN
3/9 4,000.00
3/24 9,000.00
13,000.00
SALARIES EXPENSE
3/15 51,000.00
51,000.00
SUPPLIES EXPENSE
INSURANCE EXPENSE
DEPRECIATION EXPENSE - BLDG
DEPRECIATION EXPENSE - EQUIPMENT
TRANSPORTATION OUT
3/18 4,000.00
4,000.00
ADVERTISING EXPENSE
3/7 6,000.00
6,000.00
INTEREST EXPENSE
3/14 26,000.00
26,000.00
MISCELLANEOUS EXPENSE
3/22 7,000.00
7,000.00
Unadjusted Trial Balance
March 31, 2019
CASH 158,906.00
ACCOUNTS RECEIVABLE 428,000.00
MERCHANDISE INVENTORY 413,000.00
SUPPLIES 72,000.00
PREPAID INSURANCE 48,000.00
LAND 460,000.00
BUILDING 1,750,000.00
Accumulated Depreciation - Building 350,000.00
EQUIPMENT 2,310,000.00
Accumulated Depreciation -Equipment 630,000.00
ACCOUNTS PAYABLE 526,000.00
SALARIES PAYABLE -
MORTGAGE PAYABLE 2,600,000.00
MOJICA, CAPITAL 1,569,000.00
MOJICA, WITHDRAWALS 400,000.00
SALES 1,262,000.00
SALES RETURNS & ALLOWANCES 141,000.00
SALES DISCOUNTS 11,840.00
PURCHASES 669,500.00
PURCHASE RETURNS & ALLOWANCES 25,196.00
PURCHASE DISCOUNTS 7,050.00
TRANSPORTATION IN 13,000.00
SALARIES EXPENSE 51,000.00
SUPPLIES EXPENSE -
INSURANCE EXPENSE -
DEPRECIATION EXPENSE - BLDG -
DEPRECIATION EXPENSE - EQUIPMENT -
TRANSPORTATION OUT 4,000.00
ADVERTISING EXPENSE 6,000.00
INTEREST EXPENSE 26,000.00
MISCELLANEOUS EXPENSE 7,000.00
6,969,246.00 6,969,246.00
a. Salaries in the amount of P51,000 have accrued on March 31
b. Insurance coverage with premiums of P2,000 have expired at month-end
c. Depreciation on the building and on the equipment for the month amounted to P9,000 and P12,000, res
d. Supplies on hand at month-end amounted to P14,000
e. A count of the merchandise inventory on March 31, 2019 amounted to P397,000
Supplies 72,000.00
On Hand 14,000.00 ASSET
Consumed 58,000.00 EXPENSE
nted to P9,000 and P12,000, respectively
**At the time of Adj. Phase Margaux Mojica Trading
Worksheet
March 31, 2019
Unadjusted Trial Balance Adjustments

Dr Cr Dr
CASH 158,906.00
MERCHANDISE INVENTORY, beg. 413,000.00
SUPPLIES 72,000.00
LAND 460,000.00
BUILDING 1,750,000.00
SALARIES PAYABLE -
SALES 1,262,000.00
SALARIES EXPENSE 51,000.00 a. 51,000.00
SUPPLIES EXPENSE - d. 58,000.00
INSURANCE EXPENSE - b. 2,000.00
DEPRECIATION EXPENSE - BLDG - c. 9,000.00
DEPRECIATION EXPENSE - EQUIPMENT - c. 12,000.00
MERCHANDISE INVENTORY, end. e. 397,000.00
INCOME SUMMARY
6,969,246.00 6,969,246.00 529,000.00

- -
x Mojica Trading
ch 31, 2019
Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Cr Dr Cr Dr Cr Dr
158,906.00 158,906.00
428,000.00 428,000.00
413,000.00 413,000.00
d. 58,000.00 14,000.00 14,000.00
b. 2,000.00 46,000.00 46,000.00
460,000.00 460,000.00
1,750,000.00 1,750,000.00
c. 9,000.00 359,000.00
2,310,000.00 2,310,000.00
c. 12,000.00 642,000.00
526,000.00
a. 51,000.00 51,000.00
2,600,000.00
1,569,000.00
400,000.00 400,000.00
1,262,000.00 1,262,000.00
141,000.00 141,000.00
11,840.00 11,840.00
669,500.00 669,500.00
25,196.00 25,196.00
7,050.00 7,050.00
13,000.00 13,000.00
102,000.00 102,000.00
58,000.00 58,000.00
2,000.00 2,000.00
9,000.00 9,000.00
12,000.00 12,000.00
4,000.00 4,000.00
6,000.00 6,000.00
26,000.00 26,000.00
7,000.00 7,000.00
397,000.00 397,000.00
e. 397,000.00 397,000.00 397,000.00
529,000.00 7,438,246.00 7,438,246.00 1,474,340.00 1,691,246.00 5,963,906.00

Net Income 216,906.00
1,691,246.00 1,691,246.00 5,963,906.00
Balance Sheet
Cr
359,000.00
642,000.00
526,000.00
51,000.00
2,600,000.00
1,569,000.00
1,063,254.00
5,747,000.00
216,906.00
5,963,906.00
**At the time of Closing Entry Margaux Mojica Trading
Worksheet
March 31, 2019
Unadjusted Trial Balance Adjustments

Dr Cr Dr
CASH 158,906.00
SUPPLIES 72,000.00
LAND 460,000.00
BUILDING 1,750,000.00
SALARIES PAYABLE -
SALES 1,262,000.00
SALARIES EXPENSE 51,000.00 a. 51,000.00
SUPPLIES EXPENSE - d. 58,000.00
INSURANCE EXPENSE - b. 2,000.00
DEPRECIATION EXPENSE - BLDG - c. 9,000.00
DEPRECIATION EXPENSE - EQUIPMENT - c. 12,000.00
MERCHANDISE INVENTORY, end.
INCOME SUMMARY
6,969,246.00 6,969,246.00 132,000.00

x Mojica Trading
ch 31, 2019
Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Cr Dr Cr Dr Cr Dr
158,906.00 158,906.00
428,000.00 428,000.00
413,000.00 413,000.00
d. 58,000.00 14,000.00 14,000.00
b. 2,000.00 46,000.00 46,000.00
460,000.00 460,000.00
1,750,000.00 1,750,000.00
c. 9,000.00 359,000.00
2,310,000.00 2,310,000.00
c. 12,000.00 642,000.00
526,000.00
a. 51,000.00 51,000.00
2,600,000.00
1,569,000.00
400,000.00 400,000.00
1,262,000.00 1,262,000.00
141,000.00 141,000.00
11,840.00 11,840.00
669,500.00 669,500.00
25,196.00 25,196.00
7,050.00 7,050.00
13,000.00 13,000.00
102,000.00 102,000.00
58,000.00 58,000.00
2,000.00 2,000.00
9,000.00 9,000.00
12,000.00 12,000.00
4,000.00 4,000.00
6,000.00 6,000.00
26,000.00 26,000.00
7,000.00 7,000.00
397,000.00 397,000.00
132,000.00 7,041,246.00 7,041,246.00 1,474,340.00 1,691,246.00 5,963,906.00

Net Income 216,906.00
1,691,246.00 1,691,246.00 5,963,906.00
Balance Sheet
Cr
359,000.00
642,000.00
526,000.00
51,000.00
2,600,000.00
1,569,000.00
5,747,000.00
216,906.00
5,963,906.00
a. Salaries in the amount of P51,000 have accrued on Feb. 28
b. Insurance coverage with premiums of P2,000 have expired at month-end
c. Depreciation on the building and on the equipment for the month amounted to P9,000 and P12,000, res
d. Supplies on hand at month-end amounted to P14,000
e. A count of the merchandise inventory on Feb. 28, 2019 amounted to P397,000
a. Salaries Expense 51,000.00

Salaries Payable
b. Insurance Expense 2,000.00

Prepaid Insurance
c. Depreciation Expense - Building 9,000.00

Accumulated Depreciation - Building
Depreciation Expense - Equipment 12,000.00

Accumulated Depreciation - Equipment
d. Supplies Expense 58,000.00

Supplies
*In the assumption of Adjusting Entry Method

e. Merchandise Inventory, end 397,000.00
Income Summary
nted to P9,000 and P12,000, respectively
ACCRUAL Can be reversed

51,000.00 Inc. in Liability
DEFERRAL - Asset Method X

2,000.00 Dec. in Asset
X
9,000.00
X
12,000.00
72,000.00 DEFERRAL - Asset Method X

58,000.00 (14,000.00) asset Dec. in Asset
58,000.00 expense
397,000.00
General Ledger
March 31, 2019
CASH
3/1 33,000.00 3/4 62,080.00 3/4
3/1 113,000.00 3/7 6,000.00 3/8
3/7 180,000.00 3/8 164,900.00 3/28
3/12 196,000.00 3/9 4,000.00 3/30
3/23 380,160.00 3/14 26,000.00
3/31 196.00 3/15 51,000.00
3/19 21,000.00
3/22 7,000.00
3/28 400,000.00
3/30 1,470.00
902,356.00 743,450.00
158,906.00
ACCOUNTS RECEIVABLE
3/1 192,000.00 3/1 113,000.00
3/5 270,000.00 3/10 70,000.00
3/16 392,000.00 3/12 200,000.00
3/25 420,000.00 3/18 4,000.00
3/23 388,000.00
3/26 71,000.00
1,274,000.00 846,000.00
428,000.00
MERCHANDISE INVENTORY
3/1 413,000.00
413,000.00
SUPPLIES
3/1 51,000.00
3/19 21,000.00
Unadj. Bal 72,000.00
3/31 58,000.00
Adj. Bal 14,000.00
PREPAID INSURANCE
3/1 48,000.00
Unadj. Bal 48,000.00

3/31 2,000.00
Adj. Bal 46,000.00
LAND
3/1 460,000.00
460,000.00
BUILDING
3/1 1,750,000.00
1,750,000.00
AD- BUILDING
3/1 350,000.00
Unadj. Bal 350,000.00

3/31 9,000.00
Adj Bal. 359,000.00
EQUIPMENT
3/1 2,310,000.00
2,310,000.00
AD - EQUIPMENT
3/1 630,000.00
Unadj. Bal 630,000.00

3/31 12,000.00
Adj. Bal 642,000.00
MERCHANDISE INVENTORY, end
3/31 397,000.00
Adj. Bal 397,000.00
INCOME SUMMARY
3/31 397,000.00
Adj. Bal 397,000.00

ACCOUNTS PAYABLE MOJICA, CAPITAL
64,000.00 3/1 108,000.00 3/1 1,569,000.00
170,000.00 3/4 170,000.00
25,000.00 3/20 125,000.00
1,500.00 3/24 373,000.00
3/24 9,000.00 1,569,000.00
3/29 1,500.00
260,500.00 786,500.00
526,000.00
SALARIES PAYABLE MOJICA, WITHDRAWALS

Unadj Bal - 3/28 400,000.00
3/31 51,000.00
400,000.00
Adj. Bal 51,000.00
MORTGAGE PAYABLE SALES

3/1 2,600,000.00 3/5 270,000.00
3/7 180,000.00
3/16 392,000.00
3/25 420,000.00
2,600,000.00
1,262,000.00
SALES RETURNS & ALLOWANCES

3/10 70,000.00
3/26 71,000.00
141,000.00
SALES DISCOUNTS
3/12 4,000.00
3/23 7,840.00
11,840.00
PURCHASES
3/4 170,000.00
3/20 125,000.00
3/24 373,000.00
3/29 1,500.00
669,500.00
PURCHASE RETURNS & ALLOWANCES
3/28 25,000.00
3/31 196.00
25,196.00
PURCHASE DISCOUNTS
3/4 1,920.00
3/8 5,100.00
3/30 30.00
7,050.00
TRANSPORTATION IN
3/9 4,000.00
3/24 9,000.00
13,000.00
SALARIES EXPENSE
3/15 51,000.00
Unadj Bal 51,000.00

51,000.00
Adj Bal. 102,000.00
SUPPLIES EXPENSE
Unadj. Bal -
3/31 58,000.00
Unadj. Bal. 58,000.00
INSURANCE EXPENSE
Unadj Bal -
3/31 2,000.00
Adj. Bal 2,000.00
DEPRECIATION EXPENSE - BLDG

Unadj. Bal -
3/31 9,000.00
Adj. Bal 9,000.00
DEPRECIATION EXPENSE - EQUIPMENT

Unadj. Bal -
3/31 12,000.00
Adj. Bal 12,000.00
TRANSPORTATION OUT
3/18 4,000.00
4,000.00
ADVERTISING EXPENSE
3/7 6,000.00
6,000.00
INTEREST EXPENSE
3/14 26,000.00
MISCELLANEOUS EXPENSE
3/22 7,000.00
7,000.00
**At the time of Adj Entry Margaux Mojica Trading
Adjusted Trial Balance
March 31, 2019

Dr Cr
CASH 158,906.00
SUPPLIES 14,000.00
LAND 460,000.00
BUILDING 1,750,000.00
SALARIES PAYABLE 51,000.00
SALES 1,262,000.00
SUPPLIES EXPENSE 58,000.00
INSURANCE EXPENSE 2,000.00
DEPRECIATION EXPENSE - BLDG 9,000.00
DEPRECIATION EXPENSE - EQUIPMENT 12,000.00
MERCHANDISE INVENTORY, end. 397,000.00
INCOME SUMMARY 397,000.00
7,438,246.00 7,438,246.00
**At the time of Closing Entry Margaux Mojica Trading
March 31, 2019

Dr Cr
CASH 158,906.00
SUPPLIES 14,000.00
LAND 460,000.00
BUILDING 1,750,000.00
SALES 1,262,000.00
7,041,246.00 7,041,246.00
aux Mojica Trading
sted Trial Balance
March 31, 2019
*Multi-Step
*Assumung salaries pertain to sales officers
*Assuming insurance, supplies, depreciation pertains to admin

Statement of Financial Performance
For the month ended March 31, 2019
Sales
Less: Sales Discounts (11,840.00)
Sales Returns and Allowances (141,000.00)
Net Sales
Cost of Goods Sold
Beg. Inventory 413,000.00
Purchases 669,500.00
Less: Purchase Discounts (7,050.00)
Purchase Returns and Allowances (25,196.00)
Total Goods Available for Sale 1,063,254.00
Less: Ending Inventory (397,000.00)
Gross Profit
Operating Expenses
Administrative Expenses
Supplies Expense 58,000.00
Insurance Expense 2,000.00
Selling Expenses
Total Operating Expenses
Operating Income
Non-Operating Income -
Non-Operating Expense
Total Non-Operating Income (Expense)
Net Income
1,262,000.00
152,840.00
1,109,160.00
666,254.00
442,906.00
88,000.00
112,000.00
200,000.00
242,906.00
(26,000.00)
216,906.00
Statement of Changes in Equity
For the month ended March 31, 2019
Mojica, Owner's Equity, 3/1/19 1,569,000.00

Add: Additional Investments -
Net Profit 216,906.00
Total 1,785,906.00
Less: Withdrawals 400,000.00
Mojica, Owner's Equity, 3/31/19 1,385,906.00
Statement of Financial Position
March 31, 2019
ASSETS
Current Assets
CASH 158,906.00
SUPPLIES 14,000.00
Total Current Assets
Non-Current Assets
LAND 460,000.00
BUILDING 1,750,000.00
Accumulated Depreciation - Building (359,000.00)
1,391,000.00
Accumulated Depreciation -Equipment (642,000.00)
1,668,000.00
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Total Current Liabilities
Non-Current Liabilities
Total Non-Current Liabilities
Total Liabilties
OWNER'S EQUITY
Mojica, Capital
Total Liabilities and Owner's Equity
n
ETS
1,043,906.00
3,519,000.00
4,562,906.00
LITIES
577,000.00
2,600,000.00
3,177,000.00
S EQUITY
1,385,906.00
4,562,906.00
CLOSING ENTRIES
** Ending Inventory (Periodic Inventory System / if Adjustments are made at the closing phase)
Beginning Inventory (Periodic Inventory System)
Expenses
Revenues
Income Summary
Withdrawals
Purchase Discount
Purchase Returns and Allowances
Freight In
Sales Discounts
Sales Returns and Allowances
**In the assumption of Closing Entry Method

Merchandise Inventory, end 397,000.00
Income Summary 397,000.00
Close Beginning Inventory to Income Summary Account
Income Summary 413,000.00

Merchandise Inventory, beg. 413,000.00
Close Income/Revenue Accounts

SALES 1,262,000.00
INCOME SUMMARY 1,109,160.00
Close Expense Accounts

Close Income Summary
MOJICA, CAPITAL 216,906.00
Close Withdrawals Account

MOJICA, CAPITAL 400,000.00
the closing phase)
INCOME SUMMARY
413,000.00 397,000.00
876,254.00 1,109,160.00
1,289,254.00 1,506,160.00
216,906.00 216,906.00
-
MOJICA, CAPITAL
400,000.00 Adj.Bal 1,569,000.00
216,906.00
400,000.00 1,785,906.00
1,385,906.00
Post-Closing Trial Balance
March 31, 2019
CASH 158,906.00
SUPPLIES 14,000.00
LAND 460,000.00
BUILDING 1,750,000.00
MOJICA,CAPITAL 1,385,906.00
5,563,906.00 5,563,906.00
*OPTIONAL
Reverse Adjusting Entries that are:

Accruals:
Accrued Expense
Accrued Revenue
Deferrals if:
Expense Method
Income Method
OR Generally, Adjusting Entries that INCREASED ASSET OR LIABILITY
REVERSING ENTRY if the business opted to reverse

Salaries Payable 51,000.00
Assuming the business did not opted to reverse

No Reversing Entry

Margaux Mojica Trading Solution - Reversing Entries

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Margaux Mojica Trading Solution - Reversing Entries

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Assume using PERIODIC Inventory System, Gross Method, Gross Profit Ratio is 30%

YES Buyer's Perspective

10 Sales Returns & Allowances

YES Seller's Perspective

YES Buyer's Perspective 24 Transportation In

26 Sales Returns & Allowances

Accounts Payable 64,000.00

Accounts Receivable 270,000.00

Advertising Expense 6,000.00

Accounts Payable 170,000.00

Sales Returns & Allowances 70,000.00

Interest Expense 26,000.00

Salaries Expense 51,000.00

Accounts Receivable 392,000.00

Transportation Out 4,000.00

Miscellaneous Expense 7,000.00

Accounts Receivable 420,000.00

Sales Returns & Allowances 71,000.00

Mojica, Withdrawals 400,000.00

Accounts Payable 25,000.00

Accounts Payable 1,500.00

392,000*98% less 4,000 392,000.00

SALARIES PAYABLE MOJICA, WITHDRAWALS

MORTGAGE PAYABLE SALES

SALES RETURNS & ALLOWANCES

DEPRECIATION EXPENSE - BLDG

DEPRECIATION EXPENSE - EQUIPMENT

Unadjusted Trial Balance Adjustments

6,969,246.00 6,969,246.00 529,000.00

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

529,000.00 7,438,246.00 7,438,246.00 1,474,340.00 1,691,246.00 5,963,906.00

Unadjusted Trial Balance Adjustments

6,969,246.00 6,969,246.00 132,000.00

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

132,000.00 7,041,246.00 7,041,246.00 1,474,340.00 1,691,246.00 5,963,906.00

a. Salaries Expense 51,000.00

b. Insurance Expense 2,000.00

c. Depreciation Expense - Building 9,000.00

Depreciation Expense - Equipment 12,000.00

d. Supplies Expense 58,000.00

*In the assumption of Adjusting Entry Method

ACCRUAL Can be reversed

DEFERRAL - Asset Method X

72,000.00 DEFERRAL - Asset Method X

Unadj. Bal 48,000.00

Unadj. Bal 350,000.00

Unadj. Bal 630,000.00

MERCHANDISE INVENTORY, end

Adj. Bal 397,000.00

Adj. Bal 397,000.00

SALARIES PAYABLE MOJICA, WITHDRAWALS

MORTGAGE PAYABLE SALES

SALES RETURNS & ALLOWANCES

Unadj Bal 51,000.00

Adj Bal. 102,000.00

Unadj. Bal. 58,000.00

DEPRECIATION EXPENSE - BLDG

DEPRECIATION EXPENSE - EQUIPMENT

Adjusted Trial Balance

Adjusted Trial Balance