Joseph Landscaping and Plant Store

Trial Balance NOTES

November 30, 2023 Sold Merchandise = SALES
Note = NOTES RECEIVABLE
Account Title Debit Credit Purchased = PURCHASES
Cash in Bank P 95,000 Rendered service = SERVICE INCOME
Petty Cash Fund 10,000 Down Payment = CASH IN BANK , ACCS RECEIVABLE
Financial Assets at Fair Value through Profit or Loss 100,000 FOB Destination point = FREIGHT OUT, CASH
Accounts Receivable 95,000 FOB Shipping point = FREIGHT IN, CASH
Allowance for Doubtful Accounts 7,000 Debit Memorandum = PURCHASE RETURNS AND ALLOWANCES, (eithe
Merchandise Inventory, January 1 17,800 Investment = CAPITAL (either CASH IN BANK - money, or PURCHASES -
Office Supplies on Hand 10,500 Credit Memorandum = SALES RETURNS AND ALLOWANCES, (either CA
Store Supplies on Hand 15,000 Partial Payment = CASH IN BANK, ACCOUNTS PAYABLE
Land 400,000 Purchased store/office supplies = Cash in Bank, Accounts Payable - rem
Buildings 440,000 Paid account in full = ACCOUNTS PAYABLE, CASH IN BANK
Accumulated Depreciation-Building P 57,600
Equipment 220,000 SALES DISCOUNT = if has terms #/#, n/#
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 842,950
Joseph de Jesus, Drawing 10,000
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and Allowances 12,500
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and Allowances 14,700
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700 P 2,197,700

Assume the value of:

Merchandise Inventory, November 30 14,500
 S RECEIVABLE

URNS AND ALLOWANCES, (either CASH - paid, ACCOUNTS PAYABLE - remaining balance)
BANK - money, or PURCHASES - merchandise)
NS AND ALLOWANCES, (either CASH - fully paid, ACCOUNTS RECEIVABLE - remaining balance)
OUNTS PAYABLE
h in Bank, Accounts Payable - remaining balance
ABLE, CASH IN BANK
Date Account Titles and Explanation P/R Debit Credit
Dec. 1 Notes Receivable 105 20,000
Sales 502 20,000
Received 3-month, 12% note for merchandise sold.

2 Purchases 25,000
Cash in Bank 10,000
Accounts Payable-Stephen Trading 15,000
2/10, n/30.

2 Freight In 800
Cash in Bank 800
FOB Shipping Point, Collect

3 Cash in Bank 15,000

Accounts Receivable-Guadalupe's Garden 15,000
Service Income 30,000
Rendered landscaping services to Guadalupe's Garden

4 Cash in Bank 20,000

Accounts Receivable -Emmanuel Merchandising 50,000
Sales 70,000
2/10, 1/15, n/30.

4 Freight Out 1,200

Cash in Bank 1,200
FOB Destination Point, Prepaid.

5 Accounts Payable-Stephen Trading 500

Purchase Returns and Allowances 500
Issued DM.

6 Purchases 20,000
Joseph De Jesus, Capital 20,000
Additional investment.

7 Sales Returns and Allowances 1,000

Accounts Receivable-Emmanuel Merchandising 1,000
 Issued CM.

8 Cash in Bank 50,000

Sales 50,000
Sold merchandise, COD

9 Accounts Payable-Stephen Trading 5,000

Cash in Bank 5,000
Made partial payment.

10 Office Supplies 5,000

Store Supplies 10,000
Cash in Bank 5,000
Accounts Payable-Gabriel Supermart 10,000
2/10, n/30

12 Accounts Payable-Stephen Trading 9,500

Purchase Discount 190
Cash in Bank 9,310
Settled account in full.

15 Joseph De Jesus, Drawing 8,000

Purchases 8,000
Personal withdrawal of owner.

17 Accounts Payable-Gabriel Supermart 500

Store Supplies 500
Returned defective supplies.

19 Cash in Bank 48,510

Sales Discount 490
Accounts Receivable-Emmanuel Merchandising 49,000
Collected account in full.

20 Accounts Payable-Gabriel Supermart 9,500 9,500 x 0.02 = 190 (payable x discount)

Office Supplies 59 190 / 45000 * 14500 (payable x discount) / office supplies total * purch
Store Supplies 131 190 / 10000 * 14500 (payable x discount) / store suuplies * purchasee t
Cash in Bank 9,310
Settled account in full.
26 Sales Returns and Allowances 1,000
Cash in Bank 1,000
Returned defective merchandise sold.

28 Accounts Receivable-Shalom House of Prayer 50,000

Service Income 50,000
Rendered landscaping services to Shalom.

31 Cash in Bank 15,000

Accounts Receivable-Guadalupe's Garden 15,000
ffice supplies total * purchase total
ore suuplies * purchasee total
 Cash Joseph de Jesus, Capital Purchases
95,000 842,950 325,000 8,000
15,000 10,000 20,000 25,000
20,000 800 20,000
50,000 1,200 862,950
48,510 5,000 862,950 362,000
15,000 5,000
9,210
9,310 Joseph de Jesus, Drawing
1,000 10,000 Freigh in
243,510 41,520 8,000 6,850
201,990 18,000 800
7,650
Sales
Notes Receivable 776,850 Freight out
20,000 20,000 9,500
70,000 1,200
20,000 50,000 10,700
916,850

Accounts Receivable Sales Returns and Allowances Purchase Returns and Allowances
95,000 1,000 12,500 14,700
15,000 49,000 1,000 500
50,000 15,000 1,000 15,200
50,000 14,500

210,000 65,000 Sales Discount Purchase Discount

145,000 15,000 10,000
 490 290
15,490 10,290
Office Supplies on Hand
10,500
131
10,000 Service Income
20,500 131 140,000
20,369 30,000
50,000
220,000
Store Supplies on Hand
15,000
500
5,000 59
559
19,441

Accounts Payable
500 37,000
5,000 15,000
9,500 10,000
500
9,500

25,000 62,000

37,000
 Joseph Landscaping and Plant Store
Trial Balance
November 30, 2023

Account Title Debit Credit

Cash in Bank P 95,000
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 95,000
Allowance for Doubtful Accounts 7,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 10,500
Store Supplies on Hand 15,000
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building P 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 842,950
Joseph de Jesus, Drawing 10,000
Service Income 140,000
Sales 776,850
Sales Discounts 15,000
Sales Returns and Allowances 12,500
Purchases 325,000
Purchases Discounts 10,000
Purchases Returns and Allowances 14,700
Freight in 6,850
Freight out 9,500
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense
16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Total P 2,197,700 P 2,197,700

Assume the value of:

Merchandise Inventory, November 30 14,500
 Joseph Landscaping And Plant Store
Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Investments in Trading Securities 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 7,000
Notes Receivable 20,000
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 20,369
Store Supplies on Hand 19,441
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 57,600
Equipment 220,000
Accumulated Depreciation-Equipment 50,000
Furniture and Fixture 120,000
Accumulated Depreciation – Furniture 44,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Insurance Expense 28,450
Utilities Expense 26,000
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Miscellaneous Expense 12,400
Interest Expense 6,400
Totals ### ###
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Unadjusted Adjusted Income Statement of
Trial balance Adjustments Trial balance Statement Financial Position
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit
Cash in Bank 201,990 201,990 201,990
Petty Cash Fund 10,000 10,000 10,000
Financial Assets at FV through Profit or Loss 100,000 100,000 100,000
Accounts Receivable 145,000 145,000 145,000
Allowance for Doubtful Accounts 7,000 4,600 11,600
Notes Receivable 20,000 20,000 20,000
Interest Receivable 200 200 200
Merchandise Inventory, January 1 17,800 17,800 17,800 12,850 12,850
Office Supplies on Hand 20,369 14,080 6,289 6,289
Store Supplies on Hand 19,441 14,500 4,941 4,941
Land 400,000 400,000 400,000
Buildings 440,000 440,000 440,000
Accumulated Depreciation - Building 57,600 28,800 86,400
Equipment 220,000 220,000 220,000
Accumulated Depreciation - Equipment 50,000 25,000 75,000
Furniture and Fixture 120,000 120,000 120,000
Accumulated Depreciation - Furniture 44,000 22,000 66,000
Accounts Payable 37,000 37,000
Notes Payable 12,000 12,000
Withholding Taxes Payable 5,600 5,600
Utilities Payable 7,200 7,200
Interest Payable 330 330
Mortgage Payable 200,000 200,000
Joseph de Jesus, Capital 862,950 862,950
Joseph de Jesus, Drawing 18,000 18,000 18,000
Service Income 220,000 220,000 220,000
Sales 916,850 916,850 916,850
Sales Discounts 15,490 15,490 15,490
Sales Returns and Allowances 14,500 14,500 14,500
Interest Income 200 200 200
Purchases 362,000 362,000 362,000
Purchases Discounts 10,290 10,290 10,290
Purchases Returns and Allowances 15,200 15,200 15,200
Freight in 7,650 7,650 7,650
Freight out 10,700 10,700 10,700
Salaries and Wages Expense 194,000 194,000 194,000
Depreciation Expense 75,800 75,800 75,800
Utilities Expense 26,000 7,200 33,200 33,200
Insurance Expense 28,450 28,450 28,450
Office Supplies Expense 14,080 14,080 14,080
Store Supplies Expense 14,500 14,500 14,500
Repairs and Maintenance Expense 16,750 16,750 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550 11,550 11,550
Doubtful Accounts Expense 4,600 4,600 4,600
Miscellanous Expense 12,400 12,400 12,400
Interest Expense 6,400 330 6,730 6,730
Total 2,438,490 2,438,490 116,710 116,710 2,526,620 2,526,620 840,200 1,175,390 1,699,270
Net Income 335,190
1,175,390 1,175,390 1,699,270
 Statement of
Financial Position
Credit

11,600

86,400

75,000

66,000
37,000
12,000
5,600
7,200
330
200,000
862,950
1,364,080
335,190
1,699,270
 ADJUSTING ENTRIES Posting to T-Accounts
(a) Interest Receivable 200
Interest Income 200 Allowance for Doubtful Accounts
7,000
(b) Utilities Expense 7,200 4,600
Utilities Payable 7,200 11,600

(c) Interest Expense 330 Merchandise Inventory

Interest Payable 330 17,800 17,800
12,850
(d) Office Supplies Expense 14,080 12,850
Store Supplies Expense 14,500
Office Supplies on Hand 14,080 Office Supplies on Hand
Store Supplies on Hand 14,500 20,369 14,080

(e) Doubtful Accounts Expense 4,600 6,289

Allowance for Doubtful Accounts 4,600
Accumulated Depreciation - Equipment
(f) Depreciation Expense 28,800 50,000
Accumulated Depreciation - Building 28,800 25,000
75,000
Depreciation Expense 25,000
Accumulated Depreciation - Equipment 2,500 Utilities Payable
7,200
Depreciation Expense 22,000
Accumulated Depreciation - Furniture 22,000 7,200

Interest Income
200
COMPOUND entry
(f) Depreciation Expense 75,800 200
Accumulated Depreciation - Building 28,800
Accumulated Depreciation - Equipment 25,000 Utilities Expense
Accumulated Depreciation - Furniture 22,000 26,000
7,200
(i) Merchandise Inventory 12,850 33,200
Income Summary 12,850
Store Supplies Expense
14,500

14,500

Doubtful Accounts Expense

4,600

4,600

Depreciation Expense - Equipment

25,000

25,000
Posting to T-Accounts

Interest Receivable
200

200

Store Supplies on Hand

19,441 14,500

4,941

Accumulated Depreciation - Building

57,600
28,800
86,400

Accumulated Depreciation - Furniture

44,000
22,000
66,000

Interest Payable
330

330

Income Summary
7,800 12,850
 12,850

Interest Expense
6,400
330
6,730

Office Supplies Expense

14,080

14,080

Depreciation Expense - Building

28,800

28,800

Depreciation Expense - Furniture

22,000

22,000
 Joseph Landscaping And Plant Store
Adjusted Trial Balance
December 31, 2023
Account Title Debit Credit
Cash in Bank 201,990
Petty Cash Fund 10,000
Financial Assets at FV through Profit or Loss 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory, January 1 17,800
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Land 400,000
Buildings 440,000
Accumulated Depreciation - Building 86,400
Equipment 220,000
Accumulated Depreciation - Equipment 75,000
Furniture and Fixture 120,000
Accumulated Depreciation - Furniture 66,000
Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Mortgage Payable 200,000
Joseph de Jesus, Capital 862,950
Joseph de Jesus, Drawing 18,000
Service Income 220,000
Sales 916,850
Sales Discounts 15,490
Sales Returns and Allowances 14,500
Interest Income 200
Purchases 362,000
Purchases Discounts 10,290
Purchases Returns and Allowances 15,200
Freight in 7,650
Freight out 10,700
Salaries and Wages Expense 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Store Supplies Expense 14,500
Repairs and Maintenance Expense 16,750
SSS, Philhealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellanous Expense 12,400
Interest Expense 6,730
Total 2,526,620 2,526,620
 Joseph Landscaping and Plant Store
Statement of Financial Position
December 31, 2023
ASSETS
Current Assets
Cash (Note 5) 211,990
Financial Assets at FV throught Profit or Loss 100,000
Trade and other receivables (Note 6) 153,600
Merchandise Inventory 12,850
Prepaid Expenses (Note 7) 11,230 489,670

Non-Current Assets
Property, Plant and Equipment (Note 8) 952,600
Total Assets 1,442,270

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and other payables (Note 9) 62,130
Non-Current Liabilities
Mortgage Payable 200,000
Total Liabilities 262,130

Owner's Equity
Joseph de Jesus, Capital 1,180,140
Total Liabilities and Owner's Equity 1,442,270
 Notes to the Financial Statement
Note 5: Cash
Cash in Bank 201,990
Petty Cash Fund 10,000
Total Cash 211,990

Note 6: Trade and other receivables

Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600 133,400
Notes Receivable 20,000
Interest Receivable 200
Total Trade and other receivables 153,600

Note 7: Prepaid Expenses

Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Total Prepaid Expenses 11,230

Note 8: Property, Plant and Equipment

Land 400,000
Buildings 440,000
Less: Accumulated Depreciation 86,400 353,600
Equipment 220,000
Less: Accumulated Depreciation 75,000 145,000
Furniture and Fixture 120,000
Less: Accumulated Depreciation 66,000 54,000
952,600

Note 9: Trade and other payables

Accounts Payable 37,000
Notes Payable 12,000
Withholding Taxes Payable 5,600
Utilities Payable 7,200
Interest Payable 330
Total trade and other payables 62,130
 Joseph Landscaping and Plant Store
Income Statement
For the year ended December 31, 2023

Note
Net sales revenue 1 P 1,106,860
Cost of sales 2 349,110
Gross profit P 757,750
Interest Income 200
Gross profit and other income P 757,950
Operating expenses:
Administrative expenses 3 P 390,830
Distribution expenses 4 25,200
Interest Expense 6,730 422,760
Net income P 335,190

Joseph Landscaping and Plant Store

Statement of Changes in Owner's Equity
For the year ended December 31, 2023

Joseph de Jesus, Capital P 862,950

Add: Net Income 335,190
Sub-total P 1,198,140
Less: Joseph de Jesus, Drawing 18,000
Joseph de Jesus, Capital P 1,180,140
Note 1: Net Sales Revenue and Service Income
Service Income P 220,000
Sales P 916,850
Less: Sales and Allowances 15,490
Sales Discount 14,500 886,860
Net sales revenue and Service Income P 1,106,860

Note 2: Cost of sales

Merchandise Inventory, January 1 P 17,800
Add: Net cost of purchases
Purchases P 362,000
Less: Purchase Returns & Allowances 15,200
Purchase Discounts 10,290
Net Purchases P 336,510
Add: Freight in 7,650 344,160
Cost of goods available for sale P 361,960
Less: Merchandise Inventory, end 12,850
Cost of sales P 349,110

Note 3: Administrative expenses

Salaries and Wages Expense P 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Repairs and Maintenance Expense 16,750
Office Supplies Expense 14,080
SSS, Philhealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellanous Expense 12,400
Total administrative expenses P 390,830

Note 4: Distribution expenses

Store Supplies Expense P 14,500
Freight out 10,700
Total distribution expenses P 25,200
 Joseph Landscaping and Plants Store
Statement of Cash Flows
For the year ended December 31, 2023
Cash flows from operating activities
Inflow
Cash Sales 518,895
Cash advance from customer
Cash from landscaping services 170,000
Collections on accounts receivable 172,965 861,860
Outflow
Payment of account purchases 336,510
Cash advance given on employee
Payment of various operating expenses 336,080
Interest Expense 6,400 (687,990)
Net cash from operating activities 182,870

Cash flows from financing activities

Outflow
Partial payment of bank loan (part of mortgage payable) (100,000)
Net increase in Cash in Bank 82,870
Cash in Bank, January 1 119,120
Cash in Bank, December 31 201,990
 Recall that Merchandise Inventory, December 31 was recorded as part of the adjusting entry shown as follows:
Dec. 31 Merchandise Inventory, December 31 12,850
Income Summary 12,850
To record adjustment for ending balance of inventory. Income Summary
Cost and Expense 840,200 12,850
The following closing entries used the INDIRECT METHOD. Drawing 335,190 1,162,540
1,175,390 1,175,390
Dec. 31 Service Income 220,000
Sales 916,850
Interest Income 200 Joseph de Jesus, Drawing
Purchase Discounts 10,290 Account Balance 18,000 335,190
Purchase Returns and Allowancces 15,200 Close to Capital 317,190
Income Summary 1,162,540 335,190 335,190
Close all nominal accounts with CREDIT balances.

Dec. 31 Income Summary 840,200 Joseph de Jesus, Capital

Merchandise Inventory, January 1 17,000 882,950
Sales Discounts 15,490 317,190
Sales Returns and Allowances 14,500 1,200,140
Purchases 362,000
Freight In 7,650
Freight Out 10,700
Salaries Wages and Expense 194,000
Depreciation Expense 75,800
Utilities Expense 33,200
Insurance Expense 28,450
Office Supplies Expense 14,080
Store Supplies Expense 14,500
Repairs and Maintenance Expense 16,750
SSS,PhilHealth, and Pag-ibig Expense 11,550
Doubtful Accounts Expense 4,600
Miscellaneous Expense 12,400
 Interest Expense 6,730
Close all nominal accounts with DEBIT balances.

Dec. 31 Income Summary 335,190

Joseph De Jesus, Drawing 335,190
Close Income Summary account to drawing account.

Joseph De Jesus, Drawing 317,190

Joseph De Jesus, Capital 317,190
Close Drawing account to Capital account.
 rchandise Inventory, end
ome & Contra Purchases

Income Summary

Balance
Close Drawing
Balance, END
 Joseph Landscaping And Plant Store
Post-Closing Trial Balance
December 31, 2019
Account Title Debit Credit
Cash in Bank 201,900
Petty Cash Fund 10,000
Financial Assets at Fair Value through Profit or Loss 100,000
Accounts Receivable 145,000
Allowance for Doubtful Accounts 11,600
Notes Receivable 20,000
Interest Receivable 200
Merchandise Inventory, January 1 12,850
Office Supplies on Hand 6,289
Store Supplies on Hand 4,941
Land 400,000
Buildings 440,000
Accumulated Depreciation-Building 86,400
Equipment 220,000
Accumulated Depreciation-Equipment 75,000
Furniture and Fixture 120,000
Accumulated Depreciation-Furniture 66,000
Accounts Payable 37,000
Notes Payable 12,000
Withholing Taxes Payable 5,600
Utilities Payable 7,200
Interst Payable 330
Mortgage Payable 200,000
Joseph De Jesus, Capital 1,180,140
Total 1,681,180 1,681,270
 REVERSING ENTRIES
January 1, 2020
(a) Interest Income 200
Interest Receivable 200

(b) Utilities Payable 7,200

Utilities Expense 7,200

(c) Interest Payable 330

Interest Expense 330