Erik Torsten Hardwares

Worksheet
for the month ended November 30, 2022

UNADJUSTED ADJUSTED STATEMENT OF STATEMENT OF

ACCOUNT NAMES TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE PROFIT OR LOSS FINANCIAL POSITION
DR CR DR CR DR CR DR CR DR CR
Cash 455,263 455,263 455,263
Accounts Receivable 75,000 75,000 75,000
Allowance for Doubtful Accounts 1,500 750 2,250 2,250
Commissions Receivable 8,000 8,000 8,000
Merchandise Inventory 150,000 130,000 150,000 130,000 130,000
Store Supplies 17,000 12,000 5,000 5,000
Prepaid Insurance Expense 90,000 15,000 75,000 75,000
Equipment 230,000 230,000 230,000
Accumulated Depreciation - Equipment 13,800 17,250 31,050 31,050
Furniture 180,000 180,000 180,000
Accumulated Depreciation - Furniture 15,000 33,750 33,750
Accounts Payable 46,500 18,750 46,500 46,500
Notes Payable 150,000 150,000 150,000
Interest Payable 225 225 225
Utilities Payable 23,000 23,000 23,000
Unearned Sales Revenue 53,600 23,600 30,000 30,000
Torsten, Capital 837,200 837,200 837,200
Torsten, Drawing 16,000 16,000 16,000
Income Summary 150,000 130,000 150,000 130,000 150,000 130,000
Sales 332,100 23,600 355,700 355,700
Sales Returns and Allowances 6,000 6,000 6,000
Sales Discounts 2,122 2,122 2,122
Commissions Income 8,000 8,000 8,000
Purchases 147,000 147,000 147,000
Freight-In 2,000 2,000 2,000
Purchase Returns and Allowances 7,500 7,500 7,500
Purchase Discounts 2,985 2,985 2,985
Cleaning Services Expense 15,000 15,000 15,000
Freight-Out 1,800 1,800 1,800
Insurance Expense 15,000 15,000 15,000
Interest Expense 225 225 225
Rent Expense 30,000 30,000 30,000
Salaries Expense 43,000 43,000 43,000
Store Supplies Expense 12,000 12,000 12,000
Utilities Expense 23,000 23,000 23,000
Depreciation Expense – Equipment 17,250 17,250 17,250
Depreciation Expense – Furniture 18,750 18,750 18,750
Doubtful Accounts Expense 750 750 750
Total 1,460,185 1,460,185 398,575 398,575 1,658,160 1,658,160 483,897 504,185 1,174,263 1,153,975
Net Income - - - 20,288 20,288
Total 504,185 504,185 1,174,263 1,174,263
 Erik Torsten Hardwares
Statement of Profit or Loss
For the month ended November 30, 2022
Note
Net Sales Revenue 1 P 347,578
Cost of Sales 2 -158,515
Gross profit P 189,063
Other Income 3 8,000
Total Income P 197,063
Operating Expenses
Distribution expense 4 P 63,600
Administrative expense 5 112,950
Finance Cost 6 225 -176,775
Net Income P 20,288
 Erik Torsten Hardwares
Statement of Changes in Equity
For the month ended November 30, 2022

Torsten, Capital July 1 P 837,200

Net Income 20,288
Sub-total P 857,488
Torsten, Drawing -16,000
Torsten, Capital November 30 P 841,488

20288

837200
16,000
 Erik Torsten Hardwares
Statement of Financial Position 455263
As of November 30, 2022

Assets
Note 130000
Current assets
Cash P 455,263
Trade and other receivables 7 80,750
Merchandise Inventory 130,000
Prepaid Expense 8 80,000 P 746,013

Non-Current assets
Property, Plant and Equipment 9 345,200
Total Assets P 1,091,213

Liabilities and Owner's Equity

Current Liabilities
Trade and Other Payables 10 P 249,725
Total Liabilities P 249,725

Owner's Equity
Torsten, Capital 841,488

Total Liabilities and Owner's Equity P 1,091,213

Note 1 Net Sales
Sales P 355,700
Less: Sales Discounts P 2,122
Sales Returns and Allowances 6,000 8,122
Net Sales P 347,578

Note 2 Cost of Sales

Merchandise Inventory, Beginning P 150,000
Add: Net cost of purchases
Purchases P 147,000
Less: Purchase Discounts P 2,985
Purchase Returns and Allowances 7,500 10,485
Net purchases P 136,515
Add: Freight in 2,000 138,515
Cost of goods available for sale P 288,515
Merchandise Inventory, End 130,000
Cost of Sales P 158,515

Note 3 Other Income

Commissions Income P 8,000

Note 4 Distribution Costs

Rent Expense, Store P 18,000
Utilities Expense, Store 13,800
Store Supplies Expense 12,000
Cleaning Services Expense, Store 9,000
Insurance Expense, Store 9,000
Freight out 1,800
Total Distribution Costs P 63,600

Note 5 Administrative Expenses

Salaries Expense P 43,000
 Depreciation Expense – Furniture 18,750
Depreciation Expense – Equipment 17,250
Rent Expense, Office 12,000
Utilities Expense, Office 9,200
Cleaning Services Expense, Office 6,000
Insurance Expense, Office 6,000
Doubtful Accounts Expense 750
Tota Administrative Expenses P 112,950

Note 6 Finance Cost

Interest expense P 225

Note 7 Trade and other Receivables

Accounts Receivable P 75,000
Less: Allowance for Doubtful Accounts 2,250 P 72,750
Commissions Receivable 8,000
Total Trade and other receivables P 80,750

Note 8 Prepaid Expenses

Store Supplies P 5,000
Prepaid Insurance Expense 75,000
Total Prepaid Expense P 80,000

Note 9 Property, Plant and Equipment

Furniture P 180,000
Less: Accumulated Depreciation - Furniture 33,750 P 146,250
Equipment P 230,000
Less: Accumulated Depreciation - Equipment 31,050 198,950
Carrying Amount P 345,200

Note 10 Trade and other Payables

Accounts Payable P 46,500
Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Unearned Sales Revenue 30,000
Total Trade and other payables P 249,725
 Erik Torsten Hardwares
Post-Closing Trial Balance
December 1, 2022

Account Title Debit Credit

Cash P 455,263
Accounts Receivable 75,000
Allowance for Doubtful Accounts P 2,250
Commissions Receivable 8,000
Merchandise Inventory 130,000
Store Supplies 5,000
Prepaid Insurance Expense 75,000
Equipment 230,000
Accumulated Depreciation - Equipment 31,050
Furniture 180,000
Accumulated Depreciation - Furniture 33,750
Accounts Payable 46,500
Notes Payable 150,000
Interest Payable 225
Utilities Payable 23,000
Unearned Sales Revenue 30,000
Torsten, Capital 841,488
Total P 1,158,263 P 1,158,263
ADJUSTING ENTRIES
DATE DESCRIPTION DR CR
Nov 1 Insurance Expense 15,000
Prepaid Insurance 15,000
adjusted for used portion of prepaid insurance

21 Interest Expense 225

Interest Payable 225
adjustment for accrued interest on notes payable

22 Unearned Sales Revenue 23,600

Sales 23,600
to get commission earnings earned but not yet received

30 Utilities Expense 23,000

Utilities Payable 23,000
to record Utilities Payable

30 Store Supplies Expense 12,000

Store Supplies 12,000
adjustment for used portion of store supplies

30 Depreciation Expense - Equipment 17,250

Accumulated Depreciation - Equipment 17,250
to record depreciation expense for equipment

30 Depreciation Expense – Furniture 18,750

Accumulated Depreciation - Furniture 18,750
to record depreciation expense for Furniture

30 Doubtful Accounts Expense 750

Allowance for Doubtful Accounts 750
adjustment for doubtful accounts

30 Merchandise Inventory 130,000

Income Summary 130,000
adjustment for closing inventory
CLOSING ENTRIES
DATE DESCRIPTION
Nov 30 Sales
Commissions Income
Purchase Discounts
Purchase Returns and Allowances
Income Summary
to close nominal accounts with income statement balances

30 Income Summary
Sales Returns and Allowances
Sales Discounts
Purchases
Freight-In
Cleaning Services Expense
Freight-Out
Insurance Expense
Interest Expense
Rent Expense
Salaries Expense
Store Supplies Expense
Utilities Expense
Depreciation Expense - Equipment
Depreciation Expense - Furniture
Doubful Accounts Expense
Merchandise Inventory, Beginning

30 Income Summary
Torsten, Capital
to close owner's drawing capital
 REVERSING ENTRIES
DR CR DATE DESCRIPTION
355,700 Dec 1
8,000
2,985
7,500
374,185 1

483,897
6,000
2,122
147,000
2,000
15,000
1,800
15,000
225
30,000
43,000
12,000
23,000
17,250
18,750
750
150,000

20,288
20,288
SING ENTRIES
DESCRIPTION DR CR
Commissions Income 8,000
Commissions Receivable 8,000
reverse accrued income

Utilities Payable 23,000

Utilities Expense 23,000
reverse accrued expense
 Cash
DATE DESCRIPTION DR DATE DESCRIPTION CR DATE
30-Nov Balance 455,263

Accounts Receivable
DATE DESCRIPTION DR DATE DESCRIPTION CR DATE
30-Nov Balance 75,000

Allowance for Doubtful Accounts

DATE DESCRIPTION DR DATE DESCRIPTION CR DATE
1-Nov Balance 1,500 1-Dec
30-Nov Doubtful Accounts Expense 750
2,250

DATE
Commissions Receivable 1-Dec
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Commisions Income 8,000 1-Dec Commissions Income 8,000

DATE
Merchandise Inventory 22-Nov
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 150,000 30-Nov Income Summary 150,000
30-Nov Income Summary 130,000
1-Dec Balance 130,000

Store Supplies
DATE DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Balance 17,000 30-Nov Store Supplies Expense 12,000
1-Dec Balance 5,000
 Prepaid Insurance Expense
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Cash 90,000 1-Nov Insurance Expense 15,000
1-Dec Balance 75,000

Equipment
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 230,000

Accumulated Depreciation - Equipment

DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 13,800
30-Nov Depreciation Expense - Equipment 17,250

Furniture
DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 180,000

Accumulated Depreciation - Furniture

DATE DESCRIPTION DR DATE DESCRIPTION CR
1-Nov Balance 15,000
30-Nov Depreciation Expense - Furniture 18,750
 Accounts Payable
DESCRIPTION DR DATE DESCRIPTION CR DATE
30-Nov Balance 46,500 30-Nov

Notes Payable
DESCRIPTION DR DATE DESCRIPTION CR
21-Nov Cash 150,000

DATE
Interest Payable 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR
Interest Expense 225 21-Nov Interest Expense 225
DATE
30-Nov
Utilities Payable
DESCRIPTION DR DATE DESCRIPTION CR
Utilities Expense 23,000 30-Nov Utilities Expense 23,000

Unearned Sales Revenue

DESCRIPTION DR DATE DESCRIPTION CR
Sales 23,600 22-Nov Cash 53,600
 Torsten, Capital
DESCRIPTION DR DATE DESCRIPTION CR DATE
Torsten, Drawing 16,000 1-Nov Balance 837,200
30-Nov Income Summary 20,288
16,000 857,488
30-Nov Balance 841,488

DATE
Torsten, Drawing 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR
Balance 16,000 30-Nov Torsten, Capital 16,000
DATE
Income Summary 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR

DATE

DATE
30-Nov

DATE
30-Nov

DATE

DATE
 Sales Clean
DESCRIPTION DR DATE DESCRIPTION CR DATE
30-Nov Total 332,100 30-Nov

DATE
Sales Returns and Allowances 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR
Total 6,000 In
DATE
Sales Discount
DESCRIPTION DR DATE DESCRIPTION CR
Total 2,122
DATE
Commissions Income
DESCRIPTION DR DATE DESCRIPTION CR

DATE
Purchases 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR
Total 147,000
DATE
Freight In 30-Nov
DESCRIPTION DR DATE DESCRIPTION CR
Total 2,000 Sto
DATE
Purchase Returns and Allowances
DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Total 7,500
DATE
Purchase Discounts
DESCRIPTION DR DATE DESCRIPTION CR
30-Nov Total 2,985
Depreciati
DATE

Deprecia
DATE

Doub
DATE
 Cleaning Services Expense
DESCRIPTION DR DATE DESCRIPTION CR
Total 15,000

Freight-Out
DESCRIPTION DR DATE DESCRIPTION CR
Total 1,800

Insurance Expense
DESCRIPTION DR DATE DESCRIPTION CR

Interest Expense
DESCRIPTION DR DATE DESCRIPTION CR

Rent Expense
DESCRIPTION DR DATE DESCRIPTION CR
Total 30,000

Salaries Expense
DESCRIPTION DR DATE DESCRIPTION CR
Total 43,000

Store Supplies Expense

DESCRIPTION DR DATE DESCRIPTION CR

Utilities Expense
DESCRIPTION DR DATE DESCRIPTION CR
 Depreciation Expense – Equipment
DESCRIPTION DR DATE DESCRIPTION CR

Depreciation Expense – Furniture

DESCRIPTION DR DATE DESCRIPTION CR

Doubtful Accounts Expense

DESCRIPTION DR DATE DESCRIPTION CR