Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 76 views

    Dagohoy

    Uploaded by

    linkin soy
    The trial balance for Clarity Company for the year ended December 31, 2012 is presented. It shows various accounts with debit and credit balances before and after adjustments. Major adjustments include recognizing doubtful accounts expense, adjusting inventory balances, recording depreciation expense and accumulated depreciation. After all adjustments, the net profit for the year is reported as P272,055.

    Copyright:

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

    Dagohoy

    Uploaded by

    linkin soy
    76 views6 pages
    The trial balance for Clarity Company for the year ended December 31, 2012 is presented. It shows various accounts with debit and credit balances before and after adjustments. Major adjustments include recognizing doubtful accounts expense, adjusting inventory balances, recording depreciation expense and accumulated depreciation. After all adjustments, the net profit for the year is reported as P272,055.

    Original Description:

    as

    Original Title

    dagohoy

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The trial balance for Clarity Company for the year ended December 31, 2012 is presented. It shows various accounts with debit and credit balances before and after adjustments. Major adjustments include recognizing doubtful accounts expense, adjusting inventory balances, recording depreciation expense and accumulated depreciation. After all adjustments, the net profit for the year is reported as P272,055.

    Copyright:

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

    Dagohoy

    Uploaded by

    linkin soy
    The trial balance for Clarity Company for the year ended December 31, 2012 is presented. It shows various accounts with debit and credit balances before and after adjustments. Major adjustments include recognizing doubtful accounts expense, adjusting inventory balances, recording depreciation expense and accumulated depreciation. After all adjustments, the net profit for the year is reported as P272,055.

    Copyright:

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

    CLARITY COMPANY WORKING TRIAL BALANCE

    FOR THE YEAR ENDED DECEMBER 31, 2012

    Trial Balance Adjustments Profit or Loss


    Debit Credit Debit Credit Debit Credit
    Cash 191,000 60,000
    Accounts 615,000
    receivable
    Allowance for 21,000 9,750
    doubtful
    accounts
    Inventory, 584,000 584,000
    Dec. 31, 2011

    Prepaid 8,000 1,200


    expenses
    Investments 110,000 30,000

    Furniture and 312,000


    equipment

    Miscellaneous 90,000
    equipment

    Accumulated 76,400 39,200


    depreciation

    Accounts 543,000 50,000


    payable
    Accrued 51,000 3,000
    expenses
    Unearned rent 12,800 2,800
    income
    Ordinary share 600,000
    capital

    Retained 182,800
    earnings
    Sales 3,500,000 3,500,000
    Rent income 48,000 2,800 50,800

    Purchases 2,424,000 50,000 2,474,000


    Salaries 400,000 400,000
    expense
    Advertising 124,000 124,000
    expense
    Commission 80,000 80,000
    expense
    Utilities 32,000 32,000
    expense
    Supplies 12,000 12,000
    expense
    Transportation 14,000 14,000
    expense
    Repairs and 16,000 16,000
    maintenance

    Miscellaneous 23,000 3,000 26,000


    expenses

    5,035,000 5,035,000
    Equipment 60,000
    acquisition
    fund
    Doubtful 9,750 9,750
    accounts
    expense
    Inventory, 650,000
    Dec. 31, 2012

    Cost of goods 2,408,000 2,408,000


    sold
    Treasury 30,000
    shares
    Depreciation 39,200 39,200
    expense
    Insurance 1,200 1,200
    expense
    3,253,950 3,253,950 3,162,150 3,550,800
    Profit before 388,650
    income tax

    3,550,800 3,550,800
    Profit before 388,650
    income tax

    Income tax 116,595


    expense
    Income tax
    payable
    Profit 272,055
    388,650 388,650
    Problem 2
    Audit Adjusting Entries:
    Accounts receivable
    15,000
    Cash in bank 15,000
    Doubtful accounts expense 15,650 15,650
    Allowance
    Purchases for doubtful accounts 50,000 50,000
    Accounts payable
    Cost of goods sold 2,120,500
    Inventory, end (601,200 + 50,000 – 621,200
    30,000)
    Purchase returns and allowances Purchases 36,500 2,209,300
    (2,159,300 + 50,000)
    Inventory, beginning 568,900
    Accumulated depreciation – equipment Gain *11,000 6,000
    on sale of equipment
    Furniture and equipment 5,000
    (40,000 – 35,000)  40,000 x 10% x 2.75 years) = 11,000
    Depreciation expense – furniture and equipment 64,300
    Accumulated depreciation – furniture and equipment
    Depreciation expense: 64,300 Furniture and equipment, per client P618,00
    On remaining equipment 613,000 x 10% =P61,300
    Prepaid insurance (8,400 x 6/12) 4,200
    Insurance
    Prepaid expense
    rent 130,000 x 1/13 10,000 4,200
    Rent expense
    Discount on notes payable 11,00010,000
    Interest
    Retainedexpense
    earnings 300,000 11,000
    Goodwill 300,000
    Financial Position
    Debit Credit
    131,000
    615,000

    30,750

    6,800

    80,000

    312,000

    90,000

    115,600

    593,000

    54,000

    10,000

    600,000

    182,800
    60,000

    650,000

    30,000

    116,595

    272,055
    1,974,800 1,974,800

    uipment, per client P618,000

    You might also like