Reference no: EM131227224
The following trial balance was taken from the books of Arthur's trading.
Arthur's Trading
Trail Balance
December 31, 2014
|
Debit |
Credit |
| Cash |
P313,490 |
|
| Accounts Receivable |
35,350 |
|
| Allowance for Bad Debts |
|
P800 |
| Merchandise Inventory, January 1 |
51,000 |
|
| Supplies Inventory |
2,650 |
|
| Office Funiture and Fixtures |
37,000 |
|
| Accumulated Depreciation |
|
4,300 |
| Accounts Payable |
|
15,710 |
| Loans Paybale |
|
200,000 |
| Javier, Capital |
|
163,500 |
| Javier, Drawing |
14,400 |
|
| Sales |
|
403,320 |
| Sales Return & Allowances |
4050 |
|
| Purchases |
190,600 |
|
| Purchase Return & Allowances |
|
3,420 |
| Delivery Expense |
6,250 |
|
| Rent Expense |
70,020 |
|
| Salaries Expense |
63,000 |
|
| Office Expense |
3,240 |
|
| Totals |
P791,035 |
P791,050 |
With the following additional information prepare a ten column worksheet and the closing entries and financial statements:
1. It is estimated that 5% of the accounts receivable will prove uncollectible.
2. Depreciation for furniture and fixtures is 10%. P20,000 of which was just acquired on November 30.
3. Unused supplies amounted to P1,600.
4. Loans payable was for a loan obtained on an 18%, 2-year note dated June 1, 2014 and due on June 1, 2016.
5. Unsold goods amounted to P50,400 as of December 31.
Allocate one-fourth of rent to administrative expenses. There are two sales clerks and one office clerk receiving the same amount of salaries. One-fourth of supplies is administrative expense.
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