Accounting HW by ThijeiPiodos

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									                                                              Erlinda Seechua Company
                                              Working Paper for the Preparation of Financial Statements
                                                           Year Ended December 31, 2010
                                                    UNADJUSTED
                                                                              ADJUSTMENTS             INCOME STATEMENT        BALANCE SHEET
              ACCOUNT TITLES                       TRIAL BALANCE
                                                 DEBIT      CREDIT        DEBIT          CREDIT        DEBIT    CREDIT       DEBIT      CREDIT
Cash                                               72,000                                                                      72,000
Accounts Receivable                               136,000                                                                     136,000
Merchandise Inventory                             598,000                                               598,000   723,000     723,000
Land                                              400,000                                                                     400,000
Prepaid Advertising                                75,000                             b)      25,000                           50,000
Office Supplies                                    42,000                             a)      17,000                           25,000
Office Building                                 1,600,000                                                                   1,600,000
Accumulated Depreciation - Office Building                    100,000                 d)      15,000                                     115,000
Office Equipment                                  570,000                                                                    570,000
Accumulated Depreciation - Office Equipment                   150,000                 d)      20,000                                      170,000
Accounts Payable                                               74,000                                                                      74,000
Mortgage Payable                                            1,100,000                                                                   1,100,000
Notes Payable                                                 200,000                                                                     200,000
Seechua, Capital                                            1,510,000                                                                   1,510,000
Seechua, Withdrawals                              200,000                                                                    200,000
Sales                                                       4,600,000                                           4,600,000
Sales Returns and Allowances                      187,000                                               187,000
Sales Discounts                                   161,000                                               161,000
Purchases                                       2,643,000                                             2,643,000
Purchases Returns and Allowances                              133,000                                             133,000
Purchases Discounts                                           172,000                                             172,000
Transportation In                                  72,000                                                72,000
Insurance Expense                                  25,000                                                25,000
Interest Expense                                  208,000                                               208,000
Salaries Expense                                  862,000              c)     21,000                    883,000
Travel Expense                                    188,000                                               188,000
Totals                                          8,039,000   8,039,000
Office Supplies Expense                                                a)     17,000                     17,000
Advertising Expense                                                    b)     25,000                     25,000
Salaries Payable                                                                      c)      21,000                                      21,000
Depreciation Expense - Office Building                                 d)     15,000                     15,000
Depreciation Expense - Office Equipment                                d)     20,000                     20,000
                                                                              98,000          98,000  5,042,000 5,628,000   3,776,000   3,190,000
Net Income                                                                                              586,000                           586,000
                                                                                                      5,628,000 5,628,000   3,776,000   3,776,000
                                     Erlinda Seechua Company
                                         Income Statement
                                   Year Ended December 31, 2010
Net Sales
     Sales                                                                                 4,600,000
     Less: Sales Returns and Allowances                                         187,000
           Sales Discounts                                                      161,000      348,000
      Net Sales                                                                            4,252,000
Cost of Goods Sold
     Merchandise Inventory, 1/1/10                                              598,000
     Add: Net Puchases
           Purchases                                               2,643,000
           Less: Purchases Returns and Allowances        133,000
                Purchases Discounts                      172,000     305,000
     Net Purchases                                                 2,338,000
     Transportation In                                                72,000
     Net Cost of Purchases                                                     2,410,000
     Goods Available for Sale                                                  3,008,000
     Less: Merchandise Inventory, 12/31/10                                       723,000
     Cost of Sales                                                                         2,285,000
Gross Profit                                                                               1,967,000
Less: Operating Expenses
      Insurance Expense                                                          25,000
      Interest Expense                                                          208,000
      Salaries Expense                                                          883,000
      Travel Expense                                                            188,000
      Office Supplies Expense                                                    17,000
      Advertising Expense                                                        25,000
      Depreciation Expense - Office Building                                     15,000
      Depreciation Expense - Office Equipment                                    20,000    1,381,000
Profit                                                                                       586,000

                                     Erlinda Seechua Company
                                         Income Statement
                                   Year Ended December 31, 2010
Net Sales
     Sales                                                                                 4,600,000
     Less: Sales Returns and Allowances                                         187,000
           Sales Discounts                                                      161,000      348,000
      Net Sales                                                                            4,252,000
Cost of Goods Sold
     Merchandise Inventory, 1/1/10                                              598,000
     Add: Net Puchases
           Purchases                                               2,643,000
           Less: Purchases Returns and Allowances        133,000
                Purchases Discounts                      172,000     305,000
     Net Purchases                                                 2,338,000
     Transportation In                                                72,000
     Net Cost of Purchases                                                     2,410,000
     Goods Available for Sale                                                  3,008,000
     Less: Merchandise Inventory, 12/31/10                                       723,000
     Cost of Sales                                                                         2,285,000
Gross Profit                                                                               1,967,000
Less: Operating Expenses
      Insurance Expense                                                          25,000
      Interest Expense                                                          208,000
      Salaries Expense                                                          883,000
      Travel Expense                                                            188,000
      Office Supplies Expense                                                    17,000
      Advertising Expense                                                        25,000
      Depreciation Expense - Office Building                                     15,000
      Depreciation Expense - Office Equipment                                    20,000    1,381,000
Profit                                                                                       586,000
                   Erlinda Seechua Company
             Statement of Changes in Owner's Equity
                 Year Ended December 31, 2010

Seechua, Capital 1/1/10                               1,510,000
Add: Profit                                586,000
     Additional Investment                       -      586,000
Total                                                 2,096,000
Less: Withdrawals                                       200,000
Seechua, Capital 12/31/10                             1,896,000
                          Erlinda Seechua Company
                                Balance Sheet
                        Year Ended December 31, 2010
                                   ASSETS
Current Assets
    Cash                                                 72,000
    Accounts Receivable                                 136,000
    Merchandise Inventory                               723,000
    Prepaid Advertising                                  50,000
    Office Supplies                                      25,000
     Total Current Assets                                          1,006,000
Non-Current Assets
     Land                                               400,000
     Office Building                    1,600,000
     Less: Accumulated Depreciation       115,000      1,485,000
     Office Equipment                     570,000
     Less: Accumulated Depreciation       170,000       400,000
      Total Non-Current Assets                                     2,285,000
Total Assets                                                       3,291,000

                       LIABILITIES & OWNER'S EQUITY
Current Liabilities
    Accounts Payable                       74,000
    Mortgage Payable                    1,100,000
    Salaries Payable                       21,000
    Total Current Liabilities                          1,195,000
Non-Current Liabilities
     Notes Payable                                      200,000
Total Liabilities                                                  1,395,000
Add: Seechua, Capital                                              1,896,000
Total Liabilities and Owner's Equity                               3,291,000
                      Closing Entries for E. Seechua Company

 Date             Account Titles and Explanation            Debit        Credit
 2010
Dec. 31   Merchandise Inventory, 12/31/10                      723,000
          Sales                                             4,600,000
          Purchases Returns and Allowances                     133,000
          Purchases Discounts                                  172,000
              Income Summary                                              5,628,000

                  To close temporary accounts with credit
                  balance and to establish the ending
                  merchandise inventory.
Dec. 31   Income Summary                                    5,042,000
              Merchandise Inventory, 1/1/10                                598,000
              Sales Returns and Allowances                                 187,000
              Sales Discounts                                              161,000
              Puchases                                                    2,643,000
              Transportation In                                             72,000
              Insurance Expense                                             25,000
              Interest Expense                                             208,000
              Salaries Expense                                             883,000
              Travel Expense                                               188,000
              Office Supplies Expense                                       17,000
              Advertising Expense                                           25,000
              Depreciation Expense - Office Building                        15,000
              Depreciation Expense - Office Equipment                       20,000

                  To close temporary accounts with dedit
                  balance and to remove the beginning
                  inventory.
Dec. 31   Income Summary                                       586,000
              E. Seechua, Capital                                          586,000
                   To close the income summary account.
Dec. 31   E. Seechua, Capital                                  200,000
              E. Seechua, Withdrawals                                      200,000
                  To close the withdrawal account.
                           Erlinda Seechua Company
                           Post-Closing Trial Balance
                         Year Ended December 31, 2010
Cash                                                    72,000
Accounts Receivable                                 136,000
Merchandise Inventory                               723,000
Land                                                400,000
Prepaid Advertising                                     50,000
Office Supplies                                         25,000
Office Building                                   1,600,000
Accumulated Depreciation - Office Building                         115,000
Office Equipment                                    570,000
Accumulated Depreciation - Office Equipment                        170,000
Accounts Payable                                                    74,000
Mortgage Payable                                                 1,100,000
Salaries Payable                                                    21,000
Notes Payable                                                      200,000
Seechua, Capital                                                 1,896,000
                                                  3,576,000      3,576,000

								
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