Problem Imus Student

Preparing the Worksheet, Adjusting and Closing Entries, and Financial Statements

The ledger account of the B. Onate Company for the year ended Dec. 31, 2000 are as

follows:

Accumulated Depreciation -Office Building 100,000

Accumulated Depreciation -Office Equipment 150,000

Account Receivable 136,000

Account Payable 74,000

Cash 72,000

Transportation in 72,000

Insurance Expense 25,000

Interest Expense 208,000

Onate, Capital 1,510,000

Onate, Withdrawals 200,000

Land 400,000

Merchandise inventory 598,000

Mortgage Payable 1,100,000

Notes Payable 200,000

Office Building 1,600,000

Office Equipment 570,000

Office Supplies 42,000

Prepaid Advertising 75,000

Purchases Discount 172,000

Purchases Return & Allowances 133,000

Purchases 2,643,000

Salaries Expense 862,000

Sales Discount 161,000

Sales Return & Allowances 187,000

Sales 4,600,000

Travel Expense 188,000

Additional Information:

a. Office Supplies consumed during the year amounted to P17,000.

b. Advertising expense in the amount of P25,000 has expired during the year.

c. Salaries of P21,000 have accrued as at Dec. 31, 2000.

d. Depreciation on the office building and on the office equipment amounted to P15,000

and P20,000, respectively.

e. The Dec. 31, 2000 ending inventory is P723,000.

Required:

Worksheet

Adjusting Trial Balance