ACTIVITY. On February 1, 20A4, twilight opened a store that sells school supplies. Twilight wanted to know the results of opening the store. Twilight a knew you were studying accounting so she asked for your help. The following were taken from the accounting records of twilight’s Store. Balance Debit Credit Sales ₱114,567 114,567 Sales return 1,544 1,544 Sales discount 1,675 1,675 Purchases 61,558 61,558 Purchase return 504 504 Purchase discount 1,076 1,076 Freight-in 765 765 Utilities expense 4,000 4,000 Salaries Expense 14,000 14,000 Rent expense 10,000 10,000 Depreciation 500 500 Total: 210,189 94,042 116,147 Additional Information: Physical inventory conducted at the end of the year revealed an ending inventory of ₱15,345. Depreciation is for shelves and cabinets used as displays racks and storage in the store. Mira has a small office inside the store. Allocate 15% of rent and utilities to general administrative expense. 25% of Emily’s Salaries are allocated to General and Administrative Expense. Aside from tending the store, she was also tasked to file receipts and maintain some records. Requirements: All accounts above have normal balances. Indicate whether the above accounts have debit or credit balances. Prepare the year ended SCI using the single-step approach. Prepare the year ended SCI using the multi-step approach.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 1EA: For each of the following, indicate if the statement reflects an input component, output component,...

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ACTIVITY. On February 1, 20A4, twilight opened a store that sells school supplies. Twilight wanted to know the results of opening the store. Twilight a knew you were studying accounting so she asked for your help. The following were taken from the accounting records of twilight’s Store.

	Balance	Debit	Credit
Sales	₱114,567		114,567
Sales return	1,544	1,544
Sales discount	1,675	1,675
Purchases	61,558	61,558
Purchase return	504		504
Purchase discount	1,076		1,076
Freight-in	765	765
Utilities expense	4,000	4,000
Salaries Expense	14,000	14,000
Rent expense	10,000	10,000
Depreciation	500	500
Total:	210,189	94,042	116,147

Additional Information:

Physical inventory conducted at the end of the year revealed an ending inventory of ₱15,345.
Depreciation is for shelves and cabinets used as displays racks and storage in the store.
Mira has a small office inside the store. Allocate 15% of rent and utilities to general administrative expense.
25% of Emily’s Salaries are allocated to General and Administrative Expense. Aside from tending the store, she was also tasked to file receipts and maintain some records.

Requirements:

All accounts above have normal balances. Indicate whether the above accounts have debit or credit balances.
Prepare the year ended SCI using the single-step approach.