The ledger accounts of the Q. Mendoza Company for the year ended December 31, 2011 are as follows: Accumulated Depreciation - Off. Building 100,000 Notes Payable due 2013 200,000 Accumulated Depreciation - Off. Equipment 150,000 Office Building 1,600,000 Accounts Receivable 136,000 Office Equipment 570,000 Accounts Payable 74,000 Office Supplies 42,000 Cash 72,000 Prepaid Advertising 75,000 Transportation In 72,000 Purchase Discounts 172,000 Insurance Expense 25,000 Purchase Returns and Allowances 133,000 Interest Expense 208,000 Purchases 2,643,000 Mendoza, Capital 1,510,000 Salaries Expense 862,000 Mendoza, Withdrawals 200,000 Sales Discounts 161,000 Land 400,000 Sales Returns and Allowances 187,000 Merchandise Inventory 598,000 Sales 4,600,000 Mortgage Payable 1,100,000 Travel Expenses 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 December 31, 2011. d. Depreciation on the office building and on the office equipment amounted to P15,000 and P20,000, respectively. e. The December 31, 2011 ending inventory is P723,000. Requirements: 1. Prepare the worksheet include a column for the Cost of Sales. 2. Prepare the Financial statements: Statement of Financial Performance (Classified as to Operating expenses) with a schedule of Sales, Cost of Sales and Purchases, Classified Statement of Financial Position and the Statement of Changes in Owner’s Equity. 3. Prepare the closing entries using the cost of sales summary account and also prepare the Post Closing Trial Balance. What is the solution for this ?
The ledger accounts of the Q. Mendoza Company for the year ended
December 31, 2011 are as follows:
Accumulated
Accumulated Depreciation - Off. Equipment 150,000 Office Building 1,600,000
Accounts Payable 74,000 Office Supplies 42,000
Cash 72,000 Prepaid Advertising 75,000
Transportation In 72,000 Purchase Discounts 172,000
Insurance Expense 25,000 Purchase Returns and Allowances 133,000
Interest Expense 208,000 Purchases 2,643,000
Mendoza, Capital 1,510,000 Salaries Expense 862,000
Mendoza, Withdrawals 200,000 Sales Discounts 161,000
Land 400,000 Sales Returns and Allowances 187,000
Merchandise Inventory 598,000 Sales 4,600,000
Mortgage Payable 1,100,000 Travel Expenses 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 December 31, 2011.
d. Depreciation on the office building and on the office equipment amounted to
P15,000 and P20,000, respectively.
e. The December 31, 2011 ending inventory is P723,000.
Requirements:
1. Prepare the worksheet include a column for the Cost of Sales.
2. Prepare the Financial statements: Statement of Financial Performance (Classified
as to Operating expenses) with a schedule of Sales, Cost of Sales and Purchases,
Classified
Owner’s Equity.
3. Prepare the closing entries using the cost of sales summary account and also
prepare the Post Closing
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