UNADJESTED TRIAL BALANCE

Account Title Debit Credit

101 Cash ₱ 63,600
112 Accounts Receivable 153,900
113 Allowance for Doubtful Accounts ₱ 4,200
121 Merchandise Inventory 202,400
131 Prepaid Insurance Expense 168,000
135 Store Supplies 11,400
162 Store Equipment 269,500
163 Accumulated Depreciation – Store Equipment 40,425
164 Office Furniture 200,000
165 Accumulated Depreciation – Office Furniture 22,500
212 Accounts Payable 96,600
218 Salaries Payable ---
301 Baby S. Hark, Capital, January 1, 2017 534,675
302 Baby S. Hark, Drawing 35,000
401 Sales 3,221,100
402 Sales Returns and Allowances 32,700
403 Sales Discount 19,500
502 Purchases 1,623,000
523 Sales Salaries Expense 334,800
524 Advertising Expense 81,000
527 Depreciation Expense – Store Equipment –
529 Store Supplies Expense –
539 Miscellaneous Distribution Costs 12,600
541 Utilities Expense 375,000
543 Office Salaries Expense 182,100
544 Rent Expense 80,000
546 Depreciation Expense – Office Furniture –
548 Insurance Expense –
549 Taxes and Licenses Expense 67,200
552 Doubtful Accounts Expense –
599 Miscellaneous Administrative Expenses 7,800
TOTAL ₱3,919,500 ₱3,919,500
 ADJUSTMENTS
Account Title Debit Credit
101 Cash
112 Accounts Receivable
113 Allowance for Doubtful Accounts 7,695
121 Merchandise Inventory
131 Prepaid Insurance Expense 56000
135 Store Supplies 3,900
162 Store Equipment
163 Accumulated Depreciation – Store Equipment 26,950
164 Office Furniture
165 Accumulated Depreciation – Office Furniture 22,500
212 Accounts Payable
218 Salaries Payable 45000
301 Baby S. Hark, Capital, January 1, 2017
302 Baby S. Hark, Drawing
401 Sales
402 Sales Returns and Allowances
403 Sales Discount
502 Purchases
523 Sales Salaries Expense 32000
524 Advertising Expense
527 Depreciation Expense – Store Equipment 26,950
529 Store Supplies Expense 3,900
539 Miscellaneous Distribution Costs
541 Utilities Expense
543 Office Salaries Expense 13000
544 Rent Expense
546 Depreciation Expense – Office Furniture 22,500
548 Insurance Expense 56000
549 Taxes and Licenses Expense
552 Doubtful Accounts Expense 7,695
599 Miscellaneous Administrative Expenses
TOTAL
 ADJUSTED TRIAL BALANCE
Account Title DEBIT CREDIT
101 Cash 63,600
112 Accounts Receivable 153,900
113 Allowance for Doubtful Accounts 11,895
121 Merchandise Inventory 202,400
131 Prepaid Insurance Expense 112,000
135 Store Supplies 7,500
162 Store Equipment 269,500
163 Accumulated Depreciation – Store Equipment 67,375
164 Office Furniture 200,000
165 Accumulated Depreciation – Office Furniture 45,000
212 Accounts Payable 96,600
218 Salaries Payable 45000
301 Baby S. Hark, Capital, January 1, 2017 534,675
302 Baby S. Hark, Drawing 35,000
401 Sales 3,221,100
402 Sales Returns and Allowances 32,700
403 Sales Discount 19,500
502 Purchases 1,623,000
523 Sales Salaries Expense 366,800
524 Advertising Expense 81,000
527 Depreciation Expense – Store Equipment 26,950
529 Store Supplies Expense 3,900
539 Miscellaneous Distribution Costs 12,600
541 Utilities Expense 375,000
543 Office Salaries Expense 195,100
544 Rent Expense 80,000
546 Depreciation Expense – Office Furniture 22,500
548 Insurance Expense 56000
549 Taxes and Licenses Expense 67,200
552 Doubtful Accounts Expense 7,695
599 Miscellaneous Administrative Expenses 7,800
TOTAL 4,021,645 4021645
Baby Shark Company 1 2
Functional Income Statement
For the year ended December 31, 2017

Net Sales Revenue 3, 168, 900

Less: Cost of Sales 1, 560, 400
Gross Profit 1608500
Less: Operating Expenses
Administrative Expenses 838245
Distribution Expenses 464300 1302545
Net Income 305955

Baby Shark Company

Statement of Changes in Owner's Equity
For the year ended December 31, 2017

Baby Shark Capital, beginning 534675

Add: Net Income 305955
Sub-total 840630
Less: Baby Shark drawing 35000
Baby Shark Capital, end 805630
Baby Shark Company 1 2
Statement of Financial Position
For the year ended December 31, 2017

ASSETS
Current Assets
Cash 63, 600
Trade and Other Receivables 142, 005
Merchandise Inventory, end 265, 000
Prepaid Expenses 119, 500
Total Current Assets 590105
Non-current Assets
Property, plant and equipment 357125
TOTAL ASSETS 947230

LIABILITIES & OWNER'S EQUITY

Current Liabilities
Trade and Other Payables 141600

Owner's Equity
Baby Shark 805630
TOTAL LIABILITIES & OWNER'S EQUITY 947230
Note 1 Net Sales Revenue
Sales 3,221,100.00
Less: Sales Return and Allowances 32,700.00
Sales Discount 19500 52,200
Net Sales Revenue 3,168,900

Note 2 Cost of Sales

Merchandise Inventory, beginning 202,400
Add: Net cost of Purchases
Purchases 1,623,000
Cost of Goods available for sale 1,825,400
Less: Merchandise Inventory, end 265,000
Cost of Sales 1,560,400

Note 3 Administrative Expenses

Utilities Expense 375,000
Office Salaries Expense 195,100
Rent Expense 80,000
Depreciation Expense – Office Furniture 22,500
Insurance Expense 56,000
Taxes and Licenses Expense 67,200
Depreciation Expense – Store Equipment 26,950
Doubtful Accounts Expense 7,695
Miscellaneous Administrative Expenses 7,800
Total 838,245

Note 4 Distribution Expense

Sales Salaries Expense 366,800
Advertising Expense 81,000
Store Supplies Expense 3,900
Miscellaneous Distribution Costs 12,600
Total 464,300

Note 5 Trade and Other Receivables

Accounts Receivable 153,900
Less: Allowance for Doubtful Accounts 11,895
Total 142,005

Note 6 Prepaid Expenses

Prepaid Insurance Expense 112,000
Store Supplies 7,500
Total 119,500

Note 7 Property, Plant, and Equipment

Store Equipment 269,500
 Less: Accumulated Depreciation - Store Equipment 67,375 202,125
Office Furniture 200,000
Less: Accumulated Depreciation - Office Furniture 45,000 155,000
Total carrying value 357,125

Note 8 Trade and other payables

Accounts Payable 96,600
Salaries Payable 45,000
Total 141,600