GOODWILL COMPANY
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 2021
Account Titles Trial Balance Adjustments Income Statement
Debit Credit Debit Credit Debit
Cash 7,525
Accounts Receivable 10,780
Merchandise Inventory 30,950 30,950
Store Supplies 3,411 1,607
Prepaid Insurance 3,100 1,400
Store Equipment 38,700
Accumulated Depreciation-Store Equipment 17,100 5,800
Accounts Payable 13,800
A. Fajardo, Capital 44,644
A. Fajardo, Drawings 13,500
Sales 103,750
Sales Returns and Allowances 2,487 2,487
Sales Discount 1,500 1,500
Purchases 63,200 63,200
Purchases Returns and Allowances 21,155
Purchase Discount 2,856
Freight In 3,761 3,761
Sales Salaries Expense 12,000 1,580 13,580
Other Selling Expense 4,114 4,114
Rent Expense 5,100 5,100
Miscellaneous General Expenses 3,177 3,177
203,305 203,305
Store Supplies Expense 1,607 1,607
Insurance Expense 1,400 1,400
Depreciation Expense - Store Equipment 5,800 5,800
Sales Salaries Payable 1,580
Uncollectible Accounts Expense 539 539
Allowance for Uncollectible Accounts 539
10926 10926 137,215
NET INCOME (LOSS) 25,273
162,488
ome Statement Balance Sheet
Credit Debit Credit
7,525
10,780
34,727 34,727
1,804
1,700
38,700
22,900
13,800
44,644
13,500
103,750
21,155
2,856
1580
539
162488 108,736 83463
25,273
162488 108,436 108736
GOODWILL COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2021
Sales
Less: Sales Returns & Allowances 2,487
Sales Discount 1,500
Net Sales
Less: Cost of Goods Sold
Merchandise Inventory, Jan. 1 30,950
Add:Purchases 63,200
Add:Freight In 3,761
Total 66,961
Less: Purchase Returns and Allowances 21,155
Purchase Discount 2,856 24,011
Net Purchases 42,950
Total Goods Available for Sale 73,900
Less: Merchandise Inventory, Dec. 31 34,727
Cost of Good Sold
Gross Profit
Less: Operating Expense
Selling Expense
Sales Salaries Expense 13,580
Store Supplies Expense 1,607
Depreciation Expense - Store Equipment 5,800
Other Selling Expense 4,114
Total Selling Expense 25,101
General and Administrative Expense
Rent Expense 5,100
Insurance Expense 1,400
Uncollectible Accounts Expense 539
Miscellaneous General Expense 3,177
Total General and Administrative Expense 10,216
Total Expenses
Net Income
103,750
3,987
99,763
39,173
60,590
35,317
25,273
GOODWILL COMPANY
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2021
Assets
Current Assets:
Cash 7,525
Accounts Receivable 10,780
Less: Allowance for Uncollectible Accounts 539 10,241
Merchandising Inventory 34,727
Prepaid Insurance 1,700
Store Supplies 1,804
Total Current Assets 55,997
Non Current Assets
Store Equipment 38,700
Less: Accumulated Depreciation 22,900 15,800
Total Non-Current Assets 15,800
Total Assets 71,797
Liabilities
Current Liabilities
Accounts Payable 13,800
Sales Salaries Payable 1,580
Total Current Liabilities 15,380
Total Liabilities 15,380
Capital
A. Fajardo, Capital 56,417
Total Liabilities and Capital 71,797
GOODWILL COMPANY
GENERAL JOURNAL
PAGE NO. 1
DATE
2021 PARTICULARS PR DEBIT CREDIT
ADJUSTING ENTRIES
Dec 31 Income Summary 30,950
Merchandise Inventory, Beg 30,950
To close the merchandise inventory, beg to
income summary
31 Merchandise Inventory, end 34,727
Income Summary 34,727
to record ending inventory
31 Store Supplies Expense 1,607
Store Supplies 1,607
to record ending store supplies
31 Insurance Expense 1,400
Prepaid Insurance 1,400
to record expired prepaid
31 Depreciation Expense - Store Equipment 5,800
Accumulated Depreciation - Store Equipment 5,800
to record estimated depreciation
31 Sales Salaries Expense 1,580
Salaries Payable 1,580
to record accrued expense
31 Uncollectible Accounts Expense 539
Allowance for Uncollectible Accounts 539
to record estimated uncollectible
GOODWILL COMPANY
GENERAL JOURNAL
PAGE NO. 2
DATE
2021 PARTICULARS PR DEBIT
CLOSING ENTRIES
Dec 31 Sales 103,750
Purchase Returns and Allowances 21,155
Purchase Discounts 2,856
Income Summary
to close credits in the income statement
31 Income Summary 106,265
Sales Return and Allowances
Sales Discount
Purchases
Freight In
Sales Salaries Expense
Store Supplies Expense
Depreciation Expense - Store Equipment
Other Selling Expense
Rent Expense
Insurance expense
Uncollectible Account Expense
Miscellaneous General Expense
to close all debit balances in the income statement
31 Income Summary 25,273
A. Fajardo, Capital
to close the net income to capital
31 A. Fajardo, Capital 13,500
A. Fajardo, Drawing
to close the owner's drawing
PAGE NO. 2
CREDIT
127,761
2,487
1,500
63,200
3,761
13,580
1,607
5,800
4,114
5,100
1,400
539
3,177
25,273
13,500
GOODWILL COMPANY
Statement of Changes in Owner's Equity
FOR THE YEAR ENDED DECEMBER 31, 2021
Capital, January 1, 2021 44,644
Add: Net Income 25,273
Total 69,917
Less: Drawings 13,500
Capital, December 31, 2021 56,417
GOODWILL COMPANY
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2021
Cash 7,525
Accounts Receivable 10,780
Allowance for Uncollectible Accounts 539
Merchandise Inventory 34,727
Prepaid Insurance 1,700
Store Supplies 1,804
Store Equipement 38,700
Accumulated Depreciation- Store Equipment 22,900
Accounts Payable 13,800
Salaries Payable 1,580
A. Fajardo, Capital 56,417
Totals 95,236 95236
