MERCHANDISING
The following information is taken from the ledger of ACE Trading Co. as of December 31, 2020, after its first year of operations:

Cash 520,100
Accounts receivable 690,000
Notes receivable 170,500
Prepaid insurance 80,000
Store supplies 100,750
Office supplies 150,210
Furniture and Fixtures 830,500
Accounts payable 450,000
Notes payable 500,000

J. King, capital ?
J. King, drawing (debit) 380,000
Sales 3,800,000
Sales returns allowances 130,050
Purchases 2,840,500
Purchase discount 230,000
Transportation-in 180,600
Store salaries    360,400
Advertising       140,500
Transportation -out 80,700
Office salaries 240,800
Rent expense 360,000
Other office expenses 50,540
Interest income 1,800


Adjusting information on December 31,2020 is given below:
1. Merchandise on hand per physical count, P 565,000
2. Accrued interest on notes receivable, P 2,900
3. Unexpired insurance, P 35,000
4. Rent expense includes P 55,000 paid in advance
5. Accrued office salaries, P12,500
6. Unpaid telephone bill for the month, P4,500.
7. Inventory of office supplies, P 34,500
8. Depreciation of furniture and fixtures is 10% per annum
9. Estimated uncollectible accounts is 5% of outstanding accounts receivable.
10. Accrued interest in notes payable, P 4,500.

Required:
1. Prepare a 10-column worksheet using the direct extension method.
2. Prepare a statement of comprehensive income and statement of financial position.
3. Prepare closing journal entries.

Question

MERCHANDISING
The following information is taken from the ledger of ACE Trading Co. as of December 31, 2020, after its first year of operations:
 
Cash  520,100
Accounts receivable                       690,000
Notes receivable                           170,500
Prepaid insurance                           80,000
Store supplies                              100,750
Office supplies                              150,210
Furniture and Fixtures                   830,500
Accounts payable                          450,000
Notes payable                               500,000

J. King, capital                                   ? 
J. King, drawing (debit)                 380,000
Sales                                          3,800,000 
Sales returns  allowances               130,050
Purchases                                   2,840,500 
Purchase discount                          230,000
Transportation-in                           180,600
 Store salaries                               360,400 
Advertising                                    140,500 
Transportation -out                          80,700
Office salaries                                240,800 
Rent expense                                 360,000 
Other office expenses                       50,540
Interest income                                 1,800
            

Adjusting information on December 31,2020 is given below:
1. Merchandise on hand per physical count, P 565,000
2. Accrued interest on notes receivable, P 2,900
3. Unexpired insurance, P 35,000
4. Rent expense includes P 55,000 paid in advance
5. Accrued office salaries, P12,500
6. Unpaid telephone bill for the month, P4,500.
7. Inventory of office supplies, P 34,500
8. Depreciation of furniture and fixtures is 10% per annum
9. Estimated uncollectible accounts is 5% of outstanding accounts receivable.
10. Accrued interest in notes payable, P 4,500.
 
Required:
1. Prepare a 10-column worksheet using the direct extension method.
2. Prepare a statement of comprehensive income and statement of financial position.
3. Prepare closing journal entries.

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