Harold King Trading Unadjusted Trial Balance December 31, 2020     Account Titles  Debit   Credit      Cash in Bank                 980,000       Cash on Hand                   20,500       Accounts Receivable                 120,000       Allowance for Bad Debts                     8,000     Notes Receivable                 100,000       Merchandise Inventory, Jan 1, 2020                 500,000       Prepaid Interest                     7,500       Land              1,000,000       Building              2,000,000       Store Equipment                 140,000       Accumulated Depreciation, Store Equipment              32,000.00     Office Furniture & Fixtures                 200,000       Accumulated Depreciation, Office Furniture & Fix.                   30,000     Accounts Payable                 620,400     VAT Payable                 140,000     Unearned Rent Revenue                 240,000     Notes Payable                  500,000     Loans Payable (2 year-loan dated December 1, 2020)              2,500,000     King, Capital                 777,000     King, Personal                 120,000       Sales              4,980,800     Sales Discount                   49,800       Sales Returns and Allowances                     6,000       Purchases              3,180,000       Purchase Discounts                   63,600     Purchase Returns & Allowances                   30,000     Freight In                   70,000       Freight Out                   40,000       Sales Salaries Expense                 585,000       Office Salaries Expense                 624,000       Store Supplies Expense                   20,000       Office Supplies Expense                   15,000       Store Utilities Expense                   84,000       Office Utilities Expense                   60,000       Total              9,921,800            9,921,800    Additional information on 31 December 2020        a) Merchandise on hand on December 31, 2020 amounts to P855,000.     b) Store Supplies and Office Supplies used during 2020 amounts to P18,000 and P12,000, respectively.   c) Store Equipment were all acquired last yeat and  is estimated to be usefull for 7 years with estimated salvage value of 20% of the cost.        d) Office Furniture has an estimated useful life of 10 years with salvage value of 25% of cost.   e) The building was constructed last year and the business started occupying it on January 1 this year. The store occupies 60% of the space, the rest are offices.  It will be used for 25 years with estimated salvage value of P50,000.   f) The business lease out a small portion of the land for P20,000 per month, paid in advance for 12 months, starting March 1, 2020.     g) Acrrued salaries on December 31, 2020: Sales Slaries, P3,750 and Office Salaries, P4,000.   h) The Loan Payable is a 2-year promissory note dated  01 December  2020 with 6% interest payble when the principal is due.       i) The Notes Paybale is a 90-day note discounted on 16 November 2020 at Union Bank at 6%.   j) A customer's note for P100,000 was received in settlement of an account on 16 December 2020. This note is a 60-day, 6% note          k) Allowance for Bad Debts should 10% of Accounts Receivable. Bad Debts is treated as administrative expense.     Question:  What is the adjustments in a Ten-column worksheet?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Harold King Trading
Unadjusted Trial Balance
December 31, 2020
 
  Account Titles  Debit   Credit   
  Cash in Bank                 980,000    
  Cash on Hand                   20,500    
  Accounts Receivable                 120,000    
  Allowance for Bad Debts                     8,000  
  Notes Receivable                 100,000    
  Merchandise Inventory, Jan 1, 2020                 500,000    
  Prepaid Interest                     7,500    
  Land              1,000,000    
  Building              2,000,000    
  Store Equipment                 140,000    
  Accumulated Depreciation, Store Equipment              32,000.00  
  Office Furniture & Fixtures                 200,000    
  Accumulated Depreciation, Office Furniture & Fix.                   30,000  
  Accounts Payable                 620,400  
  VAT Payable                 140,000  
  Unearned Rent Revenue                 240,000  
  Notes Payable                  500,000  
  Loans Payable (2 year-loan dated December 1, 2020)              2,500,000  
  King, Capital                 777,000  
  King, Personal                 120,000    
  Sales              4,980,800  
  Sales Discount                   49,800    
  Sales Returns and Allowances                     6,000    
  Purchases              3,180,000    
  Purchase Discounts                   63,600  
  Purchase Returns & Allowances                   30,000  
  Freight In                   70,000    
  Freight Out                   40,000    
  Sales Salaries Expense                 585,000    
  Office Salaries Expense                 624,000    
  Store Supplies Expense                   20,000    
  Office Supplies Expense                   15,000    
  Store Utilities Expense                   84,000    
  Office Utilities Expense                   60,000    
  Total              9,921,800            9,921,800  
 Additional information on 31 December 2020       
a) Merchandise on hand on December 31, 2020 amounts to P855,000.    
b) Store Supplies and Office Supplies used during 2020 amounts to P18,000 and P12,000, respectively.  
c) Store Equipment were all acquired last yeat and  is estimated to be usefull for 7 years with estimated salvage value of 20% of the cost.   
   
d) Office Furniture has an estimated useful life of 10 years with salvage value of 25% of cost.  
e) The building was constructed last year and the business started occupying it on January 1 this year. The store occupies 60% of the space, the rest are offices.  It will be used for 25 years with estimated salvage value of P50,000.  
f) The business lease out a small portion of the land for P20,000 per month, paid in advance for 12 months, starting March 1, 2020.    
g) Acrrued salaries on December 31, 2020: Sales Slaries, P3,750 and Office Salaries, P4,000.  
h) The Loan Payable is a 2-year promissory note dated  01 December  2020 with 6% interest payble when the principal is due.  
   
i) The Notes Paybale is a 90-day note discounted on 16 November 2020 at Union Bank at 6%.  
j) A customer's note for P100,000 was received in settlement of an account on 16 December 2020. This note is a 60-day, 6% note     
   
k) Allowance for Bad Debts should 10% of Accounts Receivable. Bad Debts is treated as administrative expense.  

 

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What is the adjustments in a Ten-column worksheet?

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