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 amount to P18,000 and P12,000, respectively. c) Store Equipment were all acquired last year and is estimated to be useful for 7 years with an estimated salvage value of 20% of the cost. d) Office Furniture has an estimated useful life of 10 years with a salvage value of 25% of the 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 an 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) Accrued salaries on December 31, 2020: Sales Salaries, P3,750 and Office Salaries, P4,000. h) The Loan Payable is a 2-year promissory note dated 01 December 2020 with 6% interest payable when the principal is due. i) The Notes Payable 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 Debt is treated as an administrative expense. Required: 1) Prepare a ten - column Worksheet

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 amount to P18,000 and P12,000, respectively. c) Store Equipment were all acquired last year and is estimated to be useful for 7 years with an estimated salvage value of 20% of the cost. d) Office Furniture has an estimated useful life of 10 years with a salvage value of 25% of the 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 an 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) Accrued salaries on December 31, 2020: Sales Salaries, P3,750 and Office Salaries, P4,000. h) The Loan Payable is a 2-year promissory note dated 01 December 2020 with 6% interest payable when the principal is due. i) The Notes Payable 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 Debt is treated as an administrative expense. Required: 1) Prepare a ten - column Worksheet

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 amount to P18,000 and P12,000, respectively.
c)	Store Equipment were all acquired last year and is estimated to be useful for 7 years with an estimated salvage value of 20% of the cost.

d)	Office Furniture has an estimated useful life of 10 years with a salvage value of 25% of the 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 an 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)	Accrued salaries on December 31, 2020: Sales Salaries, P3,750 and Office Salaries, P4,000.
h)	The Loan Payable is a 2-year promissory note dated 01 December 2020 with 6% interest payable when the principal is due.

i)	The Notes Payable 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 Debt is treated as an administrative expense.

Required:
1) Prepare a ten - column Worksheet
2) How to compute the additional information above

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