1. Merchandise Company
Comprehensive Income Statement
For the Year ended December 31, 20XX
Revenue from Sales
Gross Sales P XXX
Less : Sales Discount P XXX
Sales Return and Allowances XXX XXX
Net Sales P XXX
Cost of Goods sold
Merchandise Inventory, Jan 1, 20XX P XXX
Purchases P XXX
Add transportation In XXX
Delivered Cost of Merchandise Purchased P XXX
Less : Purchase Discount P XXX
Purchase Return and Allowances XXX XXX XXX
Goods Available for Sale P XXX
Less : Merchandise Inventory, Dec 31, 20XX XXX
Cost of goods sold XXX
Gross Profit P XXX
Other Income
Interest Income XXX
P XXX
Operating expenses
Selling Expenses
Sales Salaries P XXX
Rent - Selling XXX
Store Supplies XXX
Advertising XXX P XXX
Administrative Expenses
Office Salaries P XXX
Depreciation - Office Equipment XXX
Utilities Expenses XXX
Rent - Admin XXX XXX
Other Expense
Interest Expense XXX XXX
Net income P XXX

2. Trial Balance Adjustment Income statement Balance sheet
Dr Cr Dr Cr Dr Cr Dr Cr
Cash 53,070.00 53,070.00
Accounts Receivable 6,900.00 6,900.00
Merchandise Inventory 47,100.00 b 39,600.00 a 47,100.00 39,600.00
Office Supplies 6,300.00 c 2,700.00 3,600.00
Prepaid Insurance 1,080.00 d 360.00 720.00
Equipment 18,000.00 18,000.00
Accumulated Depreciation 6,750.00 e 2,250.00 9,000.00
Accounts Payable 12,000.00 12,000.00
Capital - VLC 33,000.00 33,000.00
Drawings - VLC 30,000.00 30,000.00
Sales 450,000.00 450,000.00
Sales Return and allowance 1,500.00 1,500.00
Purchases 291,000.00 291,000.00
Purchase Discount 1,200.00 1,200.00
Purchase return and allowances 900.00 900.00
Transportation - In 7,800.00 7,800.00
Salaries and Wages - Sales 20,880.00 20,880.00
Rent Expense - Selling 2,160.00 2,160.00
Store Supplies Expense c 1,620.00 1,620.00
Advertising Expense 1,500.00 1,500.00
Salaries and Wages - Office 13,920.00 13,920.00
DepreciationExpense e 2,250.00 2,250.00
Utilities Expense 2,100.00 2,100.00
Rent Expense - General 1,440.00 1,440.00
Office Supplies Expense c 1,080.00 1,080.00
Insurance Expense d 360.00 360.00
Interest Income 1,080.00 1,080.00
Interest Expense 180.00 180.00
504,930.00 504,930.00
Income Summary a 47,100.00 b 39,600.00 47,100.00 39,600.00
92,010.00 92,010.00 394,890.00 492,780.00 151,890.00 54,000.00
Net Income 97,890.00 97,890.00
492,780.00 492,780.00 151,890.00 151,890.00