Additional data needed for adjustments: 1. Increase the allowance for doubtful accounts to 5% of Accounts Receivable. 2. The notes received from the customers consists of: a) 30-day, 9% note for P4,000 dated December 11, 2022 b) 60-day P800 note dated December 6, 2022 No interest has been collected on these notes. 3. The business has paid on January 1, 2022 store insurance premium of P6,300 for a two-year policy effective on that date. 4. It is company policy for all furniture & fixtures to be depreciated over a useful life of 5 years. Of those on hand and assigned to the store, P6,000 were acquired only on December 1, 2022. The remaining store furniture & fixture, as well as the office furniture & fixture will be depreciated according to normal company policy. 5. Sales salaries of P550 has accrued as of December 31. 6. On November 1, 2022, the business paid for a three-month rental locker contract for P900. The locker is used for storage of store inventory. 7. The notes payable represents a 60-day, 18% note dated December 11, 2022 for which no interest has yet been paid. 8. The business received commission P2,400 but only one-third of this has been earned by the company. 9. Merchandise unsold, per physical count of December 31, 2022, amounted to three-fourth of the beginning inventory. 10. Utilities of P5,250 for the month of December have not been recorded. This will be paid on January 15, 2023.

INSTRUCTIONS: 1. Check the accuracy of the data provided by preparing a Trial Balance in the first two columns of a 10- column worksheet [WS]. Make sure that the total debits and the total credits are equal. 2. Complete the adjustments section of the worksheet [WS] by using the additional data for adjustment indicated above. 3. Determine the debit and credit balance of Adjusted Trial Balance [WS]. 4. Determine the net income or net loss and complete the worksheet [WS]. 5. Prepare a natural form Statement of Profit or Loss for the year ended December 31, 2022 [SPL]. 6. Prepare a Statement of Owners Equity for the year ended December 31, 2022 [SOE]. 7. Prepare a report form Statement of Financial Position as of December 31, 2022 [SFP]. 8. Journalize and post the adjusting entries on December 31, 2022 using the general journal and the general ledger [GJ and GL]. 9. Journalize and post the closing entries on December 31, 2022 using the general journal and the general ledger [GJ and GL]. 10. Prepare a post-closing Trial Balance as of December 31, 2022 [PCTB]. 11. Journalize and post the necessary reversing entries on January 1, 2023 using the general journal and the general ledger [GJ and GL].

FDNACCT Trading Unadjusted Trial Balance December 31, 2022