how do you solve the following
the adjustments (letter a), income statement ( letter b), changes in equity ( letter c) and statement of financial position (letter D)
Adapted from : Weygandy , J. J., et. al. 120151 . Principles of Accounting - Philippine reprint edition . John Wiley & Sons , Australia , Led ." John and Jean Retail Store which follows a calendar year and makes use of the periodic* inventory system is engaged in the buying and selling of pet supplies . It's trial balance as at December 31 , 2018 is shown below . No adjusting entries have been made for the year 2018 . JOHN & JEAN RETAIL STORE TRIAL BALANCE December 31 , 2018 ACCOUNT* Unadjusted Balances Code* Account Titles Debit Credit 101 Cash 80, 0.00 121 Accounts Receivable* 41, 000 122 Allowance for doubtful accounts* 1 , 200 131 Merchandise Inventory , beginning 36, 200 142 Prepaid Rent Expense* 30, 000 143 Prepaid Insurance Expense 40.0.00 145 Store Supplies 13, 300 221 Delivery Equipment 5.20, 000 222 Accumulated Depreciation - Delivery Equipment 58, 50.0 23.1 Store Equipment* 86, 000 232 Accumulated Depreciation - Store Equipment* 9. 500 3:01 Accounts Payable* 47, 300 3.13, Notes Payable ( due on September 30 , 2018 ) 200, 000 401 John C. Jean , Capital 384, 2 401 John C. Jean Drawis* 50, 000 501 Sales Revenue* 1 , 516, 500 502 Sales Returns and Allowances 21 , 200 503 Sales Discount* 9.500 521 Purchases 726, 000 602 Salaries Expenses ( 60% dist ; 40%6 admin ) 372 , 0.00 $12 Utilities Expense ( 70%6 dist ; 30%6 admin ) 104,0.00 622 Delivery Expense* 8 , 100 63.4 Taxes and Licenses Expense $5 , 000 699 Miscellaneous Expense 1 1, 900 701 Interest Income* 5, 000 711 Interest Expense* 8,000 $ 2, 222, 200| P _2, 222, 200 Adjustments data :" 1 Unrecorded interest on notes payable of P5, 000 is due and remains unpaid at year end , 2018 2 Of the reported Prepaid Rent Expense , one - fourth has expired at year -end 2018 . 3. Store Supplies unused as at year - end 2018 amounted to P 3 , 850 . 4 Doubtul account is estimated at 5% of outstanding accounts receivable . 5 Delivery equipment has estimated salvage value equal to 10% of cost and useful life of six years* 5 Store equipmewn't has estimated salvage value of $10, 000 and useful life of eight years . 7 Merchandise inventory at year -end based on physical count , is $ 4 1, 700 .Based on the adjustment data , journalize the necessary adjusting entries on December 31 , 2018 . ( Use 10 - column worksheet - referred to as W's 1] of the worksheet . Start with the left side and continue with the right side . 6. Prepare Functional - Farm Income Statement for the year ended December 31 , 2018 . USE W'S NO. 2, left side . . Prepare Statement of Changes in Equity for the year Ended December 31 , 2018. USE Worksheet No. 2 right side . d. Prepare a report- form Statement of Financial Position as at December 31 , 2018 . USE Worksheet NO. 2, right side . E . Prepare all supporting Notes to Financial Statements . USE Worksheet No. 4, start with the left side and continue with the right side . I. Journalize the closing entries . Use Worksheet No . 5, start with the left side and continue with the right side . 4. Prepare a Post Closing Trial Balance . Use Worksheet NO. 6, left side . A. Prepare a reversing Entries l if there is any ! . USE Worksheet O . E. right side
