Practicing Fundamentals: Completing the Accounting Cycle for FAN DEL SOL

FAN DE SOL Trial Balance September 30, 2021 Credit P Debit 293,000 220,000 P 16,000 150,000 0 0 65,000 60,000 12,000 1,000,000 2,500,000 0 70,000 No. 001 021 022 023 024 025 031 041 042 101 102 103 104 105 201 211 221 301 302 401 402 403 411 412 501 502 511 513 515 516 518 521 522 598 599 601 Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Interest Receivable Rent Receivable Merchandise Inventory, October 1, 2020 Prepaid Insurance Office Supplies Land Building Accumulated Depreciation - Building Store Furniture and Equipment Accumulated Depreciation - Store Furniture and Equipment Accounts Payable Salaries Payable Unearned Sales Coco, Capital, October 1, 2020 Coco, Drawing Sales Sales Returns and Allowances Sales Discount Rent Income Interest Income Purchases Purchase Returns and Allowances Store Salaries Expense Utilities Expense Depreciation Expense - Building Depreciation Expense - Store Furniture and Equipment Office Supplies Expense Insurance Expense Doubtful Accounts Expense Miscellaneous Distribution Costs Miscellaneous Administrative Expenses Income Summary TOTAL 0 258,000 0 180,000 3,021,000 3,220,000 240,000 60,000 20,000 0 0 105,000 1,400,000 560,000 122,000 0 OOO 0 11,000 17,000 0 P6,800,000 P6,800,000 FDNACCT WRITTEN GROUP CASE ANALYSIS (10% of final grade] Term 3, Academic Year 2020-2021 "Practicing Fundamentals: Completing the Accounting Cycle for FAN DE SOL" FAN DE SOL (the company), which follows accounting standards and uses the periodic inventory system, is a merchandising business that buys and sells solar-powered electric fans. Its trial balance as of fiscal year-end September 30, 2021, before any adjustments, can be found on the next page: Information for adjusting entries are as follows: 1. Rent income amounting to P60,000 has been earned but not yet received from building tenants nor recorded in the company's books as of fiscal year-end. 2. When office supplies are purchased their cost is recorded as an asset. As supplies are used, a record of those used is kept. The record sheet shows that P5,500 of supplies were used in September. 3. Store salaries of P10,000 for the last week of September 2021 have not been recorded. 4. The reported Prepaid Insurance balance represents monthly insurance payments from August 1 to December 31, 2021 which was paid in advance on July 15, 2021. 5. Interest of P4,500 has been earned on notes receivable but has not yet been received as of fiscal year-end. 6. The building has an estimated useful life of 20 years and a salvage value of P200,000. 7. The store furniture and equipment have an estimated useful life of eight years, with no salvage value. 8. Of the reported Unearned Sales account balance, one-third has been earned as at fiscal year-end. 9. It is estimated that 12% of the accounts receivable is uncollectible. 10. A physical count indicated that P47,500 of inventory was on hand at the end of the fiscal year. 2. Your group is tasked to do the following for FAN DE SOL: j 2 b) Prepare the company's adjusted trial balance as of September 30, 2021. Use Spreadsheet Worksheet tab#2. c) Prepare the company's functional-form Income Statement for the fiscal year ended September 30, 2021. Use Spreadsheet Worksheet tab#3. d) Prepare the company's Statement of Changes in Equity for the fiscal year ended September 30, 2021. Continue with Spreadsheet Worksheet tab#3. e) Prepare the company's report-form Statement of Financial Position as of September 30, 2021. Continue with Spreadsheet Worksheet tab #3. f) Prepare supporting notes to financial statements. Continue with Spreadsheet Worksheet tab #3. g) Journalize closing entries on September 30, 2021. Continue with Spreadsheet Worksheet tab #1. h) Prepare the company's post-closing trial balance as at September 30, 2021. Continue with Spreadsheet Worksheet tab #2. i) Journalize reversing entries on October 1, 2021, if applicable. Continue with Spreadsheet Worksheet tab #1. 2