VI. Accounting and Legal Requirments 159 Quiz 2 BENE Store WORKSHEET DECEMBER 31, 20X1 Account Titles Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Cash in Bank 70,000 Accounts Receivable 1,003,000 Allowance for Bad Debts 40,000 Merchandise Inventory 710,000 Equipment 2,720,100 Accumulated Depreciation Equipment 70,000 Furniture 300,000 Accumulated Depreciation Furniture 30,000 Accounts Payable 861,000 Loans Payable 1.000.00 BIR, SSS, PhilHealth Payable 100,000 V.Bene, Capital 1.300,000 V.Bene, Drawing 105,000 Sales 6,000,000 Cost of Sales 1,500,000 Salaries 1,305,900 Supplies Expense 48,400 Employees Benefits 238,100 Light and Power 205,000 Rent 240,000 Taxes 63,500 Insurance 78,000 Repair and Maintenance 86,000 Advertising 110,000 Sales Salaries 198,000 Commission 360,000 Interest Expense 60,000 Totals 9,401,000 9,401,000 To do: 1. Extend assets, liabilities, and capital balances to balance sheet columns. 2. Extend income, cost, and expenses to the income statement columns. 3. Compute net income. This is the total Sales less all of costs and expenses. 4. Post net income to the credit of balance sheet and to the debit of income statement. 5. Get the totals of each of the four columns. Each pair of totals should be equal. Words to Ponder Financial Statements direct the business whether to move forward or backward