Metro Davao Hardware and Auto Supply
Unadjusted Trial Balance
December 31, 2016
Debit
Cash in Bank
Petty Cash Fund
Accounts Receivable
Allowance for doubtful account
Merchandise Inventory, Jan. 1
Prepaid Insurance
Unused Supplies
Furniture & Fixtures
Accumulated Depreciation – Furniture & Fixtures
Delivery Equipment
Accumulated Depreciation – Delivery Equipment
Accounts Payable
J. Joson, Capital
J. Joson, Drawing
Sales
Sales Returns and Allowances
Sales Discounts
Purchases
Purchase Returns and Allowances
Purchase Discount
Freight Out
Salaries Expense
Rent Expense
Advertising Expense
Taxes and Licenses
Utilities Expense
Total
Credit
P1,735,000
1,000
357,000
P4,200
1,050,000
8,400
75,000
850,000
85,000
1,320,000
132,000
654,000
4,719,800
30,000
3,985,000
5,500
6,300
3,650,000
4,600
3,200
9,500
301,000
125,000
15,800
10,500
37,800__
P 9,587,800_
_____________
P 9,587,800_
The following were gathered to update the balances of some of the accounts on December 31, 2016 for
year-end financial statements preparation:
1. Merchandise Inventory, December 31, 2016 determined through physical counting P1,980,000.
2. Official Receipts No. 0752 dated December 31 representing collection from customers’ account was
not recorded, P15,000 same with Cash Sales invoice No. 05302 in the amount of P8,000. Both were
inadvertently omitted in the Cash Receipts Journal.
3. Check No. 09425 with covering Check Voucher No. 31 in the amount of P18,000 dated December 31
was not recorded and did not appear in the Cash Disbursement Journal. This represents payment of
account to a supplier.
4. Estimated Uncollectible Account should be brought-up to 2% of the outstanding receivable account
after considering the P15,000 adjustment for Official Receipt No. 0752.
5. A portion of Prepaid Insurance that expired amounted to P3,600 while P65,000 cost of supplies were
issued and used.
6. The Annual Depreciation Expense to be recorded for both Furniture and Fixtures and Delivery Equipment Is
P170,000 and P264,000.
7. Salaries are paid on Saturdays. The weekly payroll is P25,200. Assume that December 31, falls on a
Thursday and the company has a six-day pay week.