The Bookkeeper of Kenneth's Toyland presented the following ledger accounts and their balances as of June 30, 2018, the end of the fiscal period: Account Titles Cash In Bank 487288 Cash On Hand 75200 Accounts Receivable 112000 Allowance for Bad Debts 4000 Notes Receivable 4800 Merchandise Inventory, July 1, 2017 89500 Prepaid Store Insurance 6300 Store Furniture and Fixtures 16000 Accumulated Depreciation - Store Furniture and Fixtures 500 Office Furniture and Fixtures 15000 Accumulated Depreciation - Office Furniture and Fixtures 900 Accounts Payable 54000 Notes Payable 180000 Unearned Commission 2400 Withholding Taxes Payable 490 SS & EC Premiums Payable 522 Phil Health Premiums Payable 100 Pag - Ibig Premiums Payable 200 Alfonso, Capital 521900 Alfonso, Personal 30000 Sales 583200 Sales Returns & Allowances 5020 Sales Discount 2880 Purchases 242000 Purchase Returns & Allowances 3000 Purchase Discount 2000 Freight In 6000 Advertising Expense 9000 Sales Salaries Expense 60000 Office Salaries Expense 33400 Rent Expense 96800 Taxes Expense 12000 Utilities Expense 42400 Interest Expense 600 Interest Income 3000 SS & EC Premiums Expense 6424 Phil Health Premiums Expense 1200 Pag - Ibig Premiums Expense 2400 Additional data needed for adjustments: a) Increase the allowance for doubtful accounts to 5% of accounts receivable b) the notes received from the customers consists of: 30-day, 9% note for 4000 dated June 10, 2018 60-day 800 note dated June 5, 2018 c) the business has paid on January 1, 2017 insurance premium for a two - year policy effective on that date d) the store furniture & fixture are depreciated over a useful life of 5 years. of those on hand as of June 30, 6000 were acquired only on June 1, 2017. the office furniture & fixture are to be depreciated at a rate of 20% per anum. e) sales salaries of 550 has accrued as of June 30 f) on May 1, 2018, the business paid for the three-month advertising contract for 900. g) the notes payable represents a 60-day, 18% note dated June 10, 2018, for which no interest has yet been paid. h) the business received a commission of 4,200 but only one-third of this has been earned by the company. i) merchandise unsold, per physical count of June 30, 2018, amounted to three-fourth of the beginning inventory. j) accrue 3% percentage tax on net sales. last quarter of June 30 net sales amounted to 175,200. Required: Prepare an eight-column worksheet Prepare an income statement and a statement of financial position. Three-fourth of rent and utilities should be allocated to selling expenses.

Question

The Bookkeeper of Kenneth's Toyland presented the following ledger accounts and their balances as of June 30, 2018, the end of the fiscal period:

Account Titles

Cash In Bank	487288
Cash On Hand	75200
Accounts Receivable	112000
Allowance for Bad Debts	4000
Notes Receivable	4800
Merchandise Inventory, July 1, 2017	89500
Prepaid Store Insurance	6300
Store Furniture and Fixtures	16000
Accumulated Depreciation - Store Furniture and Fixtures	500
Office Furniture and Fixtures	15000
Accumulated Depreciation - Office Furniture and Fixtures	900
Accounts Payable	54000
Notes Payable	180000
Unearned Commission	2400
Withholding Taxes Payable	490
SS & EC Premiums Payable	522
Phil Health Premiums Payable	100
Pag - Ibig Premiums Payable	200
Alfonso, Capital	521900
Alfonso, Personal	30000
Sales	583200
Sales Returns & Allowances	5020
Sales Discount	2880
Purchases	242000
Purchase Returns & Allowances	3000
Purchase Discount	2000
Freight In	6000
Advertising Expense	9000
Sales Salaries Expense	60000
Office Salaries Expense	33400
Rent Expense	96800
Taxes Expense	12000
Utilities Expense	42400
Interest Expense	600
Interest Income	3000
SS & EC Premiums Expense	6424
Phil Health Premiums Expense	1200
Pag - Ibig Premiums Expense	2400

Additional data needed for adjustments:

a) Increase the allowance for doubtful accounts to 5% of accounts receivable

b) the notes received from the customers consists of:
30-day, 9% note for 4000 dated June 10, 2018
60-day 800 note dated June 5, 2018

c) the business has paid on January 1, 2017 insurance premium for a two - year policy effective on that date

d) the store furniture & fixture are depreciated over a useful life of 5 years. of those on hand as of June 30, 6000 were acquired only on June 1, 2017. the office furniture & fixture are to be depreciated at a rate of 20% per anum.

e) sales salaries of 550 has accrued as of June 30

f) on May 1, 2018, the business paid for the three-month advertising contract for 900.

g) the notes payable represents a 60-day, 18% note dated June 10, 2018, for which no interest has yet been paid.

h) the business received a commission of 4,200 but only one-third of this has been earned by the company.

i) merchandise unsold, per physical count of June 30, 2018, amounted to three-fourth of the beginning inventory.

j) accrue 3% percentage tax on net sales. last quarter of June 30 net sales amounted to 175,200.

Required:

Prepare an eight-column worksheet
Prepare an income statement and a statement of financial position. Three-fourth of rent and utilities should be allocated to selling expenses.
Make the necessary closing entries
Prepare a post-closing trial balance
Prepare the reversing entries