HILARITY

No. Date Transactions Decription

1 1-Jan Hilarity invests 70,000$ in cash and 30,000$ to buy a small house as a shop.
Bought equipment including display cabinet for 4,200$ in cash, the salvage price is 0$, and
2 1-Jan
the useful life is 3 years
Bought supplies including POS systems for $2,000 in cash, the salvage price is 200$, and
3 1-Jan
the useful life is 3 years.
4 18-Jan The store paid 100$ in cash for decorating expenses.
The store imported 300 units of baby tee in cash for the price 5$ per unit. The store
5 2-Feb
receive 5% discount for the first transaction with suppliers.
6 5-Feb Store paid for land tax expenses is 300$ in cash to governmnent.
Import $10,000 more baby tee ( include 2,000 units and price 5$ per unit) in debt from
7 12-Feb
suppliers
8 14-Feb Pay for the cleaning expenses is 25$ in cash
The store made the sales for first day is 2,000$ in cash for 200 units of baby tee sold. The
9 18-Feb
COGS per unit is 5$.
The store made the sales is 3,000$ in cash for 300 units of baby tee. The COGS per unit is
10 1-Mar
5$.
Hilarity sold 250 units to customers. The price per unit is 10$. The COGS per unit is 5$. The
11 8-Mar
term is 3/10,n/30.
The store paid for debt to suppliers that store purchased inventory on credit in 12
12 15-Mar
February. The store just paid 2,000 in cash.
13 20-Mar The customer who purchased baby tee in 8 March, paid for their debt was 2,500 in cash

14 6-Apr A customer rent a baby tee in 1 day for 50$ in cash.

The store purchased inventory from suppliers is 400 units of baby tee with the price 5$
15 17-Apr
per unit. The term is 5/15, n/30.
16 24-Apr Store returned 30 defective products to customer for the inventory purchased in 17 April
Hilarity completed payment to the debt that purchased inventory in debt from suppliers in
17 28-Apr
17 April. The store received the discount for this payment.
18 10-May Hilarity withdraw 100$ in cash.

19 30-May The store paid the salary for 1 assistant in May is 120$ in cash.

20 11-Jun The store sold for 5,200 in cash for 520 units of baby tees. The COGS per unit is 5$.
The customer returned 30 units of baby tee becaused of the printing error that purchased
21 15-Jun
in 11 June.
1 customer paid in advance for rent a special version of baby tee in 2 months for 60$ in
22 3-Jul
cash.
23 8-Jul Store paid 120$ in cash for marketing in 2 months.

24 15-Jul Store also paid 150$ for printing in advance in 3 months.

The store sold for a customer is 2,000$ in debt for 200 units of baby tee, the term is 3/15,
25 4-Aug
n/30, the COGS was 5$ per unit.
Customer comed to store and pay their debt that purchased in 4 August, the store gave
26 16-Aug
the discount to customers for this transaction.
27 19-Sep A customer rent a baby tee in 1 day for 47$ in cash.

28 30-Sep The store paid for utilities expesnes is 100$ in cash

29 15-Oct The store sold for 1,250$ in cash for 125 units of baby tees. The COGS per unit is 5$.

30 30-Nov The store paid for 75$ in cash for 1 assistant in 1 week of work.

31 31-Dec Hilarity withdraw 100$ from the store to pay for personal expenses.

ADJUSTING ENTRIES
On January 1, Bought equipment including display cabinet for 4,200$ in cash, the salvage
32 31-Dec
price is 0$, and the useful life is 3 years
On January 1, Bought supplies including POS systems for $2,000 in cash, the salvage price
33 31-Dec
is 200$, and the useful life is 3 years.
On July 3, customer paid in advance for rent a special version of baby tee in 2 months for
34 31-Dec
60$ in cash.
35 31-Dec On July 8, Store paid 100$ in cash for marketing in 2 months.

36 31-Dec On July 15, Store also paid 150$ for printing in advance in 3 months.

37 31-Dec The accrued utilities for December is 50$.

 GENERAL JOURNAL
No. DATE DESCRIPTION DEBIT CREDIT
1 1-Jan Cash $ 70,000
Shop house $ 30,000
Hilarity, Capital $ 100,000
( to record owner investment)
2 1-Jan Equipment- Display cabinet $ 4,200
Cash $ 4,200
( to record purchase equipment)
3 1-Jan Supplies- POS $ 2,000
Account payable $ 2,000
( to record purchase supplies)
4 18-Jan Expenses $ 100
Cash $ 100
( to record decorating expense for shop house)
5 2-Feb Merchandise inventory $ 1,425
Cash $ 1,425 ( the discount rate = 5%)
( to record inventory)
6 5-Feb Land tax expenses $ 300
Cash $ 300
( to record land tax expenses0
7 12-Feb Merchandise inventory $ 10,000
Account payable $ 10,000
( to record purchase inventory)
8 14-Feb Cleaning expenses $ 25
Cash $ 25
( to record cleaning expenses)
9 18-Feb Cash $ 2,000
Sales $ 2,000
( to record sales)
18-Feb Cost of goods sold $ 1,000
Merchandise inventory $ 1,000
( to record COGS)
10 1-Mar Cash $ 3,000
Sales $ 3,000
( to record sales)
1-Mar Cost of goods sold $ 1,500
Merchandise inventory $ 1,500
( to record COGS)
11 8-Mar Account receivable $ 2,500
Sales $ 2,500
( to record sales)
8-Mar Cost of goods sold $ 1,250
Merchandise inventory $ 1,250
( to record COGS)
12 15-Mar Account payable $ 2,000
Cash $ 2,000
( to record payment to supplies)
13 20-Mar Cash $ 2,500
Account receivable $ 2,500
( to record customer payment)
14 6-Apr Cash $ 50
Rent revenue $ 50
( to record rent revenue)
15 17-Apr Merchandise inventory $ 2,000
Account payable $ 2,000
( to record merchandise inventory)
16 24-Apr Account payable $ 150
Merchandise inventory $ 150
( to record return product to supplier)
17 28-Apr Account payable $ 2,050
Cash $ 1,947.5 ( the discount rate 5%)
Merchandise inventory $ 102.5
( to record payment to supplier)
18 10-May Hilarity, withdrawals $ 100
Cash $ 100
( to record owner withdrawals)
19 30-May Salaries expenses $ 120
Cash $ 120
( to record salaries expenses)
20 11-Jun Cash $ 5,200
Sales $ 5,200
( to record sales)
11-Jun Cost of goods sold $ 2,600
Merchandise inventory $ 2,600
( to record COGS)
21 15-Jun Sales returns and allowances $ 300
Cash $ 300
( to record customer returned product)
15-Jun Merchandise inventory $ 150
Cost of goods sold $ 150
( to record product returned)
22 3-Jul Cash $ 60
Unearned revenue $ 60
( to record unearned revenue)
23 8-Jul Prepaid marketing $ 120
Cash $ 120
( to record prepaid marketing)
24 15-Jul Prepaid printing $ 150
Cash $ 150
( to record prepaid printing)
25 4-Aug Account receivable $ 2,000
Sales $ 2,000
( to record sales)
4-Aug Cost of goods sold $ 1,000
Merchandise inventory $ 1,000
( to record COGS)
26 16-Aug Cash $ 1,940
Sales discount $ 60
Account receivable $ 2,000 ( the discount rate = 3%)
( to record customer payment)
27 19-Sep Cash $ 47
Rent revenue $ 47
( to record rent revenue)
28 30-Sep Utilities expenses $ 100
Cash $ 100
( to record utilities expenses)
29 15-Oct Cash $ 1,250
Sales $ 1,250
( to record sales)
15-Oct Cost of goods sold $ 625
Merchandise inventory $ 625
( to record COGS)
30 30-Nov Salaries expenses $ 75
Cash $ 75
( to record salaries expenses)
31 31-Dec Hilarity, withdrawals $ 100
Cash $ 100
( to record owner withdrawals)
ADJUSTING ENTRIES

32 31-Dec Depreciation expenses- Equipmnet ( Display cabinet) $ 1,400

Accumulated depreciation- Equipment $ 1,400 The depreciation expenses for equipment in 1 year = ( 4,200 -0 ) / 3 = 1,400$
( to record depreciation expenses for equipment)
33 31-Dec Depreciation expenses- Supplies ( POS systmems) $ 600
Accumulated depreciation- Supplies $ 600 The depreciation expenses for supplies in 1 year = ( 2,000-200 ) / 3 = 600$
( to record depreciation expenses for supplies)
34 31-Dec Unearned revenue $ 60
Rent revenue $ 60
( to record rent revenue)
35 31-Dec Marketing expenses $ 120
Prepaid marketing $ 120
( to record marketing expenses)
36 31-Dec Printing expenses $ 150
Prepaid printing $ 150
( to record printing expenses)
37 31-Dec Utilities expenses $ 50
Utilities payable $ 50
( to record utilities expenses)
 Cash Account receivable
Debit Credit Debit Credit
$ 70,000 $ 2,500
$ 4,200 $ 2,500
$ 100 $ 2,000
$ 1,425 $ 2,000
$ 300 EB $ -
$ 25
$ 2,000 Prepaid marketing
$ 3,000 Debit Credit
$ 2,000 $ 120
$ 2,500 $ 120
$ 50 EB $ -
$ 1,947.5
$ 100
$ 120 Prepaid printing
$ 5,200 Debit Credit
$ 300 $ 150
$ 60 $ 150
$ 120 EB $ -
$ 150
$ 1,940
$ 47 Supplies
$ 100 Debit Credit
$ 1,250 $ 2,000
$ 75 EB $ 2,000
$ 100
EB $ 74,984.5
Equipment
Debit Credit
$ 4,200
EB $ 4,200
 Merchandise inventory
Debit Credit
$ 1,425
$ 10,000
$ 1,000
$ 1,500
$ 1,250
$ 2,000
$ 150
$ 102.5
$ 2,600
$ 150
$ 1,000
$ 625
EB $ 5,347.5

Shop house
Debit Credit
$ 30,000
EB $ 30,000

Accumulated depreciation-Supplies
Debit Credit
$ 600
EB $ 600

Accumulated depreciation-Equipment
Debit Credit
$ 1,400
EB $ 1,400
 Acccount payable Hilarity, Capital
Debit Credit Debit Credit
$ 2,000 $ 100,000
$ 10,000 EB $ 100,000
$ 2,000
$ 2,000 Hilarity, withdrawals
$ 150 Debit Credit
$ 2,050 $ 100
EB $ 9,800 $ 100
EB $ 200.0
Unearned revenue
Debit Credit Sales
$ 60 Debit Credit
$ 60 $ 2,000
EB $ - $ 3,000
$ 2,500
Utilities payable $ 5,200
Debit Credit $ 2,000
$ 50 $ 1,250
EB $ 50 EB $ 15,950

Rent revenue
Debit Credit
$ 50
$ 47
$ 60
EB $ 157
 Sales discount Depreciation expenses- Supplies Salaries expenses
Debit Credit Debit Credit Debit
$ 60 $ 600 $ 120
EB $ 60 EB $ 600 $ 75
EB $ 195
Sales returns and Allowances Depreciation expenses- Equipment
Debit Credit Debit Credit Utilties expenses
$ 300 $ 1,400 Debit
EB $ 300 EB $ 1,400 $ 100
$ 50
EB $ 150
Cost of goods sold Marketing expenses
Debit Credit Debit Credit Land tax expenses
$ 1,000 $ 120 Debit
$ 1,500 EB $ 120 $ 300
$ 1,250 EB $ 300
$ 2,600 Printing expenses
$ 150 Debit Credit Expenses
$ 1,000 $ 150 Debit
$ 625 EB $ 150 $ 100
EB $ 7,825 EB $ 100

Cleaning expenses
Debit
$ 25
EB $ 25
Salaries expenses
Credit

Utilties expenses
Credit

Land tax expenses

Credit

Expenses
Credit

Cleaning expenses
Credit
 HILARITY
TRIAL BALANCE
FOR MONTH ENDED ON DECEMBER 31,2024
UNADJUSTED ADJUSTING ADJUSTED INCOME STATEMENT BALANCE SHEET & STATEMENT OF OWNER EQUITY
Account no.
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash $ 74,984.5 $ 74,984.5 $ 74,984.5
Account receivable $ - $ - $ -
Prepaid marketing $ 120 $ 120 $ - $ -
Prepaid printing $ 150 $ 150 $ - $ -
Merchandise inventory $ 5,347.5 $ 5,347.5 $ 5,347.5
Store supplies $ 2,000 $ 2,000 $ 2,000
Accumulated depreciation- supplies $ - $ 600 $ 600 $ 600
Store equipments $ 4,200 $ 4,200 $ 4,200
Accumulated depreciation-equipments $ - $ 1,400 $ 1,400 $ 1,400
Shop house $ 30,000 $ 30,000 $ 30,000
Account payable $ 9,800 $ 9,800 $ 9,800
Unearned revenue $ 60 $ 60 $ - $ -
Utilities payable $ - $ 50 $ 50 $ 50
Hilarity, Capital $ 100,000 $ 100,000 $ 100,000
Hilarity, Withdrawals $ 200 $ 200 $ 200
Sales $ 15,950 $ 15,950 $ 15,950
Rent revenue $ 97 $ 60 $ 157 $ 157
Sales discount $ 60 $ 60 $ 60
Sales returns and allowances $ 300 $ 300 $ 300
Cost of goods sold $ 7,825 $ 7,825 $ 7,825
Depreciation expense-store supplies $ - $ 600 $ 600 $ 600
Depreciation expense-store equipment $ - $ 1,400 $ 1,400 $ 1,400
Expenses $ 100 $ 100 $ 100
Marketing expenses $ - $ 120 $ 120 $ 120
Printing expenses $ - $ 150 $ 150 $ 150
Tax land expenses $ 300 $ 300 $ 300
Salaries expenses $ 195 $ 195 $ 195
Cleaning expenses $ 25 $ 25 $ 25
Utilities expenses $ 100 $ 50 $ 150 $ 150
Total $ 125,907 $ 125,907 $ 2,380 $ 2,380 $ 127,957 $ 127,957 $ 11,225 $ 16,107 $ 116,732 $ 111,850
 HILARITY
MULTIPLE STEP INCOME STATEMENT
FOR MONTH ENDED ON DECEMBER, 31 2024
Sales
Less: Sales discount
Sales returns and allowances
Net sales
Cost of goods sold
Gross Profit
Operating expenses
Selling expenses
Depreciation expense-store supplies
Depreciation expense-store equipment
Expenses
Marketing expenses
Printing expenses
Salaries expenses
Cleaning expenses
Utilities expenses
Total selling expenses
General and Administrative expenses
Insurances expenses
Total General and Administrative expenses
Total operating expenses
Income from operations
Other revenues and gains ( expenses and loss)
Rent revenue
Tax land expenses
Net income

HILARITY
CLASSIFIED BALANCE SHEET
FOR MONTH ENDED ON DECEMBER, 31 2024
Assets:
Current assets:
Cash
Account receivable
Prepaid marketing
Prepaid printing
Merchandise inventory
Other current assets
Total current assets

Non-current assets:
Property, plant, supplies and equipment
 Other non-current assets
Less: Accumulated depreciation expenses ( supplies and equipment)
Total non-current assets
Total assets

Liabilities and Equity:

Current liabilities:
Account payale
Utilities payable
Unearned revenue
Total current liabilities

Non-current liabilities
Long term debt
Total non-current liabilities
Total liabilities

Equity:
Hilarity, capital
Retained earnings
Total equity
Total Liabilities + Equity
 HILARITY
EMENT STATEMENT OF RETAINED E
R, 31 2024 FOR MONTH ENDED ON DECEM
$ 15,950 Hilarity, capital on January 1,2024
$ 60 Investment by owner
$ 300 Net income
$ 15,590 Total
$ 7,825 Less: Hilarity, withdrawals
$ 7,765 Hilarity, capital on December 31,2024

$ 600
$ 1,400
$ 100
$ 120
$ 150
$ 195
$ 25
$ 150
$ 2,740

$ -
$ -
$ 2,740
$ 5,025
$ -
$ 157
$ 300
$ 4,882

2024

$ 74,984.5
$ -
$ -
$ -
$ 5,347.5
$ -
$ 80,332.0

$ 36,200
$ -
$ 2,000.00
$ 34,200.00
$ 114,532

$ 9,800
$ 50
$ -
$ 9,850

$ -
$ -
$ 9,850

$ 99,800
$ 4,882
$ 104,682
$ 114,532
 HILARITY
STATEMENT OF RETAINED EARNINGS
OR MONTH ENDED ON DECEMBER, 31 2024
24
$ 100,000
$ 4,882
$ 104,882
$ 200
1,2024 $ 104,682
 Close renveue account to income summary
Debit Credit
31-Dec Sales 15,950
Rent revenue 157
Income summary 16,107
( to close income summary)

Close income summary to owner capital

Debit Credit
31-Dec Income summary 4,882
Retained earnings 4,882
( to close income summary)
 Close expenses account to income summary

31-Dec Income summary

Sales discount
Sales returns and allowances
Cost of goods sold
Depreciation expense-store supplies
Depreciation expense-store equipment
Expenses
Marketing expenses
Printing expenses
Tax land expenses
Salaries expenses
Cleaning expenses
Utilities expenses
( to close income summary)

Close withdrawals account to owner capital

31-Dec Hilarity, captial

Hilarity, withdrawals
( to close income summary)
come summary
Debit Credit
11,225
60
300
7825
600
1400
100
120
150
300
195
25
150

o owner capital
Debit Credit
200
200
 HILARITY
POST CLOSING TRIAL BALANCE
FOR MONTH ENDED ON DECEMBER 31, 2024
Cash $ 74,984.5
Account receivable $ -
Prepaid marketing $ -
Prepaid printing $ -
Merchandise inventory $ 5,347.5
Store supplies $ 2,000
Store equipments $ 4,200
Shop house $ 30,000
Accumulated depreciation- supplies
Accumulated depreciation-equipments
Account payable
Unearned revenue
Utilities payable
Hilarity, Contributed capital
Retained earnings
Total $ 116,532
ARITY
TRIAL BALANCE
ON DECEMBER 31, 2024
$ 74,984.5
$ -
$ -
$ -
$ 5,347.5
$ 2,000
$ 4,200
$ 30,000
$ 600
$ 1,400
$ 9,800
$ -
$ 50
$ 99,800
$ 4,882
$ 116,532 $ 116,532