TIN: 123-913-571-000

NAME: WOO INC

ADDRESS: UNIT 301 & 320 3/F AIC BURGUNDY EMPIRE TOWER ADB AVE COR
GARNET & SAPPHIRE ORTIGAS CENTER PASIG CITY 1605

JOURNAL ENTRIES
DATE ACCT ACCT NAME Dr Cr
NO.

Acounts Payable 12,000.00

Cash 12,000.00
to record payment of accounts payable

Cash 35,000.00
Accounts Receivable 35,000.00
to record collection of accounts receivable

Inventory 40,000.00
Cash 10,000.00
Accounts Payable 30,000.00
to record purchase of inventory

Cash 126,000.00
Accounts Receivable 54,000.00
Sales 180,000.00
to record sales of inventory

Tax Payable 5,000.00

Cash 5,000.00
to record payment of tax payable

Wages Payable 7,000.00

Wages Expense 18,000.00
Cash 25,000.00
to record payment of wages

Cash 20,000.00
Accounts Receivable 20,000.00
to record collection of accounts receivable

Prepaid Rent 28,000.00

Cash 28,000.00
to record payment of prepaid rent

Accounts Payable 10,000.00

Cash 10,000.00
to record payment of accounts payable

Cash 6,000.00
Common Stock 6,000.00
to record issuance of common stocks

Advertising Expense 2,000.00

Cash 2,000.00
to record advertising expense

Retained Earnings 3,600.00

Cash 3,600.00
 to record payments of dividents to shareholders

Notes Payable 20,000.00

Interest Expense 1,600.00
Cash 21,600.00
to record payment of Notes Payable and Interest

Land 50,000.00
Cash 10,000.00
Mortgage Paayble 40,000.00
to record purchase of land

ADJUSTING JOURNAL ENTRIES

DATE ACCT NO. ACCT NAME Dr Cr

Cost of Goods Sold 57,000.00

Inventory 57,000.00

Wages Expense 10,000.00

Wages Payable 10,000.00

Insurance Expense 2,500.00

Prepaid Insurance 2,500.00

Depreciation Expense 5,000.00

Accumulated Expense 5,000.00
 Woo, Incorporated
STATEMENTS OF FINANCIAL POSITION
As of December 31, 2015
(amounts in Philippine Peso)

2015
AS S ETS
ASSETS
Cash ₱ 109,800.00
Accounts Receivable 34,000.00
Inventory 28,000.00
Prepaid Rent 28,000.00
Prepaid Insurance 2,500.00
Security Deposits 1,000.00
Furnitures and Fixtures 110,000.00
Accumulated Depreciation (25,000.00)
Land 50,000.00
TOTAL ASSETS ₱ 338,300.00

LIABILITIES AND EQUITY

LIABILITIES
Accounts Payable ₱ 20,000.00
Wages Payable 10,000.00
Taxes Payable 25,170.00
Rent Payable 2,000.00
Notes Payable 60,000.00
Mortgage Payable 40,000.00
TOTAL LIABILITIES ₱ 157,170.00

EQUITY
Common Stock ₱ 36,000.00
Retained Earnings 145,130.00
TOTAL EQUITY ₱ 181,130.00

TOTAL LIABILITIES AND EQUITY ₱ 338,300.00

Woo, Incorporated
STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2015
(amounts in Philippine Peso)

2015
Sales ₱ 180,000.00
Cost of Goods Sold (57,000.00)
Gross Profit 123,000.00
Other Expenses:
Wages Expense 28,000.00
Insurance Expense 2,500.00
Depreciation Expenses 5,000.00
Interest Expense 1,600.00
Advertising Expense 2,000.00 (39,100.00)
Profit Before Tax 83,900.00
Income Tax Expense (25,170.00)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ₱ 58,730.00
 Woo, Incorporated
STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2015
(amounts in Philippine Peso)

2015
CAPITAL ACCOUNTS
Balance at the beginning of the year ₱ 30,000.00
Additional Investment 6,000.00
Withdrawal -
Balance, Dec. 31, 2015 ₱ 36,000.00

RETAINED EARNINGS
Balance, Dec. 31, 2014 ₱ 90,000.00
Income Summary 58,730.00
Dividends Paid (3,600.00)
Balance, Dec. 31, 2015 ₱ 145,130.00

Woo, Incorporated
STATEMENTS OF CASH FLOWS
For the year ended December 31, 2015
(amounts in Philippine Peso)

CASH BEGINNING BALANCE ₱ 50,000.00

Cash flows from operating
Payment of Accounts Payable (22,000.00)
Collection of Accounts Receivable 55,000.00
Purchase of Inventory (10,000.00)
Sale of Inventory 126,000
Payment of Taxes (5,000.00)
Payment of Wages (25,000.00)
Payment of Prepaid Rent (28,000.00)
Payment of Advertising Expense (2,000.00)
TOTAL CASH FLOWS FROM OPERATING 89,000.00

Cash flows from investing

Purchase of Land (10,000.00)

TOTAL CASH FLOWS FROM INVESTING (10,000.00)

Cash flows from financing

Issuance of Share Capital 6,000.00
Payment of Dividents (3,600.00)
Payment of Notes Payable and Interest (21,600.00)
TOTAL CASH FLOWS FROM FINANCING (19,200.00)

CASH ENDING BALANCE ₱ 109,800.00

 W

December 31, 2014 2015 Transactions

ACCOUNT TITLE DEBIT CREDIT DEBIT
Cash ₱ 50,000.00 ₱ 59,800.00
Accounts Receivable 35,000.00
Inventory 45,000.00 40,000.00
Prepaid Rent 28,000.00
Prepaid Insurance 5,000.00
Security Deposits 1,000.00
Furnitures and Fixtures 110,000.00
Accumulated Depreciation 20,000.00
Land 50,000.00
TOTAL ASSETS 226,000.00

Accounts Payable 12,000.00

Wages Payable 7,000.00 7,000.00
Taxes Payable 5,000.00 5,000.00
Rent Payable 2,000.00
Notes Payable 80,000.00 20,000.00
Mortgage Payable
TOTAL LIABILITIES 106,000.00

Common Stock 30,000.00

Retained Earnings 90,000.00 3,600.00
TOTAL EQUITY 120,000.00

TOTAL LIABILITIES AND EQUITY 226,000.00

Sales
Cost of Goods Sold
Wages Expense 18,000.00
Insurance Expense
Depreciation Expenses 1,600.00
Interest Expense 2,000.00
Advertising Expense
Taxes Expense
Income Summary

TOTAL ₱ 235,000.00
 Woo, Incorporated
Working Paper
December 31, 2015

UNADJUSTED TRIAL BALANCE ADJUSTING ENTRIES ADJUSTED BALANCE

2015 Transactions December 31, 2015 December 31, 2015 December 31, 2015
CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
₱ 109,800.00 ₱ 109,800.00
1,000.00 34,000.00 34,000.00
85,000.00 57,000.00 28,000.00
28,000.00 28,000.00
5,000.00 2,500.00 28,000.00
1,000.00 2,500.00
110,000.00 1,000.00
20,000.00 5,000.00 110,000.00
50,000.00
50,000.00

8,000.00 20,000.00
10,000.00
25,170.00
2,000.00
60,000.00
40,000.00 40,000.00

36,000.00
6,000.00 86,400.00

180,000.00 180,000.00
57,000.00 57,000.00
18,000.00 10,000.00 28,000.00
2,500.00 2,500.00
5,000.00 5,000.00
1,600.00 1,600.00
2,000.00 2,000.00
25,170.00 25,170.00

₱ 235,000.00 ₱ 444,400.00 ₱ 444,400.00 ₱ 74,500.00 ₱ 74,500.00 ₱ 484,570.00

ADJUSTED BALANCE CLOSING ENTRIES
December 31, 2015 December 31, 2015
CREDIT DEBIT CREDIT

25,000.00

20,000.00
10,000.00
25,170.00
2,000.00
60,000.00
40,000.00

36,000.00
86,400.00 58,730.00

180,000.00 180,000.00
57,000.00
28,000.00
2,500.00
5,000.00
1,600.00
2,000.00
25,170.00
58,730.00 58,730.00

₱ 484,750.00
Gross Sales
Cost of Goods Sold
Gross Income from Operation
Other Income
Dividends from resident foreign corporation
Total Gross Income
Deductions
Wages Expense
Insurance Expense
Depreciation Expenses
Interest Expense
Advertising Expense
Taxable Income

Tax Due
Less:
Cumulative quarterly income tax paid
Cumulative creditable withholding tax
TAX PAYABLE
 ₱ 180,000.00
(57,000.00)
123,000.00

25,000.00
148,000.00

28,000.00
2,500.00
5,000.00
1,600.00
2,000.00 (39,100.00)
108,900.00

32,670.00

75,155.00
77,750.00
(120,235.00)