CHART OF ACCOUNTS

ASSETS
101 Cash
201 Accounts Receivables
301 Computer Supplies
401 Prepaid Insurance
402 Prepaid Rent
501 Computer System
502 Office Equipment

LIABILITIES
601 Accounts Payable
701 Wages Payable
801 Unearned Computer Services Revenue

CAPITAL
901 Namikaze Capital
902 Namikaze Withdrawal
951 Computer Services Revenue
981 Repair Expense
982 Advertising Expense
983 Wages Expense
984 Mileage Expense
985 Miscellaneous Expense
986 Rent Expense
987 Computer Supplies Expense
988 Insurance Expense
989 Depreciation Expense - Office Equipment
990 Depreciation Expense - Computer System
991 Accumulated Depreciation - Computer System
992 Accumulated Depreciation - Office Equipment
1001 Income Summary
UNTS
Cash and Cash Equivalents
Loans and Receivables
Inventories
Other Current Assets

Property, Plant and Equipment

Accounts and Other Payables

Accrued Liabilities
Deferred Liabilities

Owner's Equity
Revenue

Expenses
FOR THE LAST QUARTER OF 2019

October 1 Cash 275,000.00

Computer System 100,000.00
Office Equipment 40,000.00
Namikaze Capital
Owner invests cash and equipment

2 Prepaid Rent 16,500.00

Cash
Paid four months' rent in advance

3 Computer Supplies 7,100.00

Accounts Payable
Purchased supplies on credit.

5 Prepaid Insurance 11,100.00

Cash
Paid 12 months' premium in advance.

6 Accounts Receivable 24,000.00

Computer Services Revenue
Billed customer for services.

8 Accounts Payable 7,100.00

Cash
Paid balance due on accounts payable.

10 No entry necessary in the journal.

12 Accounts Receivable 7,000.00

Computer Services Revenue
Billed customer for services.
 15 Cash 24,000.00
Accounts Receivable
Collected accounts receivable.

17 Repair Expense 4,025.00

Cash
Paid for computer repairs.

20 Advertising Expense 9,700.00

Cash
Purchased ads in local newspaper.

22 Cash 7,000.00
Accounts Receivable
Collected accounts receivable.

28 Accounts Receivable 26,040.00

Computer Services Revenue
Billed customer for services.

31 Wages Expense 4,375.00

Cash
Paid employee for part-time work.

Namikaze Withdrawal 18,000.00

Cash
Withdrew cash for personal use

November 1 Mileage Expense 1,600.00

Cash
Reimbursed Namikaze for mileage.

2 Cash 23,165.00
Computer Services Revenue
Collected cash revenue from client.

5 Computer Supplies 5,625.00

Cash
Purchased computer supplies for cash.

8 Accounts Receivable 28,340.00

Computer Services Revenue
Billed customer for services.
 13 No entry necessary.

18 Cash 11,040.00
Accounts Receivable
Collected accounts receivable.

22 Miscellaneous Expense 1,250.00

Cash
Record donation.

24 Accounts Receivable 19,750.00

Computer Services Revenue
Billed customer for services.

25 No entry necessary.

28 Mileage Expense 1,920.00

Cash
Reimbursed Namikaze for mileage.

30 Wages Expense 8,750.00

Cash
Paid employee for part-time work.

Namikaze Withdrawal 10,000.00

Cash
Withdrew cash for personal use

December 2 Advertising Expense 5,125.00

Cash
Paid share of mall advertising costs.

3 Repairs Expense 2,500.00

Cash
Paid minor repairs to company's computer.

4 Cash 19,750.00
Accounts Receivable
Collected accounts receivable.

10 Wages Expense 3,750.00

Cash
Paid employee for part-time work.

14 Cash 7,500.00
 Unearned Computer Services Revenue
Received advance on work to be performed.

15 Computer Supplies 5,500.00

Accounts Payable
Purchased supplies on credit.

16 No entry necessary.

20 Cash 28,125.00
Computer Services Revenue
Collected cash revenue from client.

28 Cash 15,000.00
Accounts Receivable
Collected accounts receivable.

29 Mileage Expense 960.00

Cash
Reimbursed Namikaze for mileage.

31 Namikaze Withdrawal 7,500.00

Cash
Withdrew cash for personal use
 ADDITIONAL JOURNAL ENTRIES
d Depreciation Expense - Computer System
Accumulated Depreciation - Computer Syste

415,000.00 e Depreciation Expense - Office Equipment

Accumulated Depreciation - Office Equipmen

f Rent Expense
16,500.00 Prepaid Rent

a Computer Supplies Expense

7,100.00 Computer Supplies

b Insurance Expense
11,100.00 Prepaid Insurance

24,000.00

7,100.00

7,000.00
24,000.00

4,025.00

9,700.00

7,000.00

26,040.00

c Wages Expense
4,375.00 Wages Payable

18,000.00

1,600.00

23,165.00

5,625.00

28,340.00
11,040.00

1,250.00

19,750.00

1,920.00

8,750.00

10,000.00

5,125.00

2,500.00

19,750.00

3,750.00
 7,500.00

5,500.00

28,125.00

15,000.00

960.00

7,500.00
 6,250.00
ciation - Computer Syste 6,250.00

2,000.00
ciation - Office Equipmen 2,000.00

12,375.00
12,375.00

15,905.00
15,905.00

2,775.00
2,775.00
2,500.00
2,500.00
 Date PARTICULARS Cash

02-Oct-19 Paid four months' rent in advance

03-Oct-19 Purchased supplies on credit.
05-Oct-19 Paid 12 months' premium in advance.
06-Oct-19 Billed customer for services.
08-Oct-19 Paid balance due on accounts payable.
12-Oct-19 Billed customer for services.
15-Oct-19 Collected accounts receivable. 24,000.00
17-Oct-19 Paid for computer repairs.
20-Oct-19 Purchased ads in local newspaper.
22-Oct-19 Collected accounts receivable. 7,000.00
28-Oct-19 Billed customer for services.
31-Oct-19 Paid employee for part-time work.
31-Oct-19 Withdrew cash for personal use
01-Nov-19 Reimbursed Namikaze for mileage.
02-Nov-19 Collected cash revenue from client. 23,165.00
05-Nov-19 Purchased computer supplies for cash.
08-Nov-19 Billed customer for services.
18-Nov-19 Collected accounts receivable. 11,040.00
22-Nov-19 Record donation.
24-Nov-19 Billed customer for services.
28-Nov-19 Reimbursed Namikaze for mileage.
30-Nov-19 Paid employee for part-time work.
30-Nov-19 Withdrew cash for personal use
02-Dec-19 Paid share of mall advertising costs.
03-Dec-19 Paid minor repairs to company's computer.
04-Dec-19 Collected accounts receivable. 19,750.00
10-Dec-19 Paid employee for part-time work.
14-Dec-19 Received advance on work to be performed. 7,500.00
15-Dec-19 Purchased supplies on credit.
20-Dec-19 Collected cash revenue from client. 28,125.00
28-Dec-19 Collected accounts receivable. 15,000.00
29-Dec-19 Reimbursed Namikaze for mileage.
31-Dec-19 Withdrew cash for personal use
31-Dec-19 Accrued wages for 4 days work
31-Dec-19 Recording depreciation expense for computer system
31-Dec-19 Recording depreciation expense for office equipment
31-Dec-19 Three month's prepaid rent has expired
31-Dec-19 Computer supplies used
31-Dec-19 Three months of 12-month insurance premium have expired

135,580.00
 D

Accounts Repair Mileage Miscellaneous Wages Namikaze

Payable Expense Expense Expense Expense Withdrawal

7,100.00

4,025.00

4,375.00
18,000.00
1,600.00

1,250.00

1,920.00
8,750.00
10,000.00

2,500.00

3,750.00

960.00
7,500.00
2,500.00

7,100.00 6,525.00 4,480.00 1,250.00 19,375.00 35,500.00

 Debit
Depreciation
Depreciation
Advertising Prepaid Rent
Computer Prepaid
Expense -
Expense -
Expense Supplies Insurance
Computer System
Office
Equipment

16,500.00
7,100.00
11,100.00

9,700.00

5,625.00

5,125.00

5,500.00

6,250.00
2,000.00

14,825.00 16,500.00 18,225.00 11,100.00 6,250.00 2,000.00

Computer
Insurance Rent Accounts Accounts
Supplies Cash
Expense
Expense Expense Receivable Payable

16,500.00
7,100.00
11,100.00
24,000.00
7,100.00
7,000.00

4,025.00
9,700.00

26,040.00
4,375.00
18,000.00
1,600.00

5,625.00
28,340.00

1,250.00
19,750.00
1,920.00
8,750.00
10,000.00
5,125.00
2,500.00

3,750.00

5,500.00

960.00
7,500.00

12,375.00
15,905.00
2,775.00

15,905.00 2,775.00 12,375.00 105,130.00 119,780.00 12,600.00

 CREDIT

Accumulated
Accounts Receivable Unearned Computer Wages
Computer Services
Depreciation -
Revenue Services Revenue Payable
Computer System

24,000.00

7,000.00
24,000.00

7,000.00
26,040.00

23,165.00

28,340.00
11,040.00

19,750.00

19,750.00

7,500.00

28,125.00
15,000.00

2,500.00
6,250.00

156,420.00 76,790.00 7,500.00 2,500.00 6,250.00

 Accumulated
Prepaid Computer Prepaid
Depreciation - Office
Rent Supplies Insurance
Equipment

2,000.00
12,375.00
15,905.00
2,775.00

2,000.00 12,375.00 15,905.00 2,775.00

Other Transactions With Accruals

Namikaze
Date PARTICULARS
Withdrawal

31-Oct-19 Withdrew cash for personal use 18,000.00

30-Nov-19 Withdrew cash for personal use 10,000.00
31-Dec-19 Withdrew cash for personal use 7,500.00
31-Dec-19 Accrued wages for 4 days work
31-Dec-19 Computer supplies used
31-Dec-19 Recording depreciation expense for computer system
31-Dec-19 Recording depreciation expense for office equipment
01-Jan-20 Three month's prepaid rent has expired
02-Jan-20 Three months of 12-month insurance premium have expired

35,500.00
 Debit

Computer Depreciation
Depreciation
Expense - Rent Insurance
Wages expense Supplies Expense - Office
Computer
Equipment
Expense Expense
Expense System

2,500.00
15,905.00
6,250.00
2,000.00
12,375.00
2,775.00

2,500.00 15,905.00 6,250.00 2,000.00 12,375.00 2,775.00

 CREDIT

Accumulated Accumulated
Wages Computer Depreciation - Office Prepaid
Cash Depreciation -
Payable Supplies Computer System Equipment Rent

18,000.00
10,000.00
7,500.00
2,500.00
15,905.00
6,250.00
2,000.00
12,375.00

35,500.00 2,500.00 15,905.00 6,250.00 2,000.00 12,375.00

 Prepaid
Insurance

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,775.00 0.00
0.00
2,775.00 0.00
Account No.

101
201
301
401
402
501
502
601
701
801
901
902
951
981
982
983
984
985
986
987
988
989
990
991
992
1001
Cash
Accounts Receivables
Computer Supplies
Prepaid Insurance
Prepaid Rent
Computer System
Office Equipment
Accounts Payable
Wages Payable
Unearned Computer Services Revenue
Namikaze Capital
Namikaze Withdrawal
Computer Services Revenue
Repair Expense
Advertising Expense
Wages Expense
Mileage Expense
Miscellaneous Expense
Rent Expense
Computer Supplies Expense
Insurance Expense
Depreciation Expense - Office Equipment
Depreciation Expense - Computer System
Accumulated Depreciation - Computer System
Accumulated Depreciation - Office Equipment
Income Summary
 KONOHAGAKURE SYSTEMS
TRIAL BALANCE
FOR THE FOURTH QUARTER

As of October 1, 2019 Transactions (November and December)

Dr Cr Dr
275,000.00 135,580.00
105,130.00
18,225.00
11,100.00
16,500.00
100,000.00
40,000.00
7,100.00

415,000.00
35,500.00

6,525.00
14,825.00
19,375.00
4,480.00
1,250.00
12,375.00
15,905.00
2,775.00
2,000.00
6,250.00

415,000.00 415,000.00 414,895.00

0.00
ions (November and December) Closing As of December 31, 2019
Cr
119,780.00 290,800.00
76,790.00 28,340.00
15,905.00 2,320.00
2,775.00 8,325.00
12,375.00 4,125.00
100,000.00
40,000.00
12,600.00
2,500.00
7,500.00

35,500.00
156,420.00 156,420.00
6,525.00
14,825.00
19,375.00
4,480.00
1,250.00
12,375.00
15,905.00
2,775.00
2,000.00
6,250.00
6,250.00
2,000.00
70,660.00

414,895.00 156,420.00 156,420.00 509,410.00

0.00 0.00
s of December 31, 2019

5,500.00
2,500.00
7,500.00
485,660.00

6,250.00
2,000.00

509,410.00
0.00
 Konohagakure Systems
Income Statement
For the year ended December 31, 2019
Note
REVENUE ITEM
951 Computer Services Revenue (9) 156,420.00
Total Revenues 156,420.00

EXPENSE ITEMS
981 Repair Expense 6,525.00
982 Advertising Expense 14,825.00
983 Wages Expense (10) 19,375.00
984 Mileage Expense 4,480.00
985 Miscellaneous Expense 1,250.00
986 Rent Expense 12,375.00
987 Computer Supplies Expense (11) 15,905.00
988 Insurance Expense 2,775.00
989 Depreciation Expense - Office Equipment (12) 2,000.00
990 Depreciation Expense - Computer System (12) 6,250.00
Total Expenses 85,760.00
NET SURPLUS/(NET LOSS) 70,660.00
 Konohagakure Systems
Statement of Changs in Equity
For the year ended December 31, 2019

901 Namikaze Capital ,October 1 415,000.00

Investments during the year -
Add: Net Income for the year 70,660.00
Total 70,660.00
902 Namikaze Withdrawal 35,500.00
Net Increase in owner's equity 35,160.00

901 Namikaze Capital ,December 31 450,160.00

 Konohagakure Sys
BALANCE SHE
DECEMBER 31,
Note
ASSETS
Current Assets
101 Cash (4)
201 Accounts Receivables (5)
301 Computer Supplies
401 Prepaid Insurance (6)
402 Prepaid Rent (6)
Total Current Asset

Non Current Asset

501 Computer System (7) 100,000.00
991 Accumulated Depreciation - Computer System (7) 6,250.00
502 Office Equipment (7) 40,000.00
992 Accumulated Depreciation - Office Equipment (7) 2,000.00
Total Non Current Asset
TOTAL ASSET
Konohagakure Systems
BALANCE SHEET
DECEMBER 31, 2019
Note
LIABILITIES
Current Liabilities
290,800.00 601 Accounts Payable (8)
28,340.00 701 Wages Payable (8)
2,320.00 801 Unearned Computer Services Revenue (8)
8,325.00 Total Current Liabilities
4,125.00 Non Current Liabilities
333,910.00 Total Liabilities

Owner's Equity
93,750.00 901 Namikaze Capital
902 Namikaze Withdrawal
38,000.00 Total Owner's Equity
131,750.00
465,660.00 TOTAL LIABILITIES AND EQUITY
 5,500.00
2,500.00
7,500.00
15,500.00
-
15,500.00

485,660.00
35,500.00 450,160.00
450,160.00

465,660.00
 Konohagakure Systems
Statement of Cash Flows
For the year ended December 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 70,660.00
Increase in Accounts Receivable - 28,340.00
Increase in Prepaid Rent - 4,125.00
Increase in Prepaid Insurance - 8,325.00
Increase in Computer Supplies - 2,320.00
Depreciation 8,250.00
Increase in Accounts Payable 5,500.00
Increase in Wages Payable 2,500.00
Increase in Unearned Computer Services Revenue 7,500.00
Net cash generated from (used in) operations 51,300.00

CASH FLOWS FROM INVESTING ACTIVITIES

0.00
Cash used in investing activities -

CASH FLOWS FROM FINANCING ACTIVITIES

Withdrawals - 35,500.00
Net cash provided by (used in) financing activities - 35,500.00

NET INCREASE (DECREASE) IN CASH A 15,800.00

CASH AT BEGINNING OF OPERATIONS 275,000.00

CASH AT END OF YEAR 290,800.00

-
 Notes to Financial Statements

Note 4: Cash
Cash as of December 31 consists of:

Cash 2019
Cash on Hand 290,800.00
Total Cash 290,800.00

Note 5: Trade and Other Receivables

Trade and Other Receivables as of December 31 consist of:

Trade and Other Receivables 2019

Accounts Receivables 28,340.00
Total Trade and Other Receivables 28,340.00

Note 6: Other Current Assets

Other Current Assets as of December 31 consist of:

Other Current Assets 2019

Computer Supplies 2,320.00
Prepaid Rent 4,125.00
Prepaid Insurance 8,325.00
Total Other Current Assets 14,770.00

Note 7: Property, plant, and equipment

Property, Plant and Equipment, net as of December 31, consist of:

Property, Plant and Equipment 2019

Computer System 100,000.00
Accumulated Depreciation - Computer System 6,250.00
Carrying Amount 93,750.00

Office Equipment 40,000.00

Accumulated Depreciation - Office Equipment 2,000.00
Carrying Amount 38,000.00
Total Property, Plant and Equipment 131,750.00

Note 8: Trade and Other Payables

Trade and Other Payables as of December 31 consist of:

Trade and Other Payables 2019

Accounts Payable 5,500.00
Wages Payable 2,500.00
Unearned Computer Services Revenue 7,500.00
Total Trade and Other Payables 15,500.00

Note 9: Income
Income as of December 31 consists of

Income 2019
Computer Services Revenue 156,420.00
Total Income 156,420.00

Note 10: Employee Benefit Cost

Employee Benefit Cost as of December 31 consists of

Employee Benefit Cost 2019

Wages Expense 19,375.00
Total Wages Expense 19,375.00

Note 11: Supplies Expense

Supplies Expense as of December 31 consist of:

Supplies Expense 2019

Computer Supplies Expense 15,905.00
Total Supplies Expense 15,905.00

Note 12: Depreciation Expense

Depreciation Expense as of December 31 consist of:

Depreciation Expense 2019

Depreciation Expense-Office Equipment 2,000.00
Depreciation Expense-Computer System 6,250.00
Total Depreciation Expense 8,250.00
CASH RECEIPTS BOOKS

Date Payor Particulars

15-Oct-19 Rasengan Leasing Collected accounts receivable.
22-Oct-19 Rasengan Leasing Collected accounts receivable.
02-Nov-19 Naruto Corporation Collected cash revenue from client.
18-Nov-19 ROK Company Collected accounts receivable.
04-Dec-19 Kakashi's Engineering Co Collected accounts receivable.
14-Dec-19 Kakashi's Engineering Co Received advance on work to be performed.
20-Dec-19 Naruto Corporation Collected cash revenue from client.
28-Dec-19 Boruto Co Collected accounts receivable.
Debit Credit

Unearned
Computer Computer Services
Accounts Services Revenue Revenue
Cash Receivable
24,000.00 24,000.00 0.00
7,000.00 7,000.00 0.00
23,165.00 23,165.00 0.00
11,040.00 11,040.00 0.00
19,750.00 19,750.00 0.00
7,500.00 7,500.00 0.00
28,125.00 28,125.00 0.00
15,000.00 15,000.00 0.00
0.00
0.00
0.00
135,580.00 76,790.00 51,290.00 7,500.00
CASH DISBURSEMENT BOOKS
Credit

Date Payee Particulars Cash

02-Oct-19 Paid four months' rent in advance 16,500.00
05-Oct-19 Paid 12 months' premium in advance. 11,100.00
08-Oct-19 Jiraiya Office Products Paid balance due on accounts payable. 7,100.00
17-Oct-19 Paid for computer repairs. 4,025.00
20-Oct-19 Purchased ads in local newspaper. 9,700.00
31-Oct-19 Kushina Uzumaki Paid employee for part-time work. 4,375.00
01-Nov-19 Minato Namikaze Reimbursed Namikaze for mileage. 1,600.00
05-Nov-19 Jiraiya Office Products Purchased computer supplies for cash. 5,625.00
22-Nov-19 United Shinobi Record donation. 1,250.00
28-Nov-19 Minato Namikaze Reimbursed Namikaze for mileage. 1,920.00
30-Nov-19 Kushina Uzumaki Paid employee for part-time work. 8,750.00
02-Dec-19 Minatwice Mall Paid share of mall advertising costs. 5,125.00
03-Dec-19 Paid minor repairs to company's computer. 2,500.00
10-Dec-19 Kushina Uzumaki Paid employee for part-time work. 3,750.00
29-Dec-19 Minato Namikaze Reimbursed Namikaze for mileage. 960.00

84,280.00
 Debit
Miscellan
Prepaid Accounts Repair Advertising eous Mileage
Prepaid Rent Insurance Payable Expense Expense Expense Expense
16,500.00
11,100.00
7,100.00
4,025.00
9,700.00

1,600.00

1,250.00
1,920.00

5,125.00
2,500.00

960.00

16,500.00 11,100.00 7,100.00 6,525.00 14,825.00 1,250.00 4,480.00

Computer Wages
Supplies Expense
0.00
0.00
0.00
0.00
0.00
4,375.00 0.00
0.00
5,625.00 0.00
0.00
0.00
8,750.00 0.00
0.00
0.00
3,750.00 0.00
0.00
0.00
5,625.00 16,875.00
 Financial Analysis of Konohagakure Syste

a. Current Assets Current Liabilities

333,910.00 15,500.00

b. Total Liabilities Total Assets

15,500.00 465,660.00

c. Total Liabilities Total Equity

15,500.00 450,160.00

d. Net Income Ave. Total Asset

70,660.00 232,830.00

e. Net Income Average Equity

70,660.00 225,080.00
of Konohagakure Systems

Current Ratio
21.54

Debt Ratio
3.33%

Debt-to-Equity Ratio
3.44%

Return on Assets
30.35%

Return on Equity
31.39%
SALES BOOKS

Date Customers Particulars

06-Oct-19 Rasengan Leasing Billed customer for services.
12-Oct-19 Rasengan Leasing Billed customer for services.
28-Oct-19 ROK Company Billed customer for services.
02-Nov-19 Naruto Corporation Collected cash revenue from client.
08-Nov-19 Boruto Co. Billed customer for services.
24-Nov-19 Kakashi's Engineering Company Billed customer for services.
14-Dec-19 Kakashi's Engineering Co Received advance on work to be performed.
20-Dec-19 Naruto Corporation Collected cash revenue from client.
 VATABLE Non-VAT
Unearned Computer
Computer Services Services Revenue
Accounts Receivable Output VAT Revenue
24,000.00 2,571.43 21,428.57
7,000.00 750.00 6,250.00
26,040.00 2,790.00 23,250.00
23,165.00 2,481.96 20,683.04
28,340.00 3,036.43 25,303.57
19,750.00 2,116.07 17,633.93
7,500.00 803.57 6,696.43
28,125.00 3,013.39 25,111.61
163,920.00 17,562.86 139,660.71 6,696.43 0.00
Non-VAT

0.00 0.00
PURCHASE BOOKS

Date Suppliers Particulars Accounts Payable

03-Oct-19 Jiraiya Office Products Purchased supplies on credit. 6,339.29
05-Nov-19 Jiraiya Office Products Purchased computer supplies for ca 5,022.32
15-Dec-19 Jiraiya Office Products Purchased supplies on credit. 4,910.71
16,272.32
 VAT Purchases
Input VAT Computer Supplies
760.71 7,100.00
602.68 5,625.00
589.29 5,500.00
1,952.68 18,225.00 0.00 0.00 0.00
 Non-VAT Purchases

0.00 0.00 0.00