Problemt No. 1- Fallen Moon Legal Services Below are the details from the books of Fallen Moon Legal Service. FALLEN MOON Legal Service Owned and Operated by John Lloyd Cruz Unadjusted Trial Balance December 31, 20x0 Acct No. Account title Debit Credit 101 Cash 78,400 8,900 2,500 6,000 75,000 102 Accounts Receivable 106 Office Supplies Prepaid Insurance Furniture and Equipment Accounts Payable Loan Payable John Lloyd Cruz, Capital John Lloyd Cruz, Drawing Legal Fees Salary Expense Advertising Expense Utilities Expense Miscellaneous Expense 105 108 30,000 60,000 60,000 201 205 301 302 12,000 44,400 401 5,500 501 3,600 1,500 1,000 503 504 509 194,400 194,400 Total The expanded chart of Accounts Listed below will be used as reference: Acct No. Account title Acct No. Account title 101 Cash 401 Legal Fees Salary Expense Rent Expense Advertising Expense 102 Accounts Receivable 501 104 Prepaid Advertising Prepaid Insurance Office Supplies Furniture and Equipment Accumulated Depreciation Accounts Payable Accrued Rent Expense 502 105 503 106 504 Utilities Expense 108 505 Insurance Expense Supplies Expense Depreciation Expense Miscellaneous Expense Interest Expense 109 506 201 507 202 509 203 Accrued Interest Expense 510 204 Unearned Legal Fees Loans Payable John Lloyd Cruz, Capital John Lloyd Cruz, Drawing 205 301 302 Total Additional Information 1. The one year P6,000 insurance paid and effectivity was on December 1, 20x0, 2. Office Rental of P4,000 for the month of December 20x0 was still unpaid. 3. Interest of 18% per annum on the P60,000 bank loan granted on December 11, 20x0 has accrued. 4. Advertising placement of P3,600 for three (3) months was effective on December 1, 20x0. 5. Fees of P5,000 collected in advance on December 30 will be for services to be rendered next year. 6. Office Supplies unused at the end of the month amounted to PI,600 7. Furniture and Equipment are estimated to have a useful life of ten years. It was decided to provide depreciation for December 20x0.

Problemt No. 1- Fallen Moon Legal Services Below are the details from the books of Fallen Moon Legal Service. FALLEN MOON Legal Service Owned and Operated by John Lloyd Cruz Unadjusted Trial Balance December 31, 20x0 Acct No. Account title Debit Credit 101 Cash 78,400 8,900 2,500 6,000 75,000 102 Accounts Receivable 106 Office Supplies Prepaid Insurance Furniture and Equipment Accounts Payable Loan Payable John Lloyd Cruz, Capital John Lloyd Cruz, Drawing Legal Fees Salary Expense Advertising Expense Utilities Expense Miscellaneous Expense 105 108 30,000 60,000 60,000 201 205 301 302 12,000 44,400 401 5,500 501 3,600 1,500 1,000 503 504 509 194,400 194,400 Total The expanded chart of Accounts Listed below will be used as reference: Acct No. Account title Acct No. Account title 101 Cash 401 Legal Fees Salary Expense Rent Expense Advertising Expense 102 Accounts Receivable 501 104 Prepaid Advertising Prepaid Insurance Office Supplies Furniture and Equipment Accumulated Depreciation Accounts Payable Accrued Rent Expense 502 105 503 106 504 Utilities Expense 108 505 Insurance Expense Supplies Expense Depreciation Expense Miscellaneous Expense Interest Expense 109 506 201 507 202 509 203 Accrued Interest Expense 510 204 Unearned Legal Fees Loans Payable John Lloyd Cruz, Capital John Lloyd Cruz, Drawing 205 301 302 Total Additional Information 1. The one year P6,000 insurance paid and effectivity was on December 1, 20x0, 2. Office Rental of P4,000 for the month of December 20x0 was still unpaid. 3. Interest of 18% per annum on the P60,000 bank loan granted on December 11, 20x0 has accrued. 4. Advertising placement of P3,600 for three (3) months was effective on December 1, 20x0. 5. Fees of P5,000 collected in advance on December 30 will be for services to be rendered next year. 6. Office Supplies unused at the end of the month amounted to PI,600 7. Furniture and Equipment are estimated to have a useful life of ten years. It was decided to provide depreciation for December 20x0.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.3E

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