Entity A started operations on November 1, 20x1. The following were the transactions during the period: Nov. Transactions 1 Provided ₱100,000 cash as initial investment to the business. 1 Acquired equipment for ₱72,000 cash. The equipment has a useful life of 4 years. Entity A records depreciation expense only at year-end. 1 Paid a one-year insurance premium of ₱24,000. (Use ‘asset method’) 12 Purchased inventory costing ₱30,000 for cash. (Use periodic inventory system) 14 Sold goods for ₱30,000 cash. Dec. Transactions 1 Sold goods with sale price of ₱24,000 in exchange for a ₱24,000, 10%, one-year note receivable. Principal and interest are due at maturity. 5 Purchased inventory for ₱4,000 on account. 26 Sold goods for ₱34,000 on account. 27 Paid ₱2,000 account payable. 29 Collected ₱20,000 account receivable. Additional information: There is no beginning inventory. The ending inventory per physical count is ₱21,000. Entity A determines at year-end that accounts receivable of ₱2,000 is doubtful of collection. Salaries earned by employees during the period but were not yet paid amounted to ₱20,000. Requirements: Provide the journal entries for the transactions. Post the entries to the ledger using T-accounts. Prepare the unadjusted trial balance using a worksheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Entity A started operations on November 1, 20x1. The following were the transactions during the period:

*Nov.*	*Transactions*
1	Provided ₱100,000 cash as initial investment to the business.
1	Acquired equipment for ₱72,000 cash. The equipment has a useful life of 4 years. Entity A records depreciation expense only at year-end.
1	Paid a one-year insurance premium of ₱24,000. (Use ‘asset method’)
12	Purchased inventory costing ₱30,000 for cash. (Use periodic inventory system)
14	Sold goods for ₱30,000 cash.

*Dec.*	*Transactions*
1	Sold goods with sale price of ₱24,000 in exchange for a ₱24,000, 10%, one-year note receivable. Principal and interest are due at maturity.
5	Purchased inventory for ₱4,000 on account.
26	Sold goods for ₱34,000 on account.
27	Paid ₱2,000 account payable.
29	Collected ₱20,000 account receivable.

Additional information:

There is no beginning inventory. The ending inventory per physical count is ₱21,000.
Entity A determines at year-end that accounts receivable of ₱2,000 is doubtful of collection.
Salaries earned by employees during the period but were not yet paid amounted to ₱20,000.

Requirements:

Provide the journal entries for the transactions.
Post the entries to the ledger using T-accounts.
Prepare the unadjusted trial balance using a worksheet.
Prepare the adjusting entries.
Complete the worksheet.
Prepare the closing entries.
Prepare the balance sheet and income statement.
Prepare the reversing entries to be recorded in the next accounting period

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions