EXERCISE #2 Adjusting Entries (ADOPTED) For each of the following independent situations, journalize the adjusting entry needed on December 31: A. The business issued a note payable. Interest expense incurred but not yet paid amounted to Php 4,800. B. Service revenue earned but not yet billed to the clients totaled Php 12,600. C. On July 1, we received Php 120,000 advanced rent for two years, which was debited to Cash and credited to Unearned Rent Revenue. As of December 31, Php 30,000 has been earned by the company. D. On October 1, we prepaid Php 36,000 for one-year insurance policy. The amount was debited to Prepaid Insurance and credited to Cash. As of December 31, Php 9,000 has expired. E. The Supplies account currently has a balance of Php 13,000. Supplies on hand at December 31 amounts to Php 2,600. Supplies used up amounts to Php 10,400. F. Equipment was purchased last year at a cost of Php 96,000. The equipment was estimated to have a residual value of Php 6,000 and useful life of five years. Record the depreciation for the year. G. The employees' salaries for a five-day workweek amounts to Php 60,000. Salaries are paid every Friday. This year's December 31 falls on a Tuesday. Unpaid salaries amount to Php 24,000 as of December 31.
EXERCISE #2 Adjusting Entries (ADOPTED) For each of the following independent situations, journalize the adjusting entry needed on December 31: A. The business issued a note payable. Interest expense incurred but not yet paid amounted to Php 4,800. B. Service revenue earned but not yet billed to the clients totaled Php 12,600. C. On July 1, we received Php 120,000 advanced rent for two years, which was debited to Cash and credited to Unearned Rent Revenue. As of December 31, Php 30,000 has been earned by the company. D. On October 1, we prepaid Php 36,000 for one-year insurance policy. The amount was debited to Prepaid Insurance and credited to Cash. As of December 31, Php 9,000 has expired. E. The Supplies account currently has a balance of Php 13,000. Supplies on hand at December 31 amounts to Php 2,600. Supplies used up amounts to Php 10,400. F. Equipment was purchased last year at a cost of Php 96,000. The equipment was estimated to have a residual value of Php 6,000 and useful life of five years. Record the depreciation for the year. G. The employees' salaries for a five-day workweek amounts to Php 60,000. Salaries are paid every Friday. This year's December 31 falls on a Tuesday. Unpaid salaries amount to Php 24,000 as of December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Record the transactions in a journal using the account titles below
-
-Prepare the unjusted
Transcribed Image Text:ZOOM +
Press Esc to exit full screen
EXERCISE ##2
Adjusting Entries
(ADOPTED) For each of the following independent situations, journalize the adjusting
entry needed on December 31:
A. The business issued a note payable. Interest expense incurred but not yet paid
amounted to Php 4,800.
B. Service revenue earned but not yet billed to the clients totaled Php 12,600.
C. On July 1, we received Php 120,000 advanced rent for two years, which was
debited to Cash and credited to Unearned Rent Revenue. As of December 31, Php
30,000 has been earned by the company.
D. On October 1, we prepaid Php 36,000 for one-year insurance policy. The amount
was debited to Prepaid Insurance and credited to Cash. As of December 31, Php
9,000 has expired.
E. The Supplies account currently has a balance of Php 13,000. Supplies on hand at
December 31 amounts to Php 2,600. Supplies used up amounts to Php 10,400.
F. Equipment was purchased last year at a cost of Php 96,000. The equipment was
estimated to have a residual value of Php 6,000 and useful life of five years. Record
the depreciation for the year.
G. The employees' salaries for a five-day workweek amounts to Php 60,000. Salaries
are paid every Friday. This year's December 31 falls on a Tuesday. Unpaid
salaries amount to Php 24,000 as of December 31.
Transcribed Image Text:ZOOM +
Press Esc to exit full screen
Exercise #1
Trial Balance Preparation
(ADOPTED) The trial balance of Tokyo's Portrait as of July 31, 2021 is shown below. It
does not balance because of a number of errors.
DEBIT
CREDIT
CASH
14,200
18,900
3,751
3,200
57,380
ACCOUNTS RECEIVABLE
SUPPLIES
PREPAID INSURANCE
EQUIPMENT
ACCOUNTS PAYABLE
8,400
6,000
52,000
NOTES PAYABLE
TOKYO, CAPITAL
TOKYO, DRAWING
PHOTOGRAPHY REVENUE
4,000
114,760
WAGES EXPENSE
43,810
20,000
RENT EΧΡENSE
ADVERTISING EXPENSE
476
UTILITIES EXPENSE
7,240
172,957
ТОTAL
181,160
A. A debit of Php 200 to Cash was posted as Php 2,000.
B. A debit of Php 1,500 to Accounts Receivable was not posted.
C. A return of Php 67 of defectives supplies was erroneously posted as a Php 76
credit to supplies.
D. An insurance policy acquired at a cost of Php 1,080 was posted as a credit to
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education