FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hyun Bin started his accounting consultancy business on January 1, 2021. During the first month of the business, the following transactions occurred:
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Hyun Bin purchased a laptop on January 1, 2021 for ₱50,000. 30% of the purchase price was paid in cash, the balance was subject to a 2-year note at 3% interest.
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Vera expects that the laptop will be used in the business for 3 years.
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On January 5, Vera received ₱12,000 for services to be rendered on the succeeding 4 months.
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On January 3, Vera purchased a 1-year insurance policy for ₱24,000.
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Office supplies purchased cost ₱15,000. A count of supplies at month-end indicates ₱12,000 supplies are on hand.
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On January 31, Hyun Bin received a bill from the lessor for January rent amounting to ₱16,000, and utilities amounting to ₱4,000.
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Services performed to clients but were not yet billed amounted to ₱7,850.
REQUIRED (show supporting calculations):
1. Prepare the
2. Prepare the adjusting entries on January 31 if the company makes use of the expense/revenue method.
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