Nilo Burgos Haulers is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Calabarzon region. At the end of accounting year, Dec. 31,2011, the following data must be considered to effect the adjusting entries: d. In Dec. 2011, a real property tax assessment for P 16,000 on land owned during 2011 was received from the city. The taxes, which are unpaid and unrecorded, are already due but the company intends to pay them on Feb. 15,2012. e. On Dec.21,2011, Burgos completed a bulk-hauling contract. The bill was for P80,000 payable within 30 days. No cash has been collected, and no journal entry has been made for this transaction. f. On July 1,2011, the company purchase a new hauling van at a cash price of P236,000. The estimated useful life of the van was 10 years, with
Nilo Burgos Haulers is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Calabarzon region. At the end of accounting year, Dec. 31,2011, the following data must be considered to effect the adjusting entries: d. In Dec. 2011, a real property tax assessment for P 16,000 on land owned during 2011 was received from the city. The taxes, which are unpaid and unrecorded, are already due but the company intends to pay them on Feb. 15,2012. e. On Dec.21,2011, Burgos completed a bulk-hauling contract. The bill was for P80,000 payable within 30 days. No cash has been collected, and no journal entry has been made for this transaction. f. On July 1,2011, the company purchase a new hauling van at a cash price of P236,000. The estimated useful life of the van was 10 years, with
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Nilo Burgos Haulers is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Calabarzon region. At the end of accounting year, Dec. 31,2011, the following data must be considered to effect the adjusting entries :
d. In Dec. 2011, a real property tax assessment for P 16,000 on land owned during 2011 was received from the city. The taxes, which are unpaid and unrecorded, are already due but the company intends to pay them on Feb. 15,2012.
e. On Dec.21,2011, Burgos completed a bulk-hauling contract. The bill was for P80,000 payable within 30 days. No cash has been collected, and no journal entry has been made for this transaction.
f. On July 1,2011, the company purchase a new hauling van at a cash price of P236,000. The estimated useful life of the van was 10 years, with an estimated residual value of P36,000. No depreciation has been recorded for 2011. (Compute depreciation for 6 months in 2011)
g. On Oct 1,2011, Burgos borrowed P100,000 from a multipurpose cooperative on a 6 months, 12% per annum note payable. The principal plus interest is payable at the end of 6 months.
Required:
Prepare the adjusting entries.
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