Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.

Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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