FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…
Question

What is the adjusted trial balance?

(f) On April 1, 2021, the firm purchased equipment to be used in the office for P300,000. The furniture was estimated to have a useful life of five years with no salvage value. Record an adjustment for depreciation on the furniture for September. (g) The allowance for doubtful accounts is to be increased to 3% of outstanding accounts receivable. Record an adjustment for the expected loss from uncollectible accounts for the month of September. (h) On September 26, 2021, Tayane Alves contracted the firm to deliver specialized automobile part. The firm received P81,240 in advance from the customer and was recorded as unearned revenue. Parts worth 50,000 remained undelivered by month-end Record an adjustment for the revenue earned from this contract. (i) Based on a physical count, ending inventory was determined to be P6,481,600. Record an adjustment for the ending inventory.
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Transcribed Image Text:(f) On April 1, 2021, the firm purchased equipment to be used in the office for P300,000. The furniture was estimated to have a useful life of five years with no salvage value. Record an adjustment for depreciation on the furniture for September. (g) The allowance for doubtful accounts is to be increased to 3% of outstanding accounts receivable. Record an adjustment for the expected loss from uncollectible accounts for the month of September. (h) On September 26, 2021, Tayane Alves contracted the firm to deliver specialized automobile part. The firm received P81,240 in advance from the customer and was recorded as unearned revenue. Parts worth 50,000 remained undelivered by month-end Record an adjustment for the revenue earned from this contract. (i) Based on a physical count, ending inventory was determined to be P6,481,600. Record an adjustment for the ending inventory.
The Unadjusted Trial Balance was prepared on September 30, 2021, which is shown below. Account Name Dr Cr Cash Petty Cash Fund Notes Receivable, due May 1, 2022 Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Warehouse Equipment Accumulated Depreciation - Warehouse Equipment Office Equipment Accumulated Depreciation - Office Equipment Notes Payable, due June 30 2022 Accounts Payable Interest Payable Unearned Revenue Notes Payable, Long term Vincent Fabron, Capital Vincent Fabron, Drawing Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchase Returns and Allowances Purchase Discounts Delivery Expense Depreciation Expense - Office Equipment Depreciation Expense - Warehouse Equipment Doubtful Accounts Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Repairs Expense Salaries Expense - Warehouse Salaries Expense - Office Salaries Expense - Sales SSS, Philhealth, Pagibig Expenses Warehouse Supplies Expense Telephone Expense Travel Expense - Sales Utilities Expense 4,950,000 30,000 750,000 7,010,000 10,500 6,425,000 165,000 35,000 154,667 990,000 470,000 1,532,500 420,000 23,150,000 490,000 1,871,250 25.000 15.000 190,000 77,333 200,000 61,000 280,000 185,000 5,430,000 4,250,000 7,585,000 1,580,000 290,000 164,000 1,200,000 400,000 70,386,250 190,000 15,000 25,000 750,000 2,845,000 20,000 81.240 850,000 14,838,500 49,761,510 Rent Expense, Repairs Expense, and Utilities Expense are shared as follows: 10% for the office, 30% for the store, and 60% for the warehouse. 10,500 537,500 462,000 70,386,250
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Transcribed Image Text:The Unadjusted Trial Balance was prepared on September 30, 2021, which is shown below. Account Name Dr Cr Cash Petty Cash Fund Notes Receivable, due May 1, 2022 Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Warehouse Equipment Accumulated Depreciation - Warehouse Equipment Office Equipment Accumulated Depreciation - Office Equipment Notes Payable, due June 30 2022 Accounts Payable Interest Payable Unearned Revenue Notes Payable, Long term Vincent Fabron, Capital Vincent Fabron, Drawing Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchase Returns and Allowances Purchase Discounts Delivery Expense Depreciation Expense - Office Equipment Depreciation Expense - Warehouse Equipment Doubtful Accounts Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Repairs Expense Salaries Expense - Warehouse Salaries Expense - Office Salaries Expense - Sales SSS, Philhealth, Pagibig Expenses Warehouse Supplies Expense Telephone Expense Travel Expense - Sales Utilities Expense 4,950,000 30,000 750,000 7,010,000 10,500 6,425,000 165,000 35,000 154,667 990,000 470,000 1,532,500 420,000 23,150,000 490,000 1,871,250 25.000 15.000 190,000 77,333 200,000 61,000 280,000 185,000 5,430,000 4,250,000 7,585,000 1,580,000 290,000 164,000 1,200,000 400,000 70,386,250 190,000 15,000 25,000 750,000 2,845,000 20,000 81.240 850,000 14,838,500 49,761,510 Rent Expense, Repairs Expense, and Utilities Expense are shared as follows: 10% for the office, 30% for the store, and 60% for the warehouse. 10,500 537,500 462,000 70,386,250
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