1. Dr. Vicky Bella, a consultant, employs one college student every summer to help her in her research work. As researcher, the student works five weekdays (Monday to Friday) for P450 per day and is paid every Saturday. The last three days of May will be paid on June 3. The calendar from May 21 to June 3 is reproduced below. Dr. Vicky uses the fiscal period ending May 31. Wed 24 31 Thu Fri Sun 21 28 Mon 22 29 Tue 23 30 Sat 27 25 26 2 3 Required: Prepare the adjustment for accrued salary on May 31.
1. Dr. Vicky Bella, a consultant, employs one college student every summer to help her in her research work. As researcher, the student works five weekdays (Monday to Friday) for P450 per day and is paid every Saturday. The last three days of May will be paid on June 3. The calendar from May 21 to June 3 is reproduced below. Dr. Vicky uses the fiscal period ending May 31. Wed 24 31 Thu Fri Sun 21 28 Mon 22 29 Tue 23 30 Sat 27 25 26 2 3 Required: Prepare the adjustment for accrued salary on May 31.
Chapter9: Accounting For Receivables
Section: Chapter Questions
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Transcribed Image Text:10:43 O
f Activity 6 - Adj.
Activity 6- Adjusting Entries
1. Dr. Vicky Bella, a consultant, employs one college student every summer to help her in her
research work. As researcher, the student works five weekdays (Monday to Friday) for P450 per
day and is paid every Saturday. The last three days of May will be paid on June 3. The calendar
from May 21 to June 3 is reproduced below. Dr. Vicky uses the fiscal period ending May 31.
Mon
Tue
Wed
Sun
21
28
Thu
Fri
Sat
22
29
23
24
25
26
27
30
31
2
3
Required: Prepare the adjustment for accrued salary on May 31.
2. On September 15, Berto Motor Service Center issued a 90-day, 18% note amounting to P10,000
for a loan from a friend. The service center uses the fiscal accounting period ending September
30.
Required: Entries on date of issue and end of September.
3. Shaine Monte started a magazine publication called The Good Life. A subscriber pays P100 for one
issue. Fifty subscribers made a one year payment on March 1 and another 100 subscribers on
August 1 which Monte credited to Advances from Subscribers. She sends the magazine to each of
these subscribers every month.
Required:
a. Make the entry to record collections received on March 1 and August 1.
b. Assuming no changes in subscribers, compute for the Subscription Revenue that she
should report at the end of December and prepare the journal entry to adjust the liability
to a revenue account.
4. Master Architect designs houses for various clients. Its unadjusted trial balance as of December
31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two
accounts collected in advance: November 10 Monson account, P200,000 and December 15
Samson account, P150,000. It takes S0 days for a design to be finished and delivered.
Required:
a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees.
b. Make postings to the general ledger accounts appearing below.
Unearned Professional Fees
404
Explanation
Ref Dehit
Date
Credit
Balance
2018
Nov. 10
Collection from Monson
GJ 11
P200,000
150.000
P200,000
Dec. 15
Collection from Samson
GJ 12
350,000
Dec. 31
AE
Professional Fees
702
Date
Explanation
Ref
Debit
t
Credit
Balance
2018
Total services rendered.
GI 12
P1,000,000 P1,000,000
Dec. 31
AE 2
5. Leonard Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurance
for one year P12,000. The building has an estimated useful life of ten years and a P200,000
residual value.
Required:
a. Give the entry for the purchase of the building.
b. Give the entry to record the payment for prepaid insurance.
c. Give the entry to adjust for depreciation on December 31, 2017.
d. Give the entry to adjust for expired insurance on December 31, 2017
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