1. Prepare the adjusting entries for April 2. Set up the following ledger accounts and post al the adjusting entries 3. Prepare the Adjusted Trial Balance Alisse Go-o is a skipper, owner of a speedboat tour company, Go-o Fast Inc. During the month of April. she has the following transactions. Apr. 2 Invested in the speedboat valued at P5,000,000 and placed P500,000 in a business checking account. 3 Acquired equipment costing P560,500. Paid P230,000 cash and signed a note for the balance. 4 Purchased supplies on account for P45,000 and paid for fuel P2,000. 5 Toured and billed a group of customers P25,000. 7 Received P17.000 cash for servicing. 10 Paid for fuel for P4.000. 11 Received a P25,000 check from the group billed on April 5. 12 Paid P100,000 for an insurance policy for a one-year coverage. 13 Billed and collected cash from customers P30,000. 14 Paid employees P25,000. 15 Paid P10,000 for repair of the speedboat. 18 Paid supplies purchased on April 4. 20 Purchased a new wheel for Alisse own car for P1,000 and supplies of P10,000 on account. 22 Received an internet bill for P4.000, due next month. 23 Received P20,000 in cash from the customer billed in April 13. 24 Transferred P15,000 to personal checking account. 25 Received P20,000 in cash from tour services. 27 Paid P50,000 on the note signed for the equipment. 30 Paid employees P25,000. At the end of the month, additional information available to Go-o Fast Inc. are as follows: a. Alisse conducted physical inventory count of the supplies and it showed that supplies costing P15,000 are still on hand. b. The speedboat has a 10-year useful life and no residual value. On the otherhand, the equipment has a 5-year useful life with P2,500 salvage value. c. Alisse thinks she already incurred insurance expense. d. The note she acquired has 9% annual interest and it will be payable on March 31, 2025. e. On April 30, she received cash from a group of customers, in advance for a tour on May 15, 2024. f. Alisse estimated that 0.5% of her accounts receivable will not be collected.
1. Prepare the adjusting entries for April 2. Set up the following ledger accounts and post al the adjusting entries 3. Prepare the Adjusted Trial Balance Alisse Go-o is a skipper, owner of a speedboat tour company, Go-o Fast Inc. During the month of April. she has the following transactions. Apr. 2 Invested in the speedboat valued at P5,000,000 and placed P500,000 in a business checking account. 3 Acquired equipment costing P560,500. Paid P230,000 cash and signed a note for the balance. 4 Purchased supplies on account for P45,000 and paid for fuel P2,000. 5 Toured and billed a group of customers P25,000. 7 Received P17.000 cash for servicing. 10 Paid for fuel for P4.000. 11 Received a P25,000 check from the group billed on April 5. 12 Paid P100,000 for an insurance policy for a one-year coverage. 13 Billed and collected cash from customers P30,000. 14 Paid employees P25,000. 15 Paid P10,000 for repair of the speedboat. 18 Paid supplies purchased on April 4. 20 Purchased a new wheel for Alisse own car for P1,000 and supplies of P10,000 on account. 22 Received an internet bill for P4.000, due next month. 23 Received P20,000 in cash from the customer billed in April 13. 24 Transferred P15,000 to personal checking account. 25 Received P20,000 in cash from tour services. 27 Paid P50,000 on the note signed for the equipment. 30 Paid employees P25,000. At the end of the month, additional information available to Go-o Fast Inc. are as follows: a. Alisse conducted physical inventory count of the supplies and it showed that supplies costing P15,000 are still on hand. b. The speedboat has a 10-year useful life and no residual value. On the otherhand, the equipment has a 5-year useful life with P2,500 salvage value. c. Alisse thinks she already incurred insurance expense. d. The note she acquired has 9% annual interest and it will be payable on March 31, 2025. e. On April 30, she received cash from a group of customers, in advance for a tour on May 15, 2024. f. Alisse estimated that 0.5% of her accounts receivable will not be collected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Prepare the adjusting entries for April
2. Set up the following ledger accounts and post al the adjusting entries
3. Prepare the Adjusted Trial Balance
Alisse Go-o is a skipper, owner of a speedboat tour company, Go-o Fast Inc. During the month of April.
she has the following transactions.
Apr.
2 Invested in the speedboat valued at P5,000,000 and placed P500,000 in a business checking
account.
3 Acquired equipment costing P560,500. Paid P230,000 cash and signed a note for the
balance.
4 Purchased supplies on account for P45,000 and paid for fuel P2,000.
5 Toured and billed a group of customers P25,000.
7
Received P17.000 cash for servicing.
10 Paid for fuel for P4.000.
11 Received a P25,000 check from the group billed on April 5.
12 Paid P100,000 for an insurance policy for a one-year coverage.
13 Billed and collected cash from customers P30,000.
14 Paid employees P25,000.
15 Paid P10,000 for repair of the speedboat.
18 Paid supplies purchased on April 4.
20 Purchased a new wheel for Alisse own car for P1,000 and supplies of P10,000 on account.
22 Received an internet bill for P4.000, due next month.
23 Received P20,000 in cash from the customer billed in April 13.
24 Transferred P15,000 to personal checking account.
25 Received P20,000 in cash from tour services.
27 Paid P50,000 on the note signed for the equipment.
30 Paid employees P25,000.
At the end of the month, additional information available to Go-o Fast Inc. are as follows:
a. Alisse conducted physical inventory count of the supplies and it showed that supplies costing
P15,000 are still on hand.
b. The speedboat has a 10-year useful life and no residual value. On the otherhand, the equipment
has a 5-year useful life with P2,500 salvage value.
c. Alisse thinks she already incurred insurance expense.
d. The note she acquired has 9% annual interest and it will be payable on March 31, 2025.
e. On April 30, she received cash from a group of customers, in advance for a tour on May 15,
2024.
f. Alisse estimated that 0.5% of her accounts receivable will not be collected.
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