The Trial Balance of Jesus Jose Mini Mart & General Merchandise is prepared bythe bookkeeper last December 31, 2019. (60 minutes)DebitCreditCash in bank75,000AccountsReceivable100,000200,000 Merchandise Inventory300,000Notes Receivable50,000Delivery TruckDisplay CabinetsAccounts PayableJesus Jose Capital100,000150,00045,000 Notes Payable223,000Sales500,000Sales discounts1,000Salaries and wages50,000Store supplies expense7,000Maintenance expense15,00013Utilities expenses20,000Totals918,000918,000===============Notes for adjustment (First: Assume the books are still open; Second: assume thatthe books are closed)1. The delivery truck is not provided with depreciation. It was purchased lastApril 1, 2019. The estimated life is 20 years with no residual value. It is the policyof the company to depreciate its assets using the straight-line method. 2. Thedisplay cabinet was purchase January 1, 2019. Estimated life is 5 years. Straightline method is to be used.3. Cash sales amounting to PHP56,000 last December 31, 2019 was unrecorded.4. Salaries and wages are overstated by PHP10,000.5. Monthly amortization on the notes payable amounting to PHP10,000 was paid bycheck during December but not yet recorded.Direction: Answer the following questions in a separate bond paper. Show the entrymade, should be entry and adjusting entry.1. What is the adjusting entry for delivery truck?2. What is the adjusting entry for display cabinet?3. What is the adjusting entry for the unrecorded sales?

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Answered: 1. What is the adjusting entry for…

1. What is the adjusting entry for delivery truck? 2. What is the adjusting entry for display cabinet? 3. What is the adjusting entry for the unrecorded sales?

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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Question

The Trial Balance of Jesus Jose Mini Mart & General Merchandise is prepared by
the bookkeeper last December 31, 2019. (60 minutes)
Debit
Credit
Cash in bank
75,000
Accounts
Receivable
100,000
200,000 Merchandise Inventory
300,000
Notes Receivable
50,000
Delivery Truck
Display Cabinets
Accounts Payable
Jesus Jose Capital
100,000
150,000
45,000 Notes Payable
223,000
Sales
500,000
Sales discounts
1,000
Salaries and wages
50,000
Store supplies expense
7,000
Maintenance expense
15,000
13
Utilities expenses
20,000
Totals
918,000
918,000
=======
========
Notes for adjustment (First: Assume the books are still open; Second: assume that
the books are closed)
1. The delivery truck is not provided with depreciation. It was purchased last
April 1, 2019. The estimated life is 20 years with no residual value. It is the policy
of the company to depreciate its assets using the straight-line method. 2. The
display cabinet was purchase January 1, 2019. Estimated life is 5 years. Straight
line method is to be used.
3. Cash sales amounting to PHP56,000 last December 31, 2019 was unrecorded.
4. Salaries and wages are overstated by PHP10,000.
5. Monthly amortization on the notes payable amounting to PHP10,000 was paid by
check during December but not yet recorded.
Direction: Answer the following questions in a separate bond paper. Show the entry
made, should be entry and adjusting entry.
1. What is the adjusting entry for delivery truck?
2. What is the adjusting entry for display cabinet?
3. What is the adjusting entry for the unrecorded sales?

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