Make the adjusted trial balance The Unadjusted Trial Balance was prepared on September 30, 2021, which is shown belowAccount NameCrCashDr4,950,00030,000750,000Petty Cash FundNotes Receivable, due March 31 2022Accounts Receivable7,010,000Allowance for Doubtful Accounts.190,000Interest Receivable7,500Merchandise Inventory6,425,000Warehouse Supplies165,000Office Supplies35,000Prepaid Insurance232,000Warehouse Equipment990,000Accumulated Depreciation - Warehouse Equipment15,000Office Equipment470,00025,000Accumulated Depreciation - Office EquipmentNotes Payable, due June 30 2022750,000Accounts Payable2,845,000Interest Payable20,000Notes Payable, Long term850,000Vincent Fabron, Capital14,838,500Vincent Fabron, Drawing1,532,500Income SummarySales50,515,000Sales Returns and Allowances420,000Interest Income29,000Purchases23,150,000Freight InPurchase Returns and AllowancesPurchase DiscountsDelivery ExpenseDepreciation Expense - Office EquipmentDepreciation Expense - Warehouse EquipmentDoubtful Accounts ExpenseInsurance ExpenseInterest ExpenseOffice Supplies ExpenseRent ExpenseRepairs ExpenseSalaries Expense - WarehouseSalaries Expense - OfficeSalaries Expense - SalesSSS, Philhealth, Pagibig ExpensesSupplies Expense - WarehouseTelephone ExpenseTravel Expense - SalesUtilities Expense490,0001,871,25081,000170,000179,000493,750200,00061,000280,000185,0005,430,0004,250,0007,585,0001,580,000290,000164,0001,200,000400,00071,077,000 71,077,000537,500462,000 (a) On September 30, the firm received its utilities bill for the month of September amountingto P14,300. This remains to be unpaid at month-end. Record an adjustment for the utilitiesfor the month of September.(b) On September 21, the firm received a 6% 90-day note for money lent to Ling Ying Weiamounting to P400,000. Record an adjustment for the accrued interest from the note for themonth of September.(c) On September 30, an inventory of Warehouse Supplies and Office Supplies showed thatitems costing P127,000 and P12,000 were on hand respectively. Record an adjustment forthe supplies used in September.(d) On July 1, 2021, the firm purchased a six-month insurance policy for P464,000. Recordan adjustment for the expired insurance in September. Round-off answer to the nearestpeso.(e) On April 1, 2021, the firm purchased an equipment to be used in the warehouse forP200,000. The equipment was estimated to have a useful life of five years and a salvagevalue of 10% of cost. Record an adjustment for depreciation on the equipment forSeptember.(f) On April 1, 2021, the firm purchased equipment to be used in the office for P300,000. Thefurniture was estimated to have a useful life of five years with no salvage value. Record anadjustment for depreciation on the furniture for September.(g) The allowance for doubtful accounts is to be increased by 1% of accounts receivable.Record an adjustment for the expected loss from uncollectible accounts for the month ofSeptember.(h) On September 26, 2021, Tayane Alves contracted the firm to deliver specializedautomobile part. The firm received P81,240 in advance from the customer. These partshave not been delivered by month-end and this transaction was recorded as a normal saleon the same date. Record an adjustment for the unearned revenue.(i) Based on a physical count, ending inventory was determined to be P6,481,600.Record an adjustment for the ending inventory.

Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

The Unadjusted Trial Balance was prepared on September 30, 2021, which is shown below Account Name Cr Cash Dr 4,950,000 30,000 Petty Cash Fund Notes Receivable, due March 31 2022 750,000 Accounts Receivable 7,010,000 Allowance for Doubtful Accounts 190,000 Interest Receivable 7,500 Merchandise Inventory 6,425,000 Warehouse Supplies 165,000 Office Supplies 35,000 Prepaid Insurance 232,000 Warehouse Equipment 990,000 15,000 Accumulated Depreciation - Warehouse Equipment Office Equipment 470,000 25,000 Accumulated Depreciation - Office Equipment Notes Payable, due June 30 2022 750,000 Accounts Payable 2,845,000 Interest Payable 20,000 Notes Payable, Long term 850,000 Vincent Fabron, Capital 14,838,500 Vincent Fabron, Drawing 1,532,500 Income Summary Sales 50,515,000 Sales Returns and Allowances 420,000 Interest Income 29,000 Purchases 23,150,000 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 Supplies Expense - Warehouse Telephone Expense Travel Expense - Sales Utilities Expense 490,000 1,871,250 81,000 170,000 179,000 493,750 200,000 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 71,077,000 537,500 462,000 71,077,000

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q