Account Titie and Explanation Debit Credit Cash P10,060 Accounts Receivable 2,000 Prepaid Expenses 7,800 Supplies Office Equipment 1,460 26,400 Accum. Depreciation Eqpt. Notes Payable 16,000 Interest Payable Unearned Service Revenue 15,020 Lester Rome, Capital 22,000 Lester Rome, Withdrawal 3,000 Service Revenue 1,580 Supplies Expense 2,680 Salaries Expense 1,200 P54,600 P54,600 More information: No interest has yet been paid on the note payable. It bears 10% interest per annum payable for 1 year. Salaries earned by the office staff but not yet recorded or paid amounted to P970 by April 30. Many clients are asked to make advance payment for accounting services to be rendered in future months. During April, P5,020 of these advances were earned by the business. Office Supplies on hand by April 30 amounted to P400. The office equioment was acquired on April 1 and is being depreciated over an estimated useful life of 10 years with no residual value. The company sets up 1% provision for total collectible. equired: Prepare the adjusting entries

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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PREPARE ADJUSTING ENTRIES

Account Titie and Explanation
Debit
Credit
Cash
P10,060
Accounts Receivable
2,000
Prepaid Expenses
7,800
Supplies
Office Equipment
1,460
26,400
Accum. Depreciation Eqpt.
Notes Payable
16,000
Interest Payable
Unearned Service Revenue
15,020
Lester Rome, Capital
22,000
Lester Rome, Withdrawal
3,000
Service Revenue
1,580
Supplies Expense
2,680
Salaries Expense
1,200
P54,600
P54,600
More information:
1) No interest has yet been paid on the note payable. It bears 10% interest per
annum payable for 1 year.
2) Salaries earned by the office staff but not yet recorded or paid amounted to
P970 by April 30.
3) Many clients are asked to make advance payment for accounting services to
be rendered in future months. During April, P5,020 of these advances were
earned by the business.
4) Office Supplies on hand by April 30 amounted to P400.
5) The office equioment was acquired on April 1 and is being depreciated over
an estimated useful life of 10 years with no residual value.
6) The company sets up 1% provision for total collectible.
Required:
Prepare the adjusting entries
Transcribed Image Text:Account Titie and Explanation Debit Credit Cash P10,060 Accounts Receivable 2,000 Prepaid Expenses 7,800 Supplies Office Equipment 1,460 26,400 Accum. Depreciation Eqpt. Notes Payable 16,000 Interest Payable Unearned Service Revenue 15,020 Lester Rome, Capital 22,000 Lester Rome, Withdrawal 3,000 Service Revenue 1,580 Supplies Expense 2,680 Salaries Expense 1,200 P54,600 P54,600 More information: 1) No interest has yet been paid on the note payable. It bears 10% interest per annum payable for 1 year. 2) Salaries earned by the office staff but not yet recorded or paid amounted to P970 by April 30. 3) Many clients are asked to make advance payment for accounting services to be rendered in future months. During April, P5,020 of these advances were earned by the business. 4) Office Supplies on hand by April 30 amounted to P400. 5) The office equioment was acquired on April 1 and is being depreciated over an estimated useful life of 10 years with no residual value. 6) The company sets up 1% provision for total collectible. Required: Prepare the adjusting entries
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