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 Notes Receivable 200,000 Merchandise Inventory 300,000 50,000 Delivery Truck Display Cabinets Accounts Payable Jesus Jose Capital 100,000 150,000 45,000 Notes Payable 223,000 Sales Sales discounts 500,000 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? 4. What is the adjusting entry for overstated salaries and wages? 5. What is the adjusting entry for the unrecorded monthly amortization payment?
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 Notes Receivable 200,000 Merchandise Inventory 300,000 50,000 Delivery Truck Display Cabinets Accounts Payable Jesus Jose Capital 100,000 150,000 45,000 Notes Payable 223,000 Sales Sales discounts 500,000 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? 4. What is the adjusting entry for overstated salaries and wages? 5. What is the adjusting entry for the unrecorded monthly amortization payment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
4 and 5
Transcribed Image Text: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
Notes Receivable
200,000 Merchandise Inventory
300,000
50,000
Delivery Truck
Display Cabinets
Accounts Payable
Jesus Jose Capital
100,000
150,000
45,000 Notes Payable
223,000
Sales
Sales discounts
500,000
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?
4. What is the adjusting entry for overstated salaries and wages?
5. What is the adjusting entry for the unrecorded monthly amortization payment?
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