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aceres Realty end its fiscal vear on June 30, 2019.

aceres Realty end its fiscal vear on June 30, 2019.

FINANCIAL ACCOUNTING
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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Adjusting Entries Additional Exercises Caceres Realty end its fiscal year on June 30, 2019. Required: Using the following information, make the necessary adjusting entries on June 30, 2019. 1. Rent of office premises of P18,000 for the 3-month period ending July 31 is due to be paid in July. 2. The telephone expense of P1,500 is unpaid and unrecorded at June 30. 3. The supplies account had a P2,900 debit balance on July 1 of the preceding year. Supplies costing P8,450 were purchased during the year, and P1,780 of supplies are in inventory as at June 30. 4. Caceres Realty borrowed P50,000 from BDC Bank on May 1 at 18% interest per annum. The principal, plus interest, is payable on November 1. 5. Annual depreciation is to be taken for the equipment which costs P130,000 and has a useful life of 5 years with salvage value of P10,000. 6. The office assistant earns P280 a day. She will be paid in July for the 5-day period ending July 3. 7. On June 1, Caceres received 2 months' rent in advance, totaling P9,000. This was recorded by a credit to Unearned Rental Revenue. 8. Caceres Realty purchased a 6-month insurance policy for P18,000 on November 1. A 24-month policy was purchased on April 30 for P43,200. Both purchases were recorded by debiting Prepaid Insurance.
Transcribed Image Text:Adjusting Entries Additional Exercises Caceres Realty end its fiscal year on June 30, 2019. Required: Using the following information, make the necessary adjusting entries on June 30, 2019. 1. Rent of office premises of P18,000 for the 3-month period ending July 31 is due to be paid in July. 2. The telephone expense of P1,500 is unpaid and unrecorded at June 30. 3. The supplies account had a P2,900 debit balance on July 1 of the preceding year. Supplies costing P8,450 were purchased during the year, and P1,780 of supplies are in inventory as at June 30. 4. Caceres Realty borrowed P50,000 from BDC Bank on May 1 at 18% interest per annum. The principal, plus interest, is payable on November 1. 5. Annual depreciation is to be taken for the equipment which costs P130,000 and has a useful life of 5 years with salvage value of P10,000. 6. The office assistant earns P280 a day. She will be paid in July for the 5-day period ending July 3. 7. On June 1, Caceres received 2 months' rent in advance, totaling P9,000. This was recorded by a credit to Unearned Rental Revenue. 8. Caceres Realty purchased a 6-month insurance policy for P18,000 on November 1. A 24-month policy was purchased on April 30 for P43,200. Both purchases were recorded by debiting Prepaid Insurance.
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