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Additional Information a. Physical count of unused supplies on December 31 were conducted and amounted to P900. b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago. c.  Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period. d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year. e. The balance of unearned fees at December 31 should be P5,500. f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.

Additional Information a. Physical count of unused supplies on December 31 were conducted and amounted to P900. b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago. c.  Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period. d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year. e. The balance of unearned fees at December 31 should be P5,500. f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.

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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Instructions: Prepare an Income Statement. Your guide is the new ending balance after adjustments for each account.

Additional Information

a. Physical count of unused supplies on December 31 were conducted and amounted to P900.

b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago.

c.  Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period.

d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year.

e. The balance of unearned fees at December 31 should be P5,500.

f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.

ADJUSTED TRIAL BALANCE ACCOUNT DEBIT CREDIT SUPPLIES 1800 PREPAID RENT 12000 ACCOUNTS RECEIVABLE 12250 ACCUMULATED DEPRECIATION 7000 SALARY PAYABLE 5500 UNEARNED FEES 21000 SUPPLY EXPENSES 1800 DEPRECIATION EXP 7000 RENT EXP 12000 SALARY EXP 5500 FEES EARNED 21000 FEES EARNED 12250 ТOTALS 59550 59550
Transcribed Image Text:ADJUSTED TRIAL BALANCE ACCOUNT DEBIT CREDIT SUPPLIES 1800 PREPAID RENT 12000 ACCOUNTS RECEIVABLE 12250 ACCUMULATED DEPRECIATION 7000 SALARY PAYABLE 5500 UNEARNED FEES 21000 SUPPLY EXPENSES 1800 DEPRECIATION EXP 7000 RENT EXP 12000 SALARY EXP 5500 FEES EARNED 21000 FEES EARNED 12250 ТOTALS 59550 59550
Selected account balances before adjustments for Lopez Realty Agency on December 31, 2021 are as follows: Accounts receivable P 29,250 Unearned Fees P 26,500 + Supplies 2,700 Fees Earned 299,800 Prepaid Rent 18,000 Salary Expense 60,000 Equipment 70,000 Rent Expense 24,000 Accumulated Depreciation 14,000 Supplies Expense Salary Payable O Depreciation Expense Lopez has a P 136,350 cash on hand balance on December 31, 2021.
Transcribed Image Text:Selected account balances before adjustments for Lopez Realty Agency on December 31, 2021 are as follows: Accounts receivable P 29,250 Unearned Fees P 26,500 + Supplies 2,700 Fees Earned 299,800 Prepaid Rent 18,000 Salary Expense 60,000 Equipment 70,000 Rent Expense 24,000 Accumulated Depreciation 14,000 Supplies Expense Salary Payable O Depreciation Expense Lopez has a P 136,350 cash on hand balance on December 31, 2021.
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