advance for P 60,000. B. On October 1, 2016, Mr. Kemeki, open a consulting firm The business adjusts and closes its accounts at the end of each month. The following trial balance was prepared after one month of operations. More information: • No interest has yet been paid on the note payable. Accrued interest at October 30 amounts to P 600. • Salaries eamed by the employees but not yet recorded or paid amounted to P3000 by October 30. • Many clients are asked to make advance payment for consulting services to be rendered in future months. These advances are credited to the Uneamed Service Revenue account once received. During April, P 6,000 of these advances were earned by the business. 116 • Supplies on hand by October 30 amounted to P 900. • The office equipment was purchased on October 1 and is being depreciated over an estimated useful life of 10 years with no residual value. Unadjusted Trial Balance Cash P20,000 Accounts Receivable 1,500 Prepaid Expenses 6,800 Supplies 2,000 Furniture and Fixture 52,800 Accumulated Depreciation- Fumiture PO Notes Payable 32,000 Interest Payable Uneamed Service revenue 14,000 Okayi, Capital 42,000 Okayi, Drawings 3,000 Service revenue 2,100 Supplies Expense 2,800 Salaries Expense 1,200 P90,100 P90,100 Requirement: 1. Prepare the adjusting entries. 2. Prepare a statement of comprehensive income. 3. Prepare a statement of financial position.
advance for P 60,000. B. On October 1, 2016, Mr. Kemeki, open a consulting firm The business adjusts and closes its accounts at the end of each month. The following trial balance was prepared after one month of operations. More information: • No interest has yet been paid on the note payable. Accrued interest at October 30 amounts to P 600. • Salaries eamed by the employees but not yet recorded or paid amounted to P3000 by October 30. • Many clients are asked to make advance payment for consulting services to be rendered in future months. These advances are credited to the Uneamed Service Revenue account once received. During April, P 6,000 of these advances were earned by the business. 116 • Supplies on hand by October 30 amounted to P 900. • The office equipment was purchased on October 1 and is being depreciated over an estimated useful life of 10 years with no residual value. Unadjusted Trial Balance Cash P20,000 Accounts Receivable 1,500 Prepaid Expenses 6,800 Supplies 2,000 Furniture and Fixture 52,800 Accumulated Depreciation- Fumiture PO Notes Payable 32,000 Interest Payable Uneamed Service revenue 14,000 Okayi, Capital 42,000 Okayi, Drawings 3,000 Service revenue 2,100 Supplies Expense 2,800 Salaries Expense 1,200 P90,100 P90,100 Requirement: 1. Prepare the adjusting entries. 2. Prepare a statement of comprehensive income. 3. Prepare a statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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