Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance he prepared himself. He understands that he needs to make some adjusting entries at the end of the year. However, is unsure how to make the adjustments and he came up to you for assistance. Fernandez Housing Trial Balance December 31, 2018 Cash P503,000.00 15,000.00 20,000.00 Account receivable Office supplies Prepaid insurance Housing unit Accounts payable 24,000.00 500,0000 P1,000.00 21,000.00 1,000,000.00 75,000.00 Unearned rental revenue Fernandez, capital Rent income Salaries expense Utilities expense 25,000.00 10,000.00 P1,097,000.00 P1,097,000.00 Total Additional information: a. 5% of the accounts receivable above is doubtful of collection. b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December 1, 2018. c The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage value. d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is given in bulk every 10 and 25h of the month. e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1, 2018.
Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance he prepared himself. He understands that he needs to make some adjusting entries at the end of the year. However, is unsure how to make the adjustments and he came up to you for assistance. Fernandez Housing Trial Balance December 31, 2018 Cash P503,000.00 15,000.00 20,000.00 Account receivable Office supplies Prepaid insurance Housing unit Accounts payable 24,000.00 500,0000 P1,000.00 21,000.00 1,000,000.00 75,000.00 Unearned rental revenue Fernandez, capital Rent income Salaries expense Utilities expense 25,000.00 10,000.00 P1,097,000.00 P1,097,000.00 Total Additional information: a. 5% of the accounts receivable above is doubtful of collection. b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December 1, 2018. c The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage value. d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is given in bulk every 10 and 25h of the month. e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1, 2018.
Chapter1: Financial Statements And Business Decisions
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