Master Architect designs houses for various clients. Its unadjusted trial balance as of December 31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two accounts collected in advance: November 10 Monson account, P200,000 and December 15 Samson account, P150,000. It takes 50 days for a design to be finished and delivered. Required: a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees. b. Make postings to the general ledger accounts appearing below. Unearned Professional Fees 404 Date Explanation Ref Debit Credit Balance 2018 Nov. 10 Dec. 15 Dec. 31 Collection from Monson Collection from Samson ? GJ 11 GJ 12 AE ? P200,000 150,000 P200,000 350,000 ?Professional Fees 702 Date Explanation Ref Debit 2018 Credit Total services rendered. D ec. 31 GJ 12 P 1,0 00,000 Balance P 1,0 00,000 ? AE 2 ? 5. Leonard Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurance for one year P12,000. The building has an estimated useful life of ten years and a P200,000 residual value. Required: a. Give the entry for the purchase of the building. b. Give the entry to record the payment for prepaid insurance. c. Give the entry to adjust for depreciation on December 31, 2017. d. Give the entry to adjust for expired insurance on December 31, 2017 ? Master Architect designs houses for various clients. Its unadjusted trial balance as of December31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two4.accounts collected in advance: November 10 Monson account, P200,000 and December 15Samson account, P150,000. It takes 50 days for a design to be finished and delivered.Required:a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees.b. Make postings to the general ledger accounts appearing below.Unearned Professional Fees404DateExplanationRefDebitCreditBalance2018GJ 11GJ 12Nov. 10Collection from MonsonP200,000P200,000150,000Dec. 15Collection from Samson350,000Dec. 31?AE??Professional Fees702DateExplanationRefDebitCreditBalance2018Total services rendered.GJ 12P1,000,000 P1,000,000Dec. 31?AE 25. Leonard Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurancefor one year P12,000. The building has an estimated useful life of ten years and a P200,000residual value.Required:a. Give the entry for the purchase of the building.b. Give the entry to record the payment for prepaid insurance.c. Give the entry to adjust for depreciation on December 31, 2017.d. Give the entry to adjust for expired insurance on December 31, 2017

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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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Master Architect designs houses for various clients. Its unadjusted trial balance as of December 31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two accounts collected in advance: November 10 Monson account, P200,000 and December 15 Samson account, P150,000. It takes 50 days for a design to be finished and delivered. Required: a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees. b. Make postings to the general ledger accounts appearing below. Unearned Professional Fees 404 Date Explanation Ref Debit Credit Balance 2018 Nov. 10 Dec. 15 Dec. 31 Collection from Monson Collection from Samson ? GJ 11 GJ 12 AE ? P200,000 150,000 P200,000 350,000 ?Professional Fees 702 Date Explanation Ref Debit 2018 Credit Total services rendered. D ec. 31 GJ 12 P 1,0 00,000 Balance P 1,0 00,000 ? AE 2 ? 5. Leonard Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurance for one year P12,000. The building has an estimated useful life of ten years and a P200,000 residual value. Required: a. Give the entry for the purchase of the building. b. Give the entry to record the payment for prepaid insurance. c. Give the entry to adjust for depreciation on December 31, 2017. d. Give the entry to adjust for expired insurance on December 31, 2017 ?

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