Balikatan Store is completing the accounting process for the year just ended December 31, 200B. The transactions in 200B have been journalized and posted. The following data with respect to adjusting entries were available: 1. Office supplies inventory at January 1, 200B, was P2,500. Office supplies purchased and debited to office supplies inventory during the year amounted to P6,000. The year-end inventory showed P3,000 of supplies on hand. 2. Wages earned on December 200B, unpaid and unrecorded on December 31, 200B, amounted to P27,000. The last payroll was December 28; next payroll will be January 6, 200C. 3. Three - fourths of the basement of the store is rented for P11,000 per month to another merchant, Kano Enterprises. Kano sells comparable, but not competitive, merchandise. On November 1, 200B, the store collected six months' rent in advance from Kano in the amount of P66,000, which was credited in full to rent revenue when collected. 4. The remaining basement space is rented to Gloria Specialty Shop for P5,200 per month, payable monthly. On December 31, 200B, the rent for November and December was neither collected nor recorded. Collection is expected on January 10, 200C. 5. Delivery equipment that cost P300,000 was being used by the store. The equipment was estimated to have a useful life of four years and a residual value of P6,000 at the end of four years. Assume depreciation for a full year for 200B. The asset will be depreciated evenly over its useful life. 6. On July 1, 200B, a two-year insurance premium amounting to P30,000 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1, 200в. 7. Balikatan operates a repair shop to meet its own needs. Also, the shop does repairs for Kano. At the end of December 31, 200B, Kano did not pay for repairs completed amounting P7,500. This amount has not been recorded as Repairs Shop Revenue. Collection is expected on January 20oc.
Balikatan Store is completing the accounting process for the year just ended December 31, 200B. The transactions in 200B have been journalized and posted. The following data with respect to adjusting entries were available: 1. Office supplies inventory at January 1, 200B, was P2,500. Office supplies purchased and debited to office supplies inventory during the year amounted to P6,000. The year-end inventory showed P3,000 of supplies on hand. 2. Wages earned on December 200B, unpaid and unrecorded on December 31, 200B, amounted to P27,000. The last payroll was December 28; next payroll will be January 6, 200C. 3. Three - fourths of the basement of the store is rented for P11,000 per month to another merchant, Kano Enterprises. Kano sells comparable, but not competitive, merchandise. On November 1, 200B, the store collected six months' rent in advance from Kano in the amount of P66,000, which was credited in full to rent revenue when collected. 4. The remaining basement space is rented to Gloria Specialty Shop for P5,200 per month, payable monthly. On December 31, 200B, the rent for November and December was neither collected nor recorded. Collection is expected on January 10, 200C. 5. Delivery equipment that cost P300,000 was being used by the store. The equipment was estimated to have a useful life of four years and a residual value of P6,000 at the end of four years. Assume depreciation for a full year for 200B. The asset will be depreciated evenly over its useful life. 6. On July 1, 200B, a two-year insurance premium amounting to P30,000 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1, 200в. 7. Balikatan operates a repair shop to meet its own needs. Also, the shop does repairs for Kano. At the end of December 31, 200B, Kano did not pay for repairs completed amounting P7,500. This amount has not been recorded as Repairs Shop Revenue. Collection is expected on January 20oc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I really need some help please, I am really depressed in accounting.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education