Catalan Cove Co. has the following balances in selected accounts on December 31, 2020: Accounts Receivable - ₱ 8,000 Accumulated Depreciation – Equipment - ? Equipment - ₱ 36,000 Interest Payable - ₱ 4,666 Notes Payable - ₱ 12,000 Prepaid Insurance - ₱ 8,460 Salaries and Wages Payable - ? Supplies - ₱ 6,800 Unearned Service Revenue - ₱ 48,000 All the accounts have normal balances. The information below has been gathered at December 31, 2020: On November 1, 2020, Catalan Cove received P48,000 as an advance payment from a customer for services to be rendered evenly over 12 months. Catalan Cove performed digitization services for a client since the start of the last quarter of 2020. The client will be billed P4,000 per month. Physical count of supplies at the end of the year revealed that P650 of supplies are left. Equipment was purchased on January 1, 2020. Estimated useful life of the equipment is 5 years, and at the end of the useful life, the said equipment may be sold for P1,000. Salaries amounting to P18,000 was not yet recorded in the company’s books. A one-time performance bonus to all employees totaling P60,000 was approved by the management, which to be paid on January 15 of the succeeding year. On July 1, 2020, Catalan Cove signed a 7.5%, 2-year promissory note with Chase Bank amounting to P12,000. Catalan Cove paid P8,460 for 18 months of insurance coverage on June 1, 2020. REQUIRED (show supporting calculations): 1. Prepare annual adjusting entries for the items described above. (Round all amounts to the nearest peso, ₱)
Catalan Cove Co. has the following balances in selected accounts on December 31, 2020:
Equipment - ₱ 36,000
Interest Payable - ₱ 4,666
Notes Payable - ₱ 12,000
Prepaid Insurance - ₱ 8,460
Salaries and Wages Payable - ?
Supplies - ₱ 6,800
Unearned Service Revenue - ₱ 48,000
All the accounts have normal balances. The information below has been gathered at December 31, 2020:
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On November 1, 2020, Catalan Cove received P48,000 as an advance payment from a customer for services to be rendered evenly over 12 months.
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Catalan Cove performed digitization services for a client since the start of the last quarter of 2020. The client will be billed P4,000 per month.
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Physical count of supplies at the end of the year revealed that P650 of supplies are left.
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Equipment was purchased on January 1, 2020. Estimated useful life of the equipment is 5 years, and at the end of the useful life, the said equipment may be sold for P1,000.
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Salaries amounting to P18,000 was not yet recorded in the company’s books. A one-time performance bonus to all employees totaling P60,000 was approved by the management, which to be paid on January 15 of the succeeding year.
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On July 1, 2020, Catalan Cove signed a 7.5%, 2-year promissory note with Chase Bank amounting to P12,000.
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Catalan Cove paid P8,460 for 18 months of insurance coverage on June 1, 2020.
REQUIRED (show supporting calculations):
1. Prepare annual
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