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D. Failure to recognize the P20,000 earned portion of the repairs revenue initially recorded as a real account when the cash was received. E. Failure to recognize P5,000 unused office supplies for supplies bought last June 1, 2015 which was taken up in. the books using a nominal account. Exercise 8-12: Adjusting Entries - II. Provide the adjusting journal entries at year-end 2015 for the following indepen- dent situations using the perspective of the business (assume- calendar year). 1. On March 1, 2015, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an inte restbearing note for the P285,000, net of 2% processing fee. The bank loan is payable after three years with an annual interest of 15%. 2. Guitar Café received the following bills covering the mont of December 2015 on January 3, 2016: advertising c P19,800, repairs of P2,000, and utilities of P4,860. 3. Harp Beauty Shop pays salaries for the first half of the mon every 25th day of the current month and the second ha every 10th day of the succeeding month. The salaries f the second half of December 2015 amounted to P35,00- 4. Drumstick Chickens rendered catering services last Decemt 15, 2015. The contract price amounted to P75,000. Sin no payment had been received yet, Drumstick did not mc any journal entry last December 15, 2015. 5. On May 1, 2015, Piano Services received a P450,00 9% note for selling equipment not being used anymore the business. The note will be payable in two years.

D. Failure to recognize the P20,000 earned portion of the repairs revenue initially recorded as a real account when the cash was received. E. Failure to recognize P5,000 unused office supplies for supplies bought last June 1, 2015 which was taken up in. the books using a nominal account. Exercise 8-12: Adjusting Entries - II. Provide the adjusting journal entries at year-end 2015 for the following indepen- dent situations using the perspective of the business (assume- calendar year). 1. On March 1, 2015, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an inte restbearing note for the P285,000, net of 2% processing fee. The bank loan is payable after three years with an annual interest of 15%. 2. Guitar Café received the following bills covering the mont of December 2015 on January 3, 2016: advertising c P19,800, repairs of P2,000, and utilities of P4,860. 3. Harp Beauty Shop pays salaries for the first half of the mon every 25th day of the current month and the second ha every 10th day of the succeeding month. The salaries f the second half of December 2015 amounted to P35,00- 4. Drumstick Chickens rendered catering services last Decemt 15, 2015. The contract price amounted to P75,000. Sin no payment had been received yet, Drumstick did not mc any journal entry last December 15, 2015. 5. On May 1, 2015, Piano Services received a P450,00 9% note for selling equipment not being used anymore the business. The note will be payable in two years.

FINANCIAL ACCOUNTING
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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of a Service Business 129 D. Failure to recognize the P20,000 earned portion of the repairs revenue initially recorded as a real account when the cash was received. E. Failure to recognize P5,000 unused office supplies for supplies bought last June 1, 2015 which was taken up in. the books using a nomindl account. Exercise 8-12: Adjusting Entries - II. Provide the adjusting journal entries at year-end 2015 for the following indepen- dent situations using the perspective of the business (assume calendar year). 1. On March 1, 2015, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an inte restbearing note for the P285,000, net of 2% fee. The bank loan is payable after three years with an processing annual interest of 15%. 2. Guitar Café received the following bills covering the month of December 2015 on January 3, 2016: advertising of P19,800, repairs of P 2,000, and utilities of P4,860. 3. Harp Beauty Shop pays salaries for the first half of the month every 25th day of the current month and the second half every 10th day of the succeeding month. The salaries for the second half of December 2015 amounted to P35,000. 4. Drumstick Chickens rendered catering services last December 15, 2015. The contract price amounted to P75,000. Since no payment had been received yet, Drumstick did not make any journal entry last December 15, 2015. 5. On May 1, 2015, Piano Services received a P450,000, 9% note for selling equipment not being used anymore in the business. The note will be payable in two years. in B13: Adiusting Entries- II. Provide the adjusting
Transcribed Image Text:of a Service Business 129 D. Failure to recognize the P20,000 earned portion of the repairs revenue initially recorded as a real account when the cash was received. E. Failure to recognize P5,000 unused office supplies for supplies bought last June 1, 2015 which was taken up in. the books using a nomindl account. Exercise 8-12: Adjusting Entries - II. Provide the adjusting journal entries at year-end 2015 for the following indepen- dent situations using the perspective of the business (assume calendar year). 1. On March 1, 2015, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an inte restbearing note for the P285,000, net of 2% fee. The bank loan is payable after three years with an processing annual interest of 15%. 2. Guitar Café received the following bills covering the month of December 2015 on January 3, 2016: advertising of P19,800, repairs of P 2,000, and utilities of P4,860. 3. Harp Beauty Shop pays salaries for the first half of the month every 25th day of the current month and the second half every 10th day of the succeeding month. The salaries for the second half of December 2015 amounted to P35,000. 4. Drumstick Chickens rendered catering services last December 15, 2015. The contract price amounted to P75,000. Since no payment had been received yet, Drumstick did not make any journal entry last December 15, 2015. 5. On May 1, 2015, Piano Services received a P450,000, 9% note for selling equipment not being used anymore in the business. The note will be payable in two years. in B13: Adiusting Entries- II. Provide the adjusting
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