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Data for adjustments: |1. Inventory, December 31 2. Increase the allowance for bad debts to 5% of accounts receivable. 3. Depreciation of furniture and fixtures, 10% a year. |4. Store supplies used, P400. 5. The Notes Receivable represents a 60-day, 12% note dated December 11, 2006 for P 60,000 which no interest has been collected. 6. Accrued salaries, P 10,000. 7. 1/3 of the Interest Income is earned at the end of the period.

Data for adjustments: |1. Inventory, December 31 2. Increase the allowance for bad debts to 5% of accounts receivable. 3. Depreciation of furniture and fixtures, 10% a year. |4. Store supplies used, P400. 5. The Notes Receivable represents a 60-day, 12% note dated December 11, 2006 for P 60,000 which no interest has been collected. 6. Accrued salaries, P 10,000. 7. 1/3 of the Interest Income is earned at the end of the period.

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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1. MERCHANDISE INVENTORY ENDING               60000
    INCOME SUMMARY                                                      60000

2. BAD DEBTS EXPENSE                                        100
    ALLOWANCE FOR BAD DEBTS                                       100

3. DEPRECIATION EXPENSES                                6000
    ACCUMULATED DEPRECIATION                                    6000

4. STORE SUPPLIES EXPENSE                                400
    STORE SUPPLIES INVENTORY                                       400

5. INTEREST RECEIVABLE                                       252
    INTEREST INCOME                                                        252

6. SALARIES EXPENSES                                         10000
    SALARIES PAYABLE                                                        10000

7. CASH                                                                  84
    INTEREST RECEIVABLE                                                   84

 

PLEASE CHECK IF MY ADJUSTING ENTRIES IS CORRECT

Data for adjustments: |1. Inventory, December 31 2. Increase the allowance for bad debts to 5% of accounts receivable. 3. Depreciation of furniture and fixtures, 10% a year. |4. Store supplies used, P400. 5. The Notes Receivable represents a 60-day, 12% note dated December 11, 2006 for P 60,000 which no interest has been collected. 6. Accrued salaries, P 10,000. 7. 1/3 of the Interest Income is earned at the end of the period.
Transcribed Image Text:Data for adjustments: |1. Inventory, December 31 2. Increase the allowance for bad debts to 5% of accounts receivable. 3. Depreciation of furniture and fixtures, 10% a year. |4. Store supplies used, P400. 5. The Notes Receivable represents a 60-day, 12% note dated December 11, 2006 for P 60,000 which no interest has been collected. 6. Accrued salaries, P 10,000. 7. 1/3 of the Interest Income is earned at the end of the period.
Problem- The following accounts were taken from the ledger of Ways Trading 2s of December 31, 2012; Account Titles Debit Credit Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Inventory, January 1 Store Supplies Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Notes Payable Castro, Capital Castro, Drawing Sales Sales Discounts Sales Returns and Allowances Purchases Freight In 30,000 12,000 500 6,000 40,000 600 60,000 3,000 12,000 10,000 74,900 2,000 300,000 1,000 2,000 200,000 5,000 2,000 4,000 Purchase Discounts Purchase Returns and Allowances Advertising Expense Salaries Expense Utilities Expense Interest Income Interest Expense Totals 4,000 38,000 6,000 600 400 407,000 407,000
Transcribed Image Text:Problem- The following accounts were taken from the ledger of Ways Trading 2s of December 31, 2012; Account Titles Debit Credit Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Inventory, January 1 Store Supplies Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Notes Payable Castro, Capital Castro, Drawing Sales Sales Discounts Sales Returns and Allowances Purchases Freight In 30,000 12,000 500 6,000 40,000 600 60,000 3,000 12,000 10,000 74,900 2,000 300,000 1,000 2,000 200,000 5,000 2,000 4,000 Purchase Discounts Purchase Returns and Allowances Advertising Expense Salaries Expense Utilities Expense Interest Income Interest Expense Totals 4,000 38,000 6,000 600 400 407,000 407,000
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