EXERCISE #2 Adjusting Entries (ADOPTED) For each of the following independent situations, journalize the adjusting entry needed on December 31: A. The business issued a note payable. Interest expense incurred but not yet paid amounted to Php 4,800. B. Service revenue earned but not yet billed to the clients totaled Php 12,600. C. On July 1, we received Php 120,000 advanced rent for two years, which was debited to Cash and credited to Unearned Rent Revenue. As of December 31, Php 30,000 has been earned by the company. D. On October 1, we prepaid Php 36,000 for one-year insurance policy. The amount was debited to Prepaid Insurance and credited to Cash. As of December 31, Php 9,000 has expired. E. The Supplies account currently has a balance of Php 13,000. Supplies on hand at December 31 amounts to Php 2,600. Supplies used up amounts to Php 10,400. F. Equipment was purchased last year at a cost of Php 96,000. The equipment was estimated to have a residual value of Php 6,000 and useful life of five years. Record the depreciation for the year. G. The employees' salaries for a five-day workweek amounts to Php 60,000. Salaries are paid every Friday. This year's December 31 falls on a Tuesday. Unpaid salaries amount to Php 24,000 as of December 31.
EXERCISE #2 Adjusting Entries (ADOPTED) For each of the following independent situations, journalize the adjusting entry needed on December 31: A. The business issued a note payable. Interest expense incurred but not yet paid amounted to Php 4,800. B. Service revenue earned but not yet billed to the clients totaled Php 12,600. C. On July 1, we received Php 120,000 advanced rent for two years, which was debited to Cash and credited to Unearned Rent Revenue. As of December 31, Php 30,000 has been earned by the company. D. On October 1, we prepaid Php 36,000 for one-year insurance policy. The amount was debited to Prepaid Insurance and credited to Cash. As of December 31, Php 9,000 has expired. E. The Supplies account currently has a balance of Php 13,000. Supplies on hand at December 31 amounts to Php 2,600. Supplies used up amounts to Php 10,400. F. Equipment was purchased last year at a cost of Php 96,000. The equipment was estimated to have a residual value of Php 6,000 and useful life of five years. Record the depreciation for the year. G. The employees' salaries for a five-day workweek amounts to Php 60,000. Salaries are paid every Friday. This year's December 31 falls on a Tuesday. Unpaid salaries amount to Php 24,000 as of December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Record the transactions in a journal using the account titles below
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-Prepare the unjusted
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