Flora Company presented the following information pertaining to accounts to be adjusted. 1. On July 30, Flora Co. paid 6 months rent, P48,000.This was debited to Prepaid Rent. 2. Office Supplies account shows a balance of P13.000 on Jan. 1, 2014. A count of office supplies on Dec. 31 showed supplies balance of P4,200. 3. On November 1, Flora Co. received P54,000 for services to be rendered for the next 3 months starting November 1. This was credited to Unearned Service Income." 4. Flora Co, acquired office equipment on January 1, 2014 for P60,000. The equipment is expected to be used for 6 years after which it is expected to be worthless. 5. Estimate doubtful accounts for the year is P1,500. 6. On December 31, received utility bill for the month in the amount of P 5,600. This will be paid on January 3, 2015. Required: Give the Adjusting Journal Entries on December 31, 2014. Date Explanation PR Debit Credit 2014 1 To record expired rent To record office supplies used 3. To record service earned To record depreciation of equipment Cost 60,000 Less : Salvage Value Depreciable cost Divided by : Estimated Useful Life Annual Depreciation 6. years 5 To record provision for bad debts 6. To record unpaid accrued utilities

Flora Company presented the following information pertaining to accounts to be adjusted. 1. On July 30, Flora Co. paid 6 months rent, P48,000.This was debited to Prepaid Rent. 2. Office Supplies account shows a balance of P13.000 on Jan. 1, 2014. A count of office supplies on Dec. 31 showed supplies balance of P4,200. 3. On November 1, Flora Co. received P54,000 for services to be rendered for the next 3 months starting November 1. This was credited to Unearned Service Income." 4. Flora Co, acquired office equipment on January 1, 2014 for P60,000. The equipment is expected to be used for 6 years after which it is expected to be worthless. 5. Estimate doubtful accounts for the year is P1,500. 6. On December 31, received utility bill for the month in the amount of P 5,600. This will be paid on January 3, 2015. Required: Give the Adjusting Journal Entries on December 31, 2014. Date Explanation PR Debit Credit 2014 1 To record expired rent To record office supplies used 3. To record service earned To record depreciation of equipment Cost 60,000 Less : Salvage Value Depreciable cost Divided by : Estimated Useful Life Annual Depreciation 6. years 5 To record provision for bad debts 6. To record unpaid accrued utilities

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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