I. II. PREPARE ALL THE ADJUSTING ENTRIES SHOWING THE DETAILED COMPUTATIONS. PREPARE THE WORKING PAPER OF VICTORY COMPANY. Note: Please keep in mind the dates of each numbers. At the end of the calendar year 2021, December 31. VICTORY COMPANY accounting in charge has to make some adjustments to its Unadjusted trial balance in order to reflect the correct accounts and figures for the current year's financial statements. The following are the transactions that needs to be recorded as adjusting entries. 1 The vehicle the company bought in February 1, 2021 needs to be depreciated. It has an estimated Cash Accounts Receivable Notes Receivable Prepaid Advertising Furnitures and Fixtures Vehicle salvage value of 25% of the cost and a usefull of 4 years. PUT YOUR DETAILED COMPUTATION HERE 2 The office tables and chairs amounting to P100,000.00 has a useful life of 3 years with a salvage value of P20,000.00. These were bought January 15, 2021. (Keep in mind the date January 15 count starting 16 to Dec 31 how many months and days) Accounts Payable PUT YOUR DETAILED COMPUTATION HERE Loans Payable POT YOUR DETAILED COMPOTATION 3 The company estimated a 10% doubtful accounts of all of its receivables. PUT YOUR DETAILED COMPUTATION HERE PUT YOUR DETAILED COMPUTATION HERE 4 The advance payment to Bros Advertising was made last June 10, 2021 covering 12 months. (keep in mind the date) PUT YOUR DETAILED COMPUTATION HERE 5 The company rented a display room in a mall and paid P15,000.00 per month straight contract covering July 1, 2021 to June 30, 2022. PUT YOUR DETAILED COMPUTATION HERE 6 The company received P220,000.00 on November 10, 2021 advance payment from its client for goods purchased and yet to be delivered to the client. PUT YOUR DETAILED COMPUTATION HERE 7 The company has to recognize the salaries of its employees for the period December 16, 2021- December 31, 2021 amounting to P75,000.00 PUT YOUR DETAILED COMPUTATION HERE 8 The company has unpaid utility bills amounting to P23,000.00. PUT YOUR DETAILED COMPUTATION HERE w 9 The president of the company decided to invest unused cash of the company in treasury bills. the presid The invested amount was P130,000.00 made on December 5, 2021 with an interest of 5% and will Accounts mature on February 4, 2022. (keep in mind the date) mos PUT YOUR DETAILED COMPUTATION HERE 10 The accountant found out that the were plane tickets of the presidents not yet paid amounting to P30,000.00 PUT YOUR DETAILED COMPUTATION HERE (ONLY PUT IN THE ADJUSTING ENTRY THE ADJUSTMENT UNTIL DECEMBER 31,2021) Legaspi, Capital Legaspi, Withdrawal Service revenue Transportation expense Salaries exp TOTAL VICTORY COMPANY Unadjusted Trial Balance. Deember 31, 2021 DR 500,000.00 750,000.00 50,000.00 100,000.00 200,000.00 1,000,000.00 0 V 0 2 0 120,000.00 0 75,000.00 700,000.00 3,495,000.00 CR 0 0 0 0 0 295,000.00 200,000.00 1,000,000.00 0 2,000,000.00 0 0 3,495,000.00
I. II. PREPARE ALL THE ADJUSTING ENTRIES SHOWING THE DETAILED COMPUTATIONS. PREPARE THE WORKING PAPER OF VICTORY COMPANY. Note: Please keep in mind the dates of each numbers. At the end of the calendar year 2021, December 31. VICTORY COMPANY accounting in charge has to make some adjustments to its Unadjusted trial balance in order to reflect the correct accounts and figures for the current year's financial statements. The following are the transactions that needs to be recorded as adjusting entries. 1 The vehicle the company bought in February 1, 2021 needs to be depreciated. It has an estimated Cash Accounts Receivable Notes Receivable Prepaid Advertising Furnitures and Fixtures Vehicle salvage value of 25% of the cost and a usefull of 4 years. PUT YOUR DETAILED COMPUTATION HERE 2 The office tables and chairs amounting to P100,000.00 has a useful life of 3 years with a salvage value of P20,000.00. These were bought January 15, 2021. (Keep in mind the date January 15 count starting 16 to Dec 31 how many months and days) Accounts Payable PUT YOUR DETAILED COMPUTATION HERE Loans Payable POT YOUR DETAILED COMPOTATION 3 The company estimated a 10% doubtful accounts of all of its receivables. PUT YOUR DETAILED COMPUTATION HERE PUT YOUR DETAILED COMPUTATION HERE 4 The advance payment to Bros Advertising was made last June 10, 2021 covering 12 months. (keep in mind the date) PUT YOUR DETAILED COMPUTATION HERE 5 The company rented a display room in a mall and paid P15,000.00 per month straight contract covering July 1, 2021 to June 30, 2022. PUT YOUR DETAILED COMPUTATION HERE 6 The company received P220,000.00 on November 10, 2021 advance payment from its client for goods purchased and yet to be delivered to the client. PUT YOUR DETAILED COMPUTATION HERE 7 The company has to recognize the salaries of its employees for the period December 16, 2021- December 31, 2021 amounting to P75,000.00 PUT YOUR DETAILED COMPUTATION HERE 8 The company has unpaid utility bills amounting to P23,000.00. PUT YOUR DETAILED COMPUTATION HERE w 9 The president of the company decided to invest unused cash of the company in treasury bills. the presid The invested amount was P130,000.00 made on December 5, 2021 with an interest of 5% and will Accounts mature on February 4, 2022. (keep in mind the date) mos PUT YOUR DETAILED COMPUTATION HERE 10 The accountant found out that the were plane tickets of the presidents not yet paid amounting to P30,000.00 PUT YOUR DETAILED COMPUTATION HERE (ONLY PUT IN THE ADJUSTING ENTRY THE ADJUSTMENT UNTIL DECEMBER 31,2021) Legaspi, Capital Legaspi, Withdrawal Service revenue Transportation expense Salaries exp TOTAL VICTORY COMPANY Unadjusted Trial Balance. Deember 31, 2021 DR 500,000.00 750,000.00 50,000.00 100,000.00 200,000.00 1,000,000.00 0 V 0 2 0 120,000.00 0 75,000.00 700,000.00 3,495,000.00 CR 0 0 0 0 0 295,000.00 200,000.00 1,000,000.00 0 2,000,000.00 0 0 3,495,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
Transcribed Image Text:1.
II.
PREPARE ALL THE ADJUSTING ENTRIES SHOWING THE DETAILED COMPUTATIONS.
PREPARE THE WORKING PAPER OF VICTORY COMPANY.
Note: Please keep in mind the dates of each numbers.
At the end of the calendar year 2021, December 31. VICTORY COMPANY accounting in charge has
to make some adjustments to its Unadjusted trial balance in order to reflect
the correct accounts and figures for the current year's financial statements.
The following are the transactions that needs to be recorded as adjusting entries.
1 The vehicle the company bought in February 1, 2021 needs to be depreciated. It has an estimated
salvage value of 25% of the cost and a usefull of 4 years.
Cash
Accounts Receivable
Notes Receivable
Prepaid Advertising
Furnitures and Fixtures
Vehicle
PUT YOUR DETAILED COMPUTATION HERE
2 The office tables and chairs amounting to P100,000.00 has a useful life of 3 years with a salvage value
of P20,000.00. These were bought January 15, 2021. (Keep in mind the date January 15 count starting 16 to Dec 31 how many months and days) Accounts Payable
PUT YOUR DETAILED COMPUTATION HERE
3 The company estimated a 10% doubtful accounts of all of its receivables.
PUT YOUR DETAILED COMPUTATION HERE
4 The advance payment to Bros Advertising was made last June 10, 2021 covering 12 months. (keep in mind the date)
PUT YOUR DETAILED COMPUTATION HERE
5 The company rented a display room in a mail and paid P15,000.00 per month straight contract
covering July 1, 2021 to June 30, 2022.
PUT YOUR DETAILED COMPUTATION HERE
6 The company received P220,000.00 on November 10, 2021 advance payment from its client for
goods purchased and yet to be delivered to the client.
PUT YOUR DETAILED COMPUTATION HERE
7 The company has to recognize the salaries of its employees for the period December 16, 2021-
December 31, 2021 amounting to P75,000.00
PUT YOUR DETAILED COMPUTATION HERE
Accounts
8 The company has unpaid utility bills amounting to P23,000.00.
PUT YOUR DETAILED COMPUTATION HERE
9 The president of the company decided to invest unused cash of the company in treasury bills.
The invested amount was P130,000.00 made on December 5, 2021 with an interest of 5% and will
mature on February 4, 2022. (keep in mind the date)
PUT YOUR DETAILED COMPUTATION HERE
10 The accountant found out that the were plane tickets of the presidents not yet paid amounting to
P30,000.00
PUT YOUR DETAILED COMPUTATION HERE
(ONLY PUT IN THE ADJUSTING ENTRY THE ADJUSTMENT UNTIL DECEMBER 31,2021)
Loans Payable
Legaspi, Capital
Legaspi, Withdrawal.
Service revenue
Transportation expense
Salaries exp
TOTAL
VICTORY COMPANY
Unadjusted Trial Balance
Deember 31, 2021
DR
500,000.00
750,000.00
50,000.00
100,000.00
200,000.00
1,000,000.00
0
0
0
120,000.00
0
75,000.00
700,000.00
3,495,000.00
CR
0
0
0
0
0
295,000.00
200,000.00
1,000,000.00
0
2,000,000.00
0
0
3,495,000.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education