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In need of answer for question number 3.

In need of answer for question number 3.

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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In need of answer for question number 3.
5. Prepare the financial statements. Exercise 25 A partial adjusted trial balance of Zaylo Company at December 31, 2019, shows the following. Zaylo Company Trial Balance December 31, 2019 Debit Credit P850 Supplies Prepaid Insurance Salaries Payable Unearned Revenue 2,400 P800 750 950 Supplies Expense Insurance Expense Salaries Expense Service Revenue 600 1,800 2,000 Instructions: Answer the following questions, assuming the year starts January 1. a) The amount of P950 in Supplies Expense is the result of an adjusting entry and P500 of supplies were purchased in March. What was the balance in Supplies on January 1? b) The amount of P600 in Insurance Expense came from the December 31 adjusting entry. The original insurance premium was for one year. What was the total premium and when was the policy purchased? c) P3,500 of salaries was paid in2019. What was the balance in Salaries Payable at December 31, 2018? d) P1,600 was received in 2019 for services performed in December. What was the balance in Unearned Revenue on December 31, 2018? CLOSING ENTRIES After preparing the financial statements, the revenue and expernse accounts would have served its purpose for the current accounting period. These accounts chould
Transcribed Image Text:5. Prepare the financial statements. Exercise 25 A partial adjusted trial balance of Zaylo Company at December 31, 2019, shows the following. Zaylo Company Trial Balance December 31, 2019 Debit Credit P850 Supplies Prepaid Insurance Salaries Payable Unearned Revenue 2,400 P800 750 950 Supplies Expense Insurance Expense Salaries Expense Service Revenue 600 1,800 2,000 Instructions: Answer the following questions, assuming the year starts January 1. a) The amount of P950 in Supplies Expense is the result of an adjusting entry and P500 of supplies were purchased in March. What was the balance in Supplies on January 1? b) The amount of P600 in Insurance Expense came from the December 31 adjusting entry. The original insurance premium was for one year. What was the total premium and when was the policy purchased? c) P3,500 of salaries was paid in2019. What was the balance in Salaries Payable at December 31, 2018? d) P1,600 was received in 2019 for services performed in December. What was the balance in Unearned Revenue on December 31, 2018? CLOSING ENTRIES After preparing the financial statements, the revenue and expernse accounts would have served its purpose for the current accounting period. These accounts chould
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