Instruction: Using the expense method this time, prepare the original entry of the foregoing transactions ar the necessary adjusting entry at the end of the accounting period. Dec. 31, 2019. Problem The trial balance of the Mabilis Repair Shop appears below at the end of its calendar period: MABILIS REPAIR SHOP Trial Balance December 31, 2019 Cash on Hand Accounts Receivable Estimated Uncollectible Accounts Notes Receivable Shop Equipment Accumulated Depreciation-Shop Equipment Furniture and Fixture Accumulated Depreciation-Fumiture and Fixture Accounts Payable Notes Payable Leynes, Capital Leynes, Drawing Service Income Salaries Expense Rent Expense Supplies Expense Taxes and Licenses Light and Water Expense 10,000 25,000 P 750 7,000 30,000 2,000 8,000 5,000 11,000 12,000 44,750 1,000 30,000 8,000 8,000 4,000 1,500 3,000 105,500 P 105,500 Additional information 1. Unpaid taxes P600. 2. Accrued salaries P3,000. 3. Accrued interest on notes payable P200. 4. Unpaid light and water, P500. 5. Supplies on hand, P1,000 6. Bad debt expense is estimated to be 5% of Accounts Receivable. 7. Fixed assets have estimated useful life of 10 years without scrap value. 8. Accrued interest on notes receivable, P120. Required: Prepare the necessary adjusting entries.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Instruction: Using the expense method this time, prepare the original entry of the foregoing transactions and
the necessary adjusting entry at the end of the accounting period. Dec. 31, 2019.
Problem
The trial balance of the Mabilis Repair Shop appears below at the end of its calendar period:
MABILIS REPAIR SHOP
Trial Balance
December 31, 2019
Cash on Hand
10,000
25,000
P
Accounts Receivable
Estimated Uncollectible Accounts
750
Notes Receivable
7,000
30,000
Shop Equipment
Accumulated Depreciation-Shop Equipment
2,000
Furniture and Fixture
8,000
Accumulated Depreciation-Fumiture and Fixture
Accounts Payable
Notes Payable
Leynes, Capital
Leynes, Drawing
Service Income
5,000
11,000
12,000
44,750
1,000
30,000
Salaries Expense
Rent Expense
Supplies Expense
Taxes and Licenses
8,000
8,000
4,000
1,500
3,000
105,500
Light and Water Expense
P
105,500
Additional information
1. Unpaid taxes P600.
2. Accrued salaries P3,000.
3. Accrued interest on notes payable P200.
4. Unpaid light and water, P500.
5. Supplies on hand, P1,000
6. Bad debt expense is estimated to be 5% of Accounts Receivable.
7. Fixed assets have estimated useful life of 10 years without scrap value.
8. Accrued interest on notes receivable, P120.
Required: Prepare the necessary adjusting entries.
Transcribed Image Text:Instruction: Using the expense method this time, prepare the original entry of the foregoing transactions and the necessary adjusting entry at the end of the accounting period. Dec. 31, 2019. Problem The trial balance of the Mabilis Repair Shop appears below at the end of its calendar period: MABILIS REPAIR SHOP Trial Balance December 31, 2019 Cash on Hand 10,000 25,000 P Accounts Receivable Estimated Uncollectible Accounts 750 Notes Receivable 7,000 30,000 Shop Equipment Accumulated Depreciation-Shop Equipment 2,000 Furniture and Fixture 8,000 Accumulated Depreciation-Fumiture and Fixture Accounts Payable Notes Payable Leynes, Capital Leynes, Drawing Service Income 5,000 11,000 12,000 44,750 1,000 30,000 Salaries Expense Rent Expense Supplies Expense Taxes and Licenses 8,000 8,000 4,000 1,500 3,000 105,500 Light and Water Expense P 105,500 Additional information 1. Unpaid taxes P600. 2. Accrued salaries P3,000. 3. Accrued interest on notes payable P200. 4. Unpaid light and water, P500. 5. Supplies on hand, P1,000 6. Bad debt expense is estimated to be 5% of Accounts Receivable. 7. Fixed assets have estimated useful life of 10 years without scrap value. 8. Accrued interest on notes receivable, P120. Required: Prepare the necessary adjusting entries.
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