Journalize the adjusting entries to be made at the end of the year. 1. Eight Drops Company is a consignee and receives a 5% commission from sales of a water purifying agent to customers. The firm is able to generate sales of P280,000 for the months of November and December for which no commission has yet been received. 2. Darren Company sub-leased a portion of its space to David Company for P4,500 per month. Davíd Company occupied the said space on October1 of the current year. Darren Company did not receive any payments from David Company since October 1. 3. Dominic Company has not recorded the professional services it has rendered to a client for P25,000 which remains uncollected at year -end. 4. Codie Company rented a bus to carry their guests to and from the airport beginning December 20 from Avis Car Rental at a daily rate of P2,000. No rental payment has yet been received by Avis Car Rental. 5. Hailey Company has a 90-day note received from a customer. Interest earned on the note but not yet received at the end of the year amounted to P1,500.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Journalize the adjusting entries to be made at the end of
the year.
1. Eight Drops Company is a consignee and receives a 5%
commission from sales of a water purifying agent to
customers. The firm is able to generate sales of P280,000
for the months of November and December for which no
commission has yet been received.
2. Darren Company sub-leased a portion of its space to David
Company for P4,500 per month. David Company occupied
the said space on October1 of the current year. Darren
Company did not receive any payments from David
Company since October 1.
3. Dominic Company has not recorded the professional
services it has rendered to a client for P25,000 which
remains uncollected at year -end.
4. Codie Company rented a bus to carry their guests to and
from the airport beginning December 20 from Avis Car
Rental at a daily rate of P2,000. No rental payment has yet
been received by Avis Car Rental.
5. Hailey Company has a 90-day note received from a
customer. Interest earned on the note but not yet received at
the end of the year amounted to P1,500.
Transcribed Image Text:Journalize the adjusting entries to be made at the end of the year. 1. Eight Drops Company is a consignee and receives a 5% commission from sales of a water purifying agent to customers. The firm is able to generate sales of P280,000 for the months of November and December for which no commission has yet been received. 2. Darren Company sub-leased a portion of its space to David Company for P4,500 per month. David Company occupied the said space on October1 of the current year. Darren Company did not receive any payments from David Company since October 1. 3. Dominic Company has not recorded the professional services it has rendered to a client for P25,000 which remains uncollected at year -end. 4. Codie Company rented a bus to carry their guests to and from the airport beginning December 20 from Avis Car Rental at a daily rate of P2,000. No rental payment has yet been received by Avis Car Rental. 5. Hailey Company has a 90-day note received from a customer. Interest earned on the note but not yet received at the end of the year amounted to P1,500.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education