NESTOR MARTEL SHOPPE Unaqusted Thai Balance December 31, 20CY ACCOUNT TITLE DEBIT CREDIT Cash 78,400 Merchandise Inventory 10,000 Accounts Recavable 8,900 Prepad Insurance 6,000 Office Supplies 2,500 Fumiture and Equipment 75,000 Accounts Payable Loan Payable Nestor Martel. Capital Nestor Martel, Drawing 40,000 60,000 60,000 P. 12,000 Sales 44,400 Salary Expense 5,500 Advertising Expense 3,600 Ut ities Expense 1,500 Miscellaneous Expense 1,000 P. 104,400 104,400 Total Additional informati on: 1. The one-year P 6,000 insurance paid was effective December 1 2. Office rental of P 4,000 for the month of December was still unpaid. 3. Interest of 18% per annum on P 60,000 bark loan granted on December 11 has accrued. 4. Advertising placement of P 3,600 for three months was effective on Dec. 1 5. Fees of P 5,000 collected in advance on December 30 will be for services to to be rendered next year. 6. Office suppli es unused at the end of the month amounted to P 1,600. 7. Furniture and equipment are estirmated to have a useful life of ten years, It was decided to provide one-month depreciation for December equired: a. Prepare the necessary adjusting entries. b. Prepare a worksheet indicating the unadjusted trial balance, adjustments and the adjusted trial balance
NESTOR MARTEL SHOPPE Unaqusted Thai Balance December 31, 20CY ACCOUNT TITLE DEBIT CREDIT Cash 78,400 Merchandise Inventory 10,000 Accounts Recavable 8,900 Prepad Insurance 6,000 Office Supplies 2,500 Fumiture and Equipment 75,000 Accounts Payable Loan Payable Nestor Martel. Capital Nestor Martel, Drawing 40,000 60,000 60,000 P. 12,000 Sales 44,400 Salary Expense 5,500 Advertising Expense 3,600 Ut ities Expense 1,500 Miscellaneous Expense 1,000 P. 104,400 104,400 Total Additional informati on: 1. The one-year P 6,000 insurance paid was effective December 1 2. Office rental of P 4,000 for the month of December was still unpaid. 3. Interest of 18% per annum on P 60,000 bark loan granted on December 11 has accrued. 4. Advertising placement of P 3,600 for three months was effective on Dec. 1 5. Fees of P 5,000 collected in advance on December 30 will be for services to to be rendered next year. 6. Office suppli es unused at the end of the month amounted to P 1,600. 7. Furniture and equipment are estirmated to have a useful life of ten years, It was decided to provide one-month depreciation for December equired: a. Prepare the necessary adjusting entries. b. Prepare a worksheet indicating the unadjusted trial balance, adjustments and the adjusted trial balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:C Preparation of Adjusting Ertries
NESTOR MARTEL SHOPPE
Unaqusted Thal Balance December 31, 20CY
ACCOUNT TITLE
DEBIT
CREDIT
Cash
78,400
Merchandise Inventory
10,000
Accounts Recavable
8,900
Prepad Insurance
6,000
Office Supplies
2,500
Furniture and Equipment
75,000
Acccunts Payable
Loan Payable
40,000
60,000
P.
Nestor Martel. Capital
60,000
Nestor Martel, Drawing
12.000
Sales
44,400
Salary Expense
5,500
Advartising Expense
3,600
Uti ities Expense
1,500
Miscellaneous Expense
1,000
P.
104,400
104,400
Total
Additional informati on
1. The one-year P 6,000 insurance paid was effective December 1.
2. Office rental of P 4,000 for the month of December was still unpaid.
3. Interest of 18% per annum on P 60,000 bark loan granted on December 11 has
accrued.
4. Advertising placement of P 3,600 for three months was effective on Dec. 1
5. Fees of P 5,000 collected in advance on December 30 will be for services to to be
rendered next year.
6. Office suppli es unused at the end of the month amounted to P 1,600.
7. Furniture and equipment are estimated to have a useful life of ten years. It was decided
to provide one-month depreciation for December.
Required
a. Prepare the necessary adjusting entries.
b. Prepare a worksheet indicating the unadjusted trial balance, adjustments and the
adjusted trial balance
10
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