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On December 31, 2021, Utilities expense for the year as appropriately reported in the statement of comprehensive income of Kwek-Kwek Inc. is P117,000. The statement of financial position as of December 31, 2020 reported accrued utilities expense of P9,000. Total payments for utilities during 2021 were P108,000 which were fully charged to Utilities expense. The company appropriately prepared a reversing entry on January 1, 2021. Which of the following is the correct adjusting entry related to the utilities in 2021? A. Dr. Utilities Expense- P9,000; Cr. Utilities Payable- P9,000 B. Dr. Utilities Payable- P9,000; Cr. Utilities Expense- P9,000 C. Dr. Utilities Expense- P18,000; Cr. Utilities Payable- P18,000 D. Dr. Utilities Payable- P18,000; Cr. Utilities Expense- P18,000

On December 31, 2021, Utilities expense for the year as appropriately reported in the statement of comprehensive income of Kwek-Kwek Inc. is P117,000. The statement of financial position as of December 31, 2020 reported accrued utilities expense of P9,000. Total payments for utilities during 2021 were P108,000 which were fully charged to Utilities expense. The company appropriately prepared a reversing entry on January 1, 2021. Which of the following is the correct adjusting entry related to the utilities in 2021? A. Dr. Utilities Expense- P9,000; Cr. Utilities Payable- P9,000 B. Dr. Utilities Payable- P9,000; Cr. Utilities Expense- P9,000 C. Dr. Utilities Expense- P18,000; Cr. Utilities Payable- P18,000 D. Dr. Utilities Payable- P18,000; Cr. Utilities Expense- P18,000

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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On December 31, 2021, Utilities expense for the year as appropriately reported in the statement of comprehensive income of Kwek-Kwek Inc. is P117,000. The statement of financial position as of December 31, 2020 reported accrued utilities expense of P9,000. Total payments for utilities during 2021 were P108,000 which were fully charged to Utilities expense. The company appropriately prepared a reversing entry on January 1, 2021.

Which of the following is the correct adjusting entry related to the utilities in 2021?

A. Dr. Utilities Expense- P9,000; Cr. Utilities Payable- P9,000

B. Dr. Utilities Payable- P9,000; Cr. Utilities Expense- P9,000

C. Dr. Utilities Expense- P18,000; Cr. Utilities Payable- P18,000
D. Dr. Utilities Payable- P18,000; Cr. Utilities Expense- P18,000
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