lll 1:45 Od ended?b) How munh amount of Rent Expense account that will be shown in the Income Statement73%Exercise 2 -2The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as of December31, 20A showed in part the Accounts Receivable and its related Estimates UncollectibleAccounts:DebitCreditP 300,000Accounts ReceivableEstimated Uncollectible AccountP 4,0001. If at the end of the year, the Estimated Uncollectible Account is to be provided at 3% of itsoutstanding receivable, what would the amount of adjustment be?2. What is the required adjusting entry on December 31, 20A?3. What is the Estimated Realizable Value of the Accounts Receivable as of December 31, 20A?4. If the Estimated Uncollectible Account should be 'increased by 2% of the outstandingreceivable account, what should be the adjusting entry needed?5. If the Estimated Uncollectible Account should be "increased to" 2% - of the outstandingreceivable account, what should be the adjusting entry needed?Exercise 3. Preparation of Adjusting Journal EntriesFrom the following given data, prepare adjusting journal entries for the year ended December 31,20A:1) Purchase of supplies for P3,000. At the end of the year, P1,000 cost of supplies were actuallyused. Expense method was used in payment of supplies,2) A P48,000 6%, 120-day note was received from a client dated Nov. 1, 20A. The interest wasnot yet collected at the end of the accounting period.3) Before adjustments, the balance of laundry supplies inventory was P35,000 Physical count ofsupplies inventory was P15,000.4) An office equipment was acquired on May 31, 20A for P150,000. The office equipment hasan estimated life of 5 years without scrap value.5) A copying machine was rented on November 30, 20A at P1.00/copy of production. It reportedto have produced 300 copies as of December 31, 20A. No payment was made as of this date.6) Signed an advertising contract on December 1, 20A with a radio station for P3,500. Thecontract will commence upon payment on December 15, 20A and will terminate on January 15,208. Expense method is used in recording prepayment.7) Supplies Inventory showed a balance of P40,000 as of December 31, 20A. During the year,P25,000 cost of supplies was purchased and at the end of December 31, 20B, P20,000 werefound to be on hand.LII lll 1:45 On 73%[Template] E.DEFERRALSExercise 2-1On September 1, 20A, Maria Theresa C Apostol, owner of Cateel Fitness Centre paid an advancerental on a space of the building it occupies in the amount of Pg4,000. This covers the periodfrom September 1, 20A to September 1, 20B and the accounting period ends on December 31,20A.Q-1 If Asset Method or Real Approach is used in recording the prepayment, what is yourjournal entry on September 1, 20A?If Expense Method or Nominal Approach is used in recording the prepayment, what isQ-2.your journal entry on September 1, 20A?Q-3. How much of the P84,000 advanced rental payment will expire or will be expensed at theend of each month?Q4. How many months will cover the expense portion?fromtoQ5.How many months will cover the asset portion?fromtoQ6.How much of the P84,000 prepayment will be considered as Expense?as Asset?Q7.If Asset Method or Real Approach is used in recording the prepayment, what is youradjusting journal entry on December 31, 20A?Q8 If Expense Method or Nominal Approach is used in recording the prepayment, what is youradjusting journal entry on December 31, 20A?0-9 Regardless of what method is used in recording the prepayment,a) How much amount of Prepaid Rent account that will be shown in the Balance Sheet asof December 31, 20A?b) How much amount of Rent Expense account that will be shown in the Income Statementfor the period ended?Exercise 2 - 2The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as of December31, 20A showed in part the Accounts Receivable and its related Estimates UncollectibleAccounts:DebitCreditP 300,000Accounts ReceivableEstimated Uncollectible AccountP 4,0001If at the ond of tho voar the Ectimatod L Incolloctible Account ic to bo provided at 2e of itc

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On September 1, 20A, Maria Theresa C Apostol, owner of Cateel Fitness Centre paid an advance rental on a space of the building it occupies in the amount of P84,000. This covers the period from September 1, 20A to September 1, 20B and the accounting period ends on December 31, 20A. Q-1 If Asset Method or Real Approach is used in recording the prepayment, what is your journal entry on September 1, 20A? Q-2. If Expense Method or Nominal Approach is used in recording the prepayment, what is your journal entry on September 1, 20A? Q-3. How much of the P84,000 advanced rental payment will expire or will be expensed at the end of each month?

On September 1, 20A, Maria Theresa C Apostol, owner of Cateel Fitness Centre paid an advance rental on a space of the building it occupies in the amount of P84,000. This covers the period from September 1, 20A to September 1, 20B and the accounting period ends on December 31, 20A. Q-1 If Asset Method or Real Approach is used in recording the prepayment, what is your journal entry on September 1, 20A? Q-2. If Expense Method or Nominal Approach is used in recording the prepayment, what is your journal entry on September 1, 20A? Q-3. How much of the P84,000 advanced rental payment will expire or will be expensed at the end of each month?

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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