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PLEASE COMPLETE THE WORKSHEET

PLEASE COMPLETE THE WORKSHEET

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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PLEASE COMPLETE THE WORKSHEET

PROBLEM 7: WORKSHEET & REVERSING ENTRIES Mr. A opened a therapeutic massage clinic called "Wellness 2. The business acquired computer equipment for P700,000 cash Massage" on October 1, 20x1. The following were the transactions 3. Total payments for business permit and other licenses during the three months ended December 31, 20x1: 1. Mr. A invested P1,000,000 cash to the business. 2. The business acquired computer equipment for P700.000 c on October 1, 20x1. 3. Total payments for business permit and other lie amounted to P200,000. 4. The business paid one-year insurance for P42,000 covering the months of October 1, 20x1 to September 30, 20x2. The business uses the expense method in recording prepayments. 5. Total service fees billed to clients amounted to P3,200,000, on account. 6. Total payments for utilities expense amounted to P420,000. 7. Total payments for salaries expense amounted to P2,400,000. 8. Total collections on accounts receivable amounted to P2,900,000. Additional informnation: The equipment has a useful life of 5 years. • Bad debts expense is estimated at 10% of outstanding accounts receivable. • Unpaid rent amounted to P120,000.
Transcribed Image Text:PROBLEM 7: WORKSHEET & REVERSING ENTRIES Mr. A opened a therapeutic massage clinic called "Wellness 2. The business acquired computer equipment for P700,000 cash Massage" on October 1, 20x1. The following were the transactions 3. Total payments for business permit and other licenses during the three months ended December 31, 20x1: 1. Mr. A invested P1,000,000 cash to the business. 2. The business acquired computer equipment for P700.000 c on October 1, 20x1. 3. Total payments for business permit and other lie amounted to P200,000. 4. The business paid one-year insurance for P42,000 covering the months of October 1, 20x1 to September 30, 20x2. The business uses the expense method in recording prepayments. 5. Total service fees billed to clients amounted to P3,200,000, on account. 6. Total payments for utilities expense amounted to P420,000. 7. Total payments for salaries expense amounted to P2,400,000. 8. Total collections on accounts receivable amounted to P2,900,000. Additional informnation: The equipment has a useful life of 5 years. • Bad debts expense is estimated at 10% of outstanding accounts receivable. • Unpaid rent amounted to P120,000.
e. Complete the worksheet up to post-closing trial balance. Prepare the balance sheet and income statement. Requirements: a. Provide the journal entries. b. Post the entries to the ledger. c. Prepare the unadjusted trial balance. d. Provide the adjusting entries. f. Prepar Thi docamert is abio he d darge an StuDocu.com ngs to respective authors Dowmloaded by doan Nabong (pan kano OSIder buvina the criainal copy Accounting Cycle of a Service Business 331 g. h. Prepare the reversing entries.
Transcribed Image Text:e. Complete the worksheet up to post-closing trial balance. Prepare the balance sheet and income statement. Requirements: a. Provide the journal entries. b. Post the entries to the ledger. c. Prepare the unadjusted trial balance. d. Provide the adjusting entries. f. Prepar Thi docamert is abio he d darge an StuDocu.com ngs to respective authors Dowmloaded by doan Nabong (pan kano OSIder buvina the criainal copy Accounting Cycle of a Service Business 331 g. h. Prepare the reversing entries.
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