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Please show solution in each number Needs for Adjusting -Depreciation -Bad Debts/Doubtful Accounts -Accrued Income -Accrued Expense. -Unearned Income -Prepaid Expenses

Please show solution in each number Needs for Adjusting -Depreciation -Bad Debts/Doubtful Accounts -Accrued Income -Accrued Expense. -Unearned Income -Prepaid Expenses

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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Needs for Adjusting

-Depreciation
-Bad Debts/Doubtful Accounts
-Accrued Income
-Accrued Expense.
-Unearned Income
-Prepaid Expenses

Prepare the necessary adjusting entries for the following independent situations. The accounting period is for the year ended December 31, 20x2. 1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with an interest of 12% per annum. No interest payment has been received. 2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is P8,000. The company's assessment based on the aging of receivables, the allowance for bad debts is estimated to be 1% of Accounts Receivable. 3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents premium for one year beginning March 1, 201x2. 4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used during the year. 5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is ten years with estimated resale value of P300,000. 6. The Expense-Rent for P90,000 is advance payment for six months beginning September 16, 20x2. 7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one year note of P240,000 at 10% per annum. 8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2 with interest rate of 6% per annum. The interest for one year was deducted in advance by the bank and was debited to Prepaid Interest. 9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded. 10. The Unearned Rent Income of P48,000 was received from a tenant on September 30, 20x2 as advance rental for four months.
Transcribed Image Text:Prepare the necessary adjusting entries for the following independent situations. The accounting period is for the year ended December 31, 20x2. 1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with an interest of 12% per annum. No interest payment has been received. 2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is P8,000. The company's assessment based on the aging of receivables, the allowance for bad debts is estimated to be 1% of Accounts Receivable. 3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents premium for one year beginning March 1, 201x2. 4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used during the year. 5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is ten years with estimated resale value of P300,000. 6. The Expense-Rent for P90,000 is advance payment for six months beginning September 16, 20x2. 7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one year note of P240,000 at 10% per annum. 8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2 with interest rate of 6% per annum. The interest for one year was deducted in advance by the bank and was debited to Prepaid Interest. 9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded. 10. The Unearned Rent Income of P48,000 was received from a tenant on September 30, 20x2 as advance rental for four months.
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