Prepare adjusting entries as of December 31, 2021 for the following: 1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date. 2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest. 4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000. 5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost. 6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000. 7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Prepare adjusting entries as of December 31, 2021 for the following: 1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date. 2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest. 4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000. 5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost. 6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000. 7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Prepare adjusting entries as of December 31, 2021 for the following: 1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date. 2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest. 4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000. 5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost. 6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000. 7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Prepare adjusting entries as of December 31, 2021 for the following:
1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date.
2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.
3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest.
4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000.
5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost.
6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000.
7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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