Prepare adjusting entries for each of the following transaction for the year ended December 31,20XX. 1. On January 1,20XX the supplies account balance of Php 48,000. During the year, ABM Company purchased Php 158,000 of supplies. At end of the year, supplies inventory showed an amount of Php 50,000. 2. Computer equipment costing Php 35,000 has a useful life of three years with a salvage value of Php 1,000 at the end of its life. Record the depreciation for one year. 3. ABM company borrowed an amount of Php 100,000 to a lending institution on February 20XX. This amount bears an interest of 8% per annum. Record the interest expense for this transaction. 4. The company preferred to pay its rent for two years in the amount of Pho 200,000. This transaction was happened last April 1,20XX. Record the adjusting entry of rent expense. 5. Due to COVID 2019, ABM company did not yet pay the December 16-3 1,20XX salaries of its employees amounting to Php 50,000 because no one wants to go and work in the office. How do you record this obligation?
Prepare adjusting entries for each of the following transaction for the year ended December 31,20XX. 1. On January 1,20XX the supplies account balance of Php 48,000. During the year, ABM Company purchased Php 158,000 of supplies. At end of the year, supplies inventory showed an amount of Php 50,000. 2. Computer equipment costing Php 35,000 has a useful life of three years with a salvage value of Php 1,000 at the end of its life. Record the depreciation for one year. 3. ABM company borrowed an amount of Php 100,000 to a lending institution on February 20XX. This amount bears an interest of 8% per annum. Record the interest expense for this transaction. 4. The company preferred to pay its rent for two years in the amount of Pho 200,000. This transaction was happened last April 1,20XX. Record the adjusting entry of rent expense. 5. Due to COVID 2019, ABM company did not yet pay the December 16-3 1,20XX salaries of its employees amounting to Php 50,000 because no one wants to go and work in the office. How do you record this obligation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare adjusting entries for each of the following transaction for the year ended December 31,20XX.
1. On January 1,20XX the supplies account balance of Php 48,000. During the year, ABM Company purchased Php 158,000 of supplies. At end of the year, supplies inventory showed an amount of Php 50,000.
2. Computer equipment costing Php 35,000 has a useful life of three years with a salvage value of Php 1,000 at the end of its life. Record the depreciation for one year.
3. ABM company borrowed an amount of Php 100,000 to a lending institution on February 20XX. This amount bears an interest of 8% per annum. Record the interest expense for this transaction.
4. The company preferred to pay its rent for two years in the amount of Pho 200,000. This transaction was happened last April 1,20XX. Record the adjusting entry of rent expense.
5. Due to COVID 2019, ABM company did not yet pay the December 16-3 1,20XX salaries of its employees amounting to Php 50,000 because no one wants to go and work in the office. How do you record this obligation?
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