Prepare correcting entries as of December 31, 2020 1. Depreciation computed on the building for the years 2018, 2019 and 2020 were overstated by P 12,000 per year. 2. Cost of the minor repair on the machinery of P 1,500, made on June 30, 2019, was charged to the machinery account. Machinery is being depreciated at an annual rate of 10%. 3. Unused office supplies as of December 31, 2019 of P 1,250 were overlooked. The company debits office supplies expense account upon purchase of supplies. 4. 3-year insurance premium of P 12,000 was paid on October 1, 2018. The amount was charged to insurance expense account and no adjustments for the unexpired premium had been taken up. 5. Merchandise purchased in 2019 of P 22,000, terms FOB shipping point, were taken up in the books when the goods were received in January 2020. These items were not included in the inventory count made on December 31, 2019. 6. Merchandise sold for P 45,000 was delivered in 2018 and were recorded in January 2020.
Prepare correcting entries as of December 31, 2020 1. Depreciation computed on the building for the years 2018, 2019 and 2020 were overstated by P 12,000 per year. 2. Cost of the minor repair on the machinery of P 1,500, made on June 30, 2019, was charged to the machinery account. Machinery is being depreciated at an annual rate of 10%. 3. Unused office supplies as of December 31, 2019 of P 1,250 were overlooked. The company debits office supplies expense account upon purchase of supplies. 4. 3-year insurance premium of P 12,000 was paid on October 1, 2018. The amount was charged to insurance expense account and no adjustments for the unexpired premium had been taken up. 5. Merchandise purchased in 2019 of P 22,000, terms FOB shipping point, were taken up in the books when the goods were received in January 2020. These items were not included in the inventory count made on December 31, 2019. 6. Merchandise sold for P 45,000 was delivered in 2018 and were recorded in January 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare correcting entries as of December 31, 2020
1. Depreciation computed on the building for the years 2018, 2019 and 2020 were overstated by P
12,000 per year.
2. Cost of the minor repair on the machinery of P 1,500, made on June 30, 2019, was charged to the
machinery account. Machinery is being depreciated at an annual rate of 10%.
3. Unused office supplies as of December 31, 2019 of P 1,250 were overlooked. The company debits
office supplies expense account upon purchase of supplies.
4. 3-year insurance premium of P 12,000 was paid on October 1, 2018. The amount was charged to
insurance expense account and no adjustments for the unexpired premium had been taken up.
5. Merchandise purchased in 2019 of P 22,000, terms FOB shipping point, were taken up in the
books when the goods were received in January 2020. These items were not included in the
inventory count made on December 31, 2019.
6. Merchandise sold for P 45,000 was delivered in 2018 and were recorded in January 2020.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education