Prepare reversing entries for the following transactions: (a) The beginning balance of the Supplies account was ₱245. During the month the company bought additional supplies in the amount of ₱735. At the end of the month a physical inventory showed ₱343 of unused supplies. (b) The company has a 12% Note Payable in the amount of ₱17,000 due in 6 months. The interest expense for the month has not been recorded. (c) The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is ₱5,500. The other employee is paid ₱650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday. (d) The unearned revenue account shows a balance of ₱46,000. According to the manager 60% of that amount has been earned. (e) At the end of the month ₱5,700 of services had been performed but not yet billed. Journalize the entries to reverse the accounts at January 1. (Hint: One of the accounts was affected by two different adjusting entries). Unadjusted Trial Balance Adjusted Trial Balance Debit Balances Credit Balances Debit Balances Credit Balances Cash 5,000 5,000 Accounts Receivable 32,000 32,600 Supplies 3,600 100 Prepaid Insurance 4,000 1,400
Prepare reversing entries for the following transactions:
(a) The beginning balance of the Supplies account was ₱245. During the month
the company bought additional supplies in the amount of ₱735. At the end of
the month a physical inventory showed ₱343 of unused supplies.
(b)
The company has a 12% Note Payable in the amount of ₱17,000 due in 6
months. The interest expense for the month has not been recorded.
(c)
The company has two employees. The manager is paid on the 15th of every
month for work performed during the first half of the month and on the 1st of
the following month for the work performed during the second half of the
month. His monthly salary is ₱5,500. The other employee is paid ₱650 for
each 5-day work week (Monday - Friday). The last day of the month fell on
Thursday.
(d)
The unearned revenue account shows a balance of ₱46,000. According to
the manager 60% of that amount has been earned.
(e)
At the end of the month ₱5,700 of services had been performed but not yet
billed.
was affected by two different
Unadjusted
Trial Balance
Adjusted
Trial Balance
Debit
Balances
Credit
Balances
Debit
Balances
Credit
Balances
Cash 5,000 5,000
Accounts Receivable 32,000 32,600
Supplies 3,600 100
Prepaid Insurance 4,000 1,400
Equipment 11,000 11,000
Accumulated Depreciation 1,700
Wages Payable 2,000
Unearned Fees 8,900 3,500
Ann Cole, Capital 22,000 22,000
Fees Earned 69,000 75,000
Wages Expense 44,300 46,300
Supplies Expense 3,500
Insurance Expense 2,600
Depreciation Expense 1,700
Total
99,900 99,900 104,200 104,200
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