Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the transaction provides another year-end. 1. Hiligaynon Magazine credited Unearned Subscription for ₱80,000 representing advance collection during the year from subscribers of its monthly magazine. As of the end of the year, 60% of the amount has already been earned. 2. Nebraska Landscaping Services paid in advance the interest on its 120-day 12% note for ₱48,000 issued to a creditor on January 18, 2021 and debited the amount to Prepaid Interest. The firm prepares its financial statements on March 31 of every fiscal year. 3. Ohio Tailoring bought a brand new sewing machine on June 15, 2021 for ₱148,000. The asset has an estimated useful life of 10 years and salvage value of 10% of the purchase price.
Prepare the
1. Hiligaynon Magazine credited Unearned Subscription for ₱80,000 representing advance collection during the year from subscribers of its monthly magazine. As of the end of the year, 60% of the amount has already been earned.
2. Nebraska Landscaping Services paid in advance the interest on its 120-day 12% note for ₱48,000 issued to a creditor on January 18, 2021 and debited the amount to Prepaid Interest. The firm prepares its financial statements on March 31 of every fiscal year.
3. Ohio Tailoring bought a brand new sewing machine on June 15, 2021 for ₱148,000. The asset has an estimated useful life of 10 years and salvage value of 10% of the purchase price.
4. Texas Printing Shop bought a printing machine on March 31, 2021 for ₱180,000. On September 1, 2021, the firm bought additional two printing machines at ₱150,000 each. It is the policy of the firm to
5. West Virginia Urban Cable estimates loss on accounts at 10% of Accounts Receivable. As of December 31, 2021, its total accounts receivable amounts to ₱320,000 and the balance of the allowance for doubtful accounts amounts to ₱25,000 before adjustment.
6. Missouri General Services has ₱85,000 outstanding customer accounts and allowance for doubtful accounts of ₱4,250 on January 1, 2021. During the year, the firm rendered ₱567,800 worth of services, 25% of which is on cash basis. It also collected ₱324,550 during the year. The company estimates loss on accounts at 5% of year-end accounts receivable balance.
7. Venus Beauty Parlor has not yet paid the following expenses at year-end: MERALCO. ₱37,400 Maynilad, ₱15,600 and PLDT, ₱7,500.
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