Prepare the adjusting entry for each of the ff. situations. The last day of the accounting period is December 31. a. The payment of the P19.000 insurance premium for 2-years in advance was originally recorded as Prepaid Insurance. 1-year of the policy has now expired. b. All employees earn a total of P10.000 per day for a 5-day workweek beginning on Monday and ending Friday. They were paid for the workweek ending Dec. 26. They worked on Monday. Dec. 29. Tuesday, Dec. 30 and Wednesday, Dec. 31. c. The Supplies account had a balance of P4.480 on Jan. 1. During the year, P11,000 of supplies are still on hand. d. Equipment costing P588,000 has a useful life of 5-years with a P80.000 salvage value at the end of five years. Record the depreciation for the year.

Prepare the adjusting entry for each of the ff. situations. The last day of the accounting period is December 31. a. The payment of the P19.000 insurance premium for 2-years in advance was originally recorded as Prepaid Insurance. 1-year of the policy has now expired. b. All employees earn a total of P10.000 per day for a 5-day workweek beginning on Monday and ending Friday. They were paid for the workweek ending Dec. 26. They worked on Monday. Dec. 29. Tuesday, Dec. 30 and Wednesday, Dec. 31. c. The Supplies account had a balance of P4.480 on Jan. 1. During the year, P11,000 of supplies are still on hand. d. Equipment costing P588,000 has a useful life of 5-years with a P80.000 salvage value at the end of five years. Record the depreciation for the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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