Prepare the necessary adjusting entries for the following independent situations. The accounting period is for the year ended December 31, 20x2. 1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with an interest of 12% per annum. No interest payment has been received. 2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is P8,000. The company's assessment based on the aging of receivables, the allowance for bad debts is estimated to be 1% of Accounts Receivable. 3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents premium for one year beginning March 1, 201x2. 4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used during the year. 5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is ten years with estimated resale value of P300,000. 6. The Expense-Rent for P90,000 is advance payment for six months beginning September 16, 20x2. 7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one year note of P240,000 at 10% per annum. 8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2 with interest rate of 6% per annum. The interest for one year was deducted in advance by the bank and was debited to Prepaid Interest. 9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded. 10. The Unearned Rent Income of P48,000 was received from a tenant on September 30, 20
Prepare the necessary adjusting entries for the following independent situations. The accounting period is for the year ended December 31, 20x2. 1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with an interest of 12% per annum. No interest payment has been received. 2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is P8,000. The company's assessment based on the aging of receivables, the allowance for bad debts is estimated to be 1% of Accounts Receivable. 3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents premium for one year beginning March 1, 201x2. 4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used during the year. 5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is ten years with estimated resale value of P300,000. 6. The Expense-Rent for P90,000 is advance payment for six months beginning September 16, 20x2. 7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one year note of P240,000 at 10% per annum. 8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2 with interest rate of 6% per annum. The interest for one year was deducted in advance by the bank and was debited to Prepaid Interest. 9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded. 10. The Unearned Rent Income of P48,000 was received from a tenant on September 30, 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Please show complete solution in each number do not copy answer from bartleby I will dislike
Needs for Adjusting
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-
-Accrued Income
-Accrued Expense.
-Unearned Income
-Prepaid Expenses
Transcribed Image Text:Prepare the necessary adjusting entries for the following independent situations. The accounting
period is for the year ended December 31, 20x2.
1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with
an interest of 12% per annum. No interest payment has been received.
2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is
P8,000. The company's assessment based on the aging of receivables, the allowance for
bad debts is estimated to be 1% of Accounts Receivable.
3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents
premium for one year beginning March 1, 201x2.
4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used
during the year.
5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is
ten years with estimated resale value of P300,000.
6. The Expense-Rent for P90,000 is advance payment for six months beginning September
16, 20x2.
7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one
year note of P240,000 at 10% per annum.
8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2
with interest rate of 6% per annum. The interest for one year was deducted in advance by
the bank and was debited to Prepaid Interest.
9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded.
10. The Unearned Rent Income of P48,000 was received from a tenant on September 30,
20x2 as advance rental for four months.
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