process outsourcing services. The following were the transactions of Entity A during the year. 1. The owner provided an initial capital of P2,000,000 to the business. 2. The business acquired office equipment for P800,000 cash on January 1, 2021. the equipment has a useful life of 10 years. 3. The business paid two years rent in advance amounting to P720,000 on January 1, 2021. 4. Total services fees billed to client amounted to P2,900,000 on account. 5. Total payments for supplies expense amounted to P190,000. 6. Total payments for utilities expense amounted to P260,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Journal entry, ledger, and worksheet
Entity A was formed in 2021 with the primary purpose of providing business
process outsourcing services. The following were the transactions of Entity A during the
year.
1. The owner provided an initial capital of $2,000,000 to the business.
2. The business acquired office equipment for P800,000 cash on January 1, 2021. the
equipment has a useful life of 10 years.
3. The business paid two years rent in advance amounting to $720,000 on January 1,
2021.
4. Total services fees billed to client amounted to P2,900,000 on account.
5. Total payments for supplies expense amounted to 190,000.
6. Total payments for utilities expense amounted to 260,000.
7. Total payments for salaries expense amounted to $1,900,000.
8. Total collections on account receivable amounted to #2,700,000.
Requirements;
a. Provide the Journal entries
b. Post the entries to the ledger
c. Prepared the unadjusted Trial Balance
d. Provide the adjusting entries
e. Prepared the worksheet up to Balance Sheet
Transcribed Image Text:Entity A was formed in 2021 with the primary purpose of providing business process outsourcing services. The following were the transactions of Entity A during the year. 1. The owner provided an initial capital of $2,000,000 to the business. 2. The business acquired office equipment for P800,000 cash on January 1, 2021. the equipment has a useful life of 10 years. 3. The business paid two years rent in advance amounting to $720,000 on January 1, 2021. 4. Total services fees billed to client amounted to P2,900,000 on account. 5. Total payments for supplies expense amounted to 190,000. 6. Total payments for utilities expense amounted to 260,000. 7. Total payments for salaries expense amounted to $1,900,000. 8. Total collections on account receivable amounted to #2,700,000. Requirements; a. Provide the Journal entries b. Post the entries to the ledger c. Prepared the unadjusted Trial Balance d. Provide the adjusting entries e. Prepared the worksheet up to Balance Sheet
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