The books of Laredo Placement Agency showed among others the following accounts heir balances as at December 31, 2009, its second year of operation: Cash 80,000 30,000 1,500 6,500 3,750 365,000 22,500 25,000 15,000 334,050 Accounts Receivable Allowance for bad Debts Notes Receivable Prepaid Insurance Car Accumulated Depreciation Accounts Payable Notes Payable Laredo, Capital Laredo, Personal Placement Income Rent Expense Salaries Expense Interest Income Interest Expense Gas & Oil Expense Supplies Expense 35,000 380,000 76,500 168,000 2,500 1,800 11,500 2,500 The following information were given for you to be able to prepare the adjusting entries as of December 31. a. P1,000 worth of supplies are still unused at the end of the year. b. The car was purchased on March 31 of the previous year with an estimated salvage value of P65,000.Hint: Determine annual depreciation based on the accumulated depreciation provided in the year 2008. . Prepaid insurance represents a balance of a one year premium expiring Feb. 28, 2010. 4. The note was received from the customer on November 16, 2009 for 60 days at 24% interest. * Salaries of 4 workers and clerks amounted to P800 per day from Monday to Saturday and payable every Monday. The next payroll date is January 4 covering the previous week payroll from December 28 to January 2. Aln advance payment for placement fee of P30,000 was included in the income account. * The company makes it a policy of providing bad debts based on 1% of the yearly revenue. Required: Journalize the adjusting entries.

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Chapter1: Financial Statements And Business Decisions
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he books of Laredo Placement Agency showed among others the following accounts
their balances as at December 31, 2009, its second year of operation:
Cash
Accounts Receivable
Allowance for bad Debts
Notes Receivable
80,000
30,000
Prepaid Insurance
Car
Accumulated Depreciation
Accounts Payable
Notes Payable
Laredo, Capital
Laredo, Personal
Placement Income
1,500
6,500
3,750
365,000
22,500
25,000
15,000
334,050
35,000
380,000
76,500
168,000
2,500
Rent Expense
Salaries Expense
Interest Income
Interest Expense
Gas & Oil Expense
Supplies Expense
1,800
11,500
2,500
The following information were given for you to be able to prepare the adjusting entries
as of December 31.
a. P1,000 worth of supplies are still unused at the end of the year.
b. The car was purchased on March 31 of the previous year with an estimated salvage value
of P65,000.Hint: Determine annual depreciation based on the accumulated depreciation
provided in the year 2008.
C. Prepaid insurance represents a balance of a one year premium expiring Feb. 28, 2010.
. The note was received from the customer on November 16, 2009 for 60 days at 24%
interest.
E. Salaries of 4 workers and clerks amounted to P800 per day from Monday to Saturday and
payable every Monday. The next payroll date is January 4 covering the previous week
payroll from December 28 to January 2.
An advance payment for placement fee of P30,000 was included in the income account.
*The company makes it a policy of providing bad debts based on 1% of the yearly revenue.
Required: Journalize the adjusting entries.
Transcribed Image Text:he books of Laredo Placement Agency showed among others the following accounts their balances as at December 31, 2009, its second year of operation: Cash Accounts Receivable Allowance for bad Debts Notes Receivable 80,000 30,000 Prepaid Insurance Car Accumulated Depreciation Accounts Payable Notes Payable Laredo, Capital Laredo, Personal Placement Income 1,500 6,500 3,750 365,000 22,500 25,000 15,000 334,050 35,000 380,000 76,500 168,000 2,500 Rent Expense Salaries Expense Interest Income Interest Expense Gas & Oil Expense Supplies Expense 1,800 11,500 2,500 The following information were given for you to be able to prepare the adjusting entries as of December 31. a. P1,000 worth of supplies are still unused at the end of the year. b. The car was purchased on March 31 of the previous year with an estimated salvage value of P65,000.Hint: Determine annual depreciation based on the accumulated depreciation provided in the year 2008. C. Prepaid insurance represents a balance of a one year premium expiring Feb. 28, 2010. . The note was received from the customer on November 16, 2009 for 60 days at 24% interest. E. Salaries of 4 workers and clerks amounted to P800 per day from Monday to Saturday and payable every Monday. The next payroll date is January 4 covering the previous week payroll from December 28 to January 2. An advance payment for placement fee of P30,000 was included in the income account. *The company makes it a policy of providing bad debts based on 1% of the yearly revenue. Required: Journalize the adjusting entries.
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