y. namjoonie began business on january 1, 2020. the unadjusted trial balance for the first year of operation is found below. the following data were collected for adjustments: 1. the balance in the notes receivable is for a single p60,000 note from a customer dated december 16, 2020. the note, due february 14, 2021, carries an interest rate of 20%. 2. a count of office supplies showed p12,000 still on hand as at december 31. 3. bad accounts should be established amounting to p7,000 which seems to be uncollectible. 4. atty. namjoonie invested p35,000 of the furniture and fixtures when the clinic was opened on january 1. it is estimated to have a useful life of five years, no scrap value.
y. namjoonie began business on january 1, 2020. the unadjusted trial balance for the first year of operation is found below. the following data were collected for adjustments: 1. the balance in the notes receivable is for a single p60,000 note from a customer dated december 16, 2020. the note, due february 14, 2021, carries an interest rate of 20%. 2. a count of office supplies showed p12,000 still on hand as at december 31. 3. bad accounts should be established amounting to p7,000 which seems to be uncollectible. 4. atty. namjoonie invested p35,000 of the furniture and fixtures when the clinic was opened on january 1. it is estimated to have a useful life of five years, no scrap value.
y. namjoonie began business on january 1, 2020. the unadjusted trial balance for the first year of operation is found below. the following data were collected for adjustments: 1. the balance in the notes receivable is for a single p60,000 note from a customer dated december 16, 2020. the note, due february 14, 2021, carries an interest rate of 20%. 2. a count of office supplies showed p12,000 still on hand as at december 31. 3. bad accounts should be established amounting to p7,000 which seems to be uncollectible. 4. atty. namjoonie invested p35,000 of the furniture and fixtures when the clinic was opened on january 1. it is estimated to have a useful life of five years, no scrap value.
atty. namjoonie began business on january 1, 2020. the unadjusted trial balance for the first year of operation is found below. the following data were collected for adjustments: 1. the balance in the notes receivable is for a single p60,000 note from a customer dated december 16, 2020. the note, due february 14, 2021, carries an interest rate of 20%. 2. a count of office supplies showed p12,000 still on hand as at december 31. 3. bad accounts should be established amounting to p7,000 which seems to be uncollectible. 4. atty. namjoonie invested p35,000 of the furniture and fixtures when the clinic was opened on january 1. it is estimated to have a useful life of five years, no scrap value. 5. the office equipment was purchased on february 28 for p280,000. it has as estimated useful life of five years and a residual value of p40,000. 6. the salary of a newly hired secretary, miss queenie, amounting to p9,000 for the month of december, has not been paid and recorded. 7. only p7,000 shown in the unearned legal fees revenue have not been earned.8. the p30,000 worth of furniture and fixtures was bought last july 1, 2020. it has a useful life of 5 years with p5,000 salvage value. 9. on december 31, 2021, miss queenie found out that mr. namjoonie’s legal services rendered to mr. sugashi has not been recorded. the service was rendered last november 12, 2020 amounting to p5,000. 10. the owner of the space mr. namjoonie is renting asked for an advance payment for the month of january 2021. the business paid p3,000 to the owner of the space for this advance payment. namjoonie law office unadjusted trial balance 31-dec-20 debit credit cash 191,000.00 accounts receivable 27,000.00 notes receivable 60,000.00 office supplies 39,000.00 furniture and fixtures 65,000.00 office equipment 280,000.00 accounts payable 5,000.00 unearned legal fees revenue 17,000.00 atty. namjoonie, capital 175,000.00 atty. namjoonie, drawings 16,000.00 legal fees revenue 658,000.00 rent expense 93,000.00 taxes and licenses 15,000.00 utilities expense 69,000.00 total 855,000.00 855,000.00
Transcribed Image Text:Atty. Namjoonie began business on January 1, 2020. The unadjusted trial balance for the
first year of operation is found below. The following data were collected for adjustments:
1. The balance in the Notes Receivable is for a single P60,000 note from a customer dated
December 16, 2020. The note, due February 14, 2021, carries an interest rate of 20%.
2. A count of office supplies showed P12,000 still on hand as at December 31.
3. Bad accounts should be established amounting to P7,000 which seems to be
uncollectible.
4. Atty. Namjoonie invested P35,000 of the furniture and fixtures when the clinic was opened
on January 1. It is estimated to have a useful life of five years, no scrap value.
5. The office equipment was purchased on February 28 for P280,000. It has as estimated
useful life of five years and a residual value of P40,000.
6. The salary of a newly hired secretary, Miss Queenie, amounting to P9,000 for the month
of December, has not been paid and recorded.
7. Only P7,000 shown in the Unearned Legal Fees Revenue have not been earned.
8. The P30,000 worth of Furniture and Fixtures was bought last July 1, 2020. It has a useful
life of 5 years with P5,000 salvage value.
9. On December 31, 2021, Miss Queenie found out that Mr. Namjoonie's legal services
rendered to Mr. Sugashi has not been recorded. The service was rendered last November
12, 2020 amounting to P5,000.
10. The owner of the space Mr. Namjoonie is renting asked for an advance payment for the
month of January 2021. The business paid P3,000 to the owner of the space for this
advance payment.
Namjoonie Law Office
Unadjusted Trial Balance
31-Dec-20
Debit
Credit
Cash
191,000.00
27,000.00
Accounts Receivable
Notes Receivable
60,000.00
Office Supplies
Furniture and Fixtures
39,000.00
65,000.00
Office Equipment
Accounts Payable
Unearned Legal Fees Revenue
Atty. Namjoonie, Capital
Atty. Namjoonie, Drawings
Legal Fees Revenue
Rent Expense
Taxes and Licenses
280,000.00
5,000.00
17,000.00
175,000.00
16,000.00
658,000.00
93,000.00
15,000.00
69,000.00
Utilities Expense
TOTAL
855,000.00
855,000.00
Requirements: Prepare adjusting journal entries (with computation as explanation) for the
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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