year end: May 31, 2019. Adjusting entries dr cr Cash ₱210,000.00 Accounts receivable 930,000.00 Prepaid advertising 360,000.00 Engineering supplies 270,000.00 Survey equipment 1,890,000.00 Accumulated depreciation - Survey equipment ₱640,000.00 Accounts payable 190,000.00 Unearned survey revenues 120,000.00 Notes payable 500,000.00 Besario Capital 1,120,000.00 Besario Withdrawals 700,000.00 Survey revenues 6,510,000.00 Salaries expense 3,270,000.00 Rent expense 960,000.00 Insurance expense 250,000.00 Utilities expense 160,000.00 Other expenses 80,000.00 Total ₱9,080,000.00 ₱9,080,000.00 The following pertaining to the year-end adjustments is available: a. The P360,000 prepaid advertising represents expenditure made on November 1, 2018 for monthly advertising over the next 18 months. b. A count of the engineering supplies at May 31, 2019 amounted to P90,000. c. Depreciation on the surveying equipment amounted to P160,000 d. One-third of the unearned survey revenues has been earned at year-end. e. At year-end, salaries in the amount of P140,000 have accrued. f. Interest of P60,000 on the notes payable has accrued at year-end.
year end: May 31, 2019. Adjusting entries dr cr Cash ₱210,000.00 Accounts receivable 930,000.00 Prepaid advertising 360,000.00 Engineering supplies 270,000.00 Survey equipment 1,890,000.00 Accumulated depreciation - Survey equipment ₱640,000.00 Accounts payable 190,000.00 Unearned survey revenues 120,000.00 Notes payable 500,000.00 Besario Capital 1,120,000.00 Besario Withdrawals 700,000.00 Survey revenues 6,510,000.00 Salaries expense 3,270,000.00 Rent expense 960,000.00 Insurance expense 250,000.00 Utilities expense 160,000.00 Other expenses 80,000.00 Total ₱9,080,000.00 ₱9,080,000.00 The following pertaining to the year-end adjustments is available: a. The P360,000 prepaid advertising represents expenditure made on November 1, 2018 for monthly advertising over the next 18 months. b. A count of the engineering supplies at May 31, 2019 amounted to P90,000. c. Depreciation on the surveying equipment amounted to P160,000 d. One-third of the unearned survey revenues has been earned at year-end. e. At year-end, salaries in the amount of P140,000 have accrued. f. Interest of P60,000 on the notes payable has accrued at year-end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
year end: May 31, 2019.
| dr | cr | ||
| Cash | ₱210,000.00 | ||
| |
930,000.00 | ||
| Prepaid advertising | 360,000.00 | ||
| Engineering supplies | 270,000.00 | ||
| Survey equipment | 1,890,000.00 | ||
| |
₱640,000.00 | ||
| Accounts payable | 190,000.00 | ||
| Unearned survey revenues | 120,000.00 | ||
| Notes payable | 500,000.00 | ||
| Besario Capital | 1,120,000.00 | ||
| Besario Withdrawals | 700,000.00 | ||
| Survey revenues | 6,510,000.00 | ||
| Salaries expense | 3,270,000.00 | ||
| Rent expense | 960,000.00 | ||
| Insurance expense | 250,000.00 | ||
| Utilities expense | 160,000.00 | ||
| Other expenses | 80,000.00 | ||
| Total | ₱9,080,000.00 | ₱9,080,000.00 | |
| The following pertaining to the year-end adjustments is available: | |||
| a. The P360,000 prepaid advertising represents expenditure made on November 1, 2018 for | |||
| monthly advertising over the next 18 months. | |||
| b. A count of the engineering supplies at May 31, 2019 amounted to P90,000. | |||
| c. Depreciation on the surveying equipment amounted to P160,000 | |||
| d. One-third of the unearned survey revenues has been earned at year-end. | |||
| e. At year-end, salaries in the amount of P140,000 have accrued. | |||
| f. Interest of P60,000 on the notes payable has accrued at year-end. |
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