ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Prepare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit…
Prepare the adjusting entries on December 31, 2019, the end of the annual accounting period,on the following independent data. Show your computations after each entry.1. The Insurance Expense account had a debit balance on December 31, 2019 of P 36,000 representing premium for a 2-year fire insurance policy effective October 1, 2019.2. Rent Income was credited for P 18,000 on November 1, 2019 representing nine months rent collected in advance.3. Equipment per general ledger on December 31, 2019 shows a balance of P 372,000. Equipment acquired during the year was P 52,000 on April 1, 2019. All equipment is to be depreciated at the rate of 25% per annum.4. As of December 31, 2019, commissions already earned but not yet collected amounted to P 48,000.5. Office Supplies costing P 9,000 bought during the period was debited to the Office Supplies account. Of the amount, P 5,000 were consumed during the year.6. Unearned Service Fees account showed a credit balance of P 80,000 pergeneral…
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- Assume the following data for Lusk Inc. before its year-end adjustments: Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returnsarrow_forwardThe following is the adjusted trial balance data for Emmas Alterations as of December 31, 2019. A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth). D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardThe Question: "XYZ Company records its adjusting entries at the end ofevery month. The following accounts were taken from XYZCompany's adjusted trial balance at January 31, 2029: Prepaid Insurance $7,280Insurance Expense $ 520 The prepaid insurance shown above relates to a policythat, when purchased, was a 3-year policy. Assume XYZCompany has a year-end of December 31. Calculate the number of months of the insurance policythat have expired (i.e., been used up)..." .... My Answer/reasoning: the expense for january may just be the monthly expense, no? i thought $520/mo * 36 months = $18,720 total... $18,720 (original cost) - $7,280 (prepaid insurance) = $11,440 insurance used. $11,440/$520 (per month) = 22 months usedarrow_forward
- CHOOSE FROM THE FOLLOWING ACCOUNTS FOR THE CORRECT ACCOUNT OF ADJUSTING ENTRIES: deferred revenue salesarrow_forwardThe beginning balance represented the unexpired portion of a one-year policy On Nov. 30, 2019, the end of fiscal year, the following information is available to enable year were P45,260. The ending inventory revealed supplies on hand of P 13,970. Preparing the Adjusting Entries at Year-End a. The Supplies account showed a beginning balance of P21,740. Purchases during the you you to prepare Edgar Detoya Research and Development adjusting entries: b. The Prepaid Insurance account showed the following on November 30. Beginning balance July 1 P35,800 42,000 October 1 72,720 The beginning balance represented the unexpired portion of a one-yeal pand purchased in September 2018. The July 1 entry represented a new one-year policy, eme the Oct. 1 entry is additional coverage in the form of a three-year policy. c. The following table contains the cost and annual depreciation for buildings ana equipment, all of which the entity purchased before the current year: Annual Depreciation P145,000…arrow_forwardThe balance in the prepaid insurance account, before adjustment at the end of the year, is $18,655. The year end is March 31. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $15,945; (b) the amount of unexpired insurance applicable to future periods is $2,710. Refer to the Chart of Accounts for exact wording of account titles.arrow_forward
- Assume a company receives a bill for $10,000 for advertising done during the current year. If this bill is not yetrecorded at the end of the year, what will the adjustingjournal entry include?a. Debit to Advertising Expense of $10,000.b. Credit to Advertising Expense of $10,000.c. Debit to Accrued Liabilities of $10,000.d. Need more information to determinearrow_forwardA. Determine the net increase/decrease in net income for 2021. B. Prepare a compound adjusting journal entry to reflect the correct net income for 2021, assuming that the books of 2021 are still openarrow_forwardThe balance in the prepaid insurance account, before adjustment at the end of the year, is $18,565. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $14,135; (b) the amount of unexpired insurance applicable to future periods is $4,430. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.arrow_forward
- Preparing Adjusting Entries The Sang Tae Company presented the following information pertaining to accounts that will need adjustments for its November 30, 2019 year-end financial statements. On Oct. 1,2019 Sang Tae paid P10, 800 for 6 month's insurance premiums 2. The balance in the leger account Office Supplies amounted to P32,000. A count of the supplies on November 30, 2019 totaled P12,800. 1. 3. Sang Tae received P22,800 on November 1, 2019 from a customer for services to be rendered during the months of November, December, January and February 2020. 4. Sang Tae acquired Office Equipment costing P352,800 on April 1, 2019, the equipment is expected to last 5 years after which it will be worthless. The scrap value is 10,500. 5. Assume that November 30, 2019 is a Friday and that Sang Tae pays its employees a total of P87,500 on Saturday. Requirements: 1. Prepare the adjusting entries as of November 30,2019 2. Prepare ihe Dec. 1, 2019 entry to record the paymeni of the salaries. 43arrow_forwardOn December 31, 2019, Mason Company made following proper year-end adjusting entries: 1. Prepare journal entries to record whatever reversing entries you think appropriate. 2. Explain your reasoning for each reversing entry.arrow_forwardPrepare adjusting Journal entry with explanationarrow_forward
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