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    Review of Accounting Cycle

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    Annie Rapanut
    The document provides transactions that occurred in 2019 and 2020 for Kelly Corp. It requires identifying adjusting entries in 2019, reversing entries in 2020, journal entries for 2020 transactions, and adjusting entries in 2020. Key accounts include utilities expense, supplies expense, interest income, rent income, and depreciation expense which must be calculated based on the information provided.

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    Review of Accounting Cycle

    Uploaded by

    Annie Rapanut
    269 views2 pages
    The document provides transactions that occurred in 2019 and 2020 for Kelly Corp. It requires identifying adjusting entries in 2019, reversing entries in 2020, journal entries for 2020 transactions, and adjusting entries in 2020. Key accounts include utilities expense, supplies expense, interest income, rent income, and depreciation expense which must be calculated based on the information provided.

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    The document provides transactions that occurred in 2019 and 2020 for Kelly Corp. It requires identifying adjusting entries in 2019, reversing entries in 2020, journal entries for 2020 transactions, and adjusting entries in 2020. Key accounts include utilities expense, supplies expense, interest income, rent income, and depreciation expense which must be calculated based on the information provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    269 views2 pages

    Review of Accounting Cycle

    Uploaded by

    Annie Rapanut
    The document provides transactions that occurred in 2019 and 2020 for Kelly Corp. It requires identifying adjusting entries in 2019, reversing entries in 2020, journal entries for 2020 transactions, and adjusting entries in 2020. Key accounts include utilities expense, supplies expense, interest income, rent income, and depreciation expense which must be calculated based on the information provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Exercise – Review of Accounting Cycle (Adjusting and Reversing Entries)

    The following transactions occurred during the year 2019 and 2020:

    2019
    October 20 Kelly Corp purchased various office supplies in cash amounting to P20,000.
    November 1 Kelly received a 6-month rental fee of P30,000 from a tenant upon occupation of a
    space being rented out on the same date.
    November 18 Kelly purchased an equipment in cash amounting to P50,000. This equipment is
    available for use on the same date. It has a useful life of 5 years.
    November 30 The entity received CAGELCO electric bill for the month ended November 30
    amounting to P25,000.
    December 4 The entity paid the electric bill.
    December 15 The entity received a 3-month promissory note from a customer for a sale of goods
    amounting to P10,000. The note bears an interest of 10%.
    December 31 The entity received CAGELCO electric bill for the month ended December 30
    amounting to P28,000.
    Additional information
    1. The remaining office supplies after a count on December 31 is P5,000.
    2. The entity uses the expense method of recording prepayments and the revenue
    method of recording pre-collections.

    2020
    January 3 The entity paid the December electric bill.
    March 15 The entity received the payment of the customer’s promissory note including the 3-
    month interest.
    June 9 Kelly Corp purchased various office supplies in cash amounting to P60,000.
    August 31 Kelly received a 6-month rental fee of P60,000 from a tenant upon occupation of a
    space being rented out on the same date.
    November 30 The entity received CAGELCO electric bill for the month ended November 30
    amounting to P27,000.
    December 5 The entity paid the electric bill.
    December 31 The entity received CAGELCO electric bill for the month ended December 30
    amounting to P32,000.
    Additional information
    1. The remaining office supplies after a count on December 31 is P7,000.

    Required:

    Write your answers in your JOL. This is not a recorded assessment. This will be discussed tomorrow. Please do
    not attend the live discussion if you did not answer this Exercise. Thank you.

    1. Provide all the adjusting entries in 2019.


    2. Provide the reversing entries in 2020.
    3. Provide the journal entries (other than adjusting entries) for the transactions that occurred in 2020.
    4. Provide the adjusting entries in 2020.
    5. Compute the balance of the following accounts in 2020 based on the transactions given (Tip: Use your T-
    account):
    a. Utilities expense.
    b. Supplies Expense
    c. Interest income
    d. Rent Income
    e. Depreciation Expense
    Prepared by Sir Je

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