Scribd
Upload
925 views

Assignment Adjusting Entries

The document provides instructions for two accounting problems involving adjusting entries. Problem 1 has 7 parts asking to prepare adjusting entries for various transactions that occurred throughout the year. Problem 2 has 7 parts providing additional financial information and asking to prepare the related adjusting entries as of June 30, 2021. The document requires the entries to be provided as images or PDF files.

Uploaded by

Kim Patrick Victoria
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
925 views

Assignment Adjusting Entries

The document provides instructions for two accounting problems involving adjusting entries. Problem 1 has 7 parts asking to prepare adjusting entries for various transactions that occurred throughout the year. Problem 2 has 7 parts providing additional financial information and asking to prepare the related adjusting entries as of June 30, 2021. The document requires the entries to be provided as images or PDF files.

Uploaded by

Kim Patrick Victoria
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

General Instruction.

Write your answers legibly in a sheet of paper and upload your answers as image
(jpg) or portable document file (pdf). Make sure that the images are clear.

Problem 1 (10 points)

Prepare the adjusting entries for RiCargo Dalisay Inc. under each of the following for year ending
December 31, 2021.

a. Paid P24,000 for a 1-year fire insurance policy to commence on September 1. The amount of
premium is debited to Prepaid Insurance.
b. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Bank of the Philippine
Islands on October 1, 2021.
c. Paid P160,000 cash to purchase a delivery van on January 1. The van was expected to have a 3-
year life and a, P10,000 salvage value. Depreciation is computed on a straight-line basis.
d. Received a P18,000 cash advance for a contract to provide services in the future. The contract
required a 1-year commitment, starting April 1. (Use the Liability Method – also include the
original entry)
e. Purchased P6,400 of supplies on account. At year’s end, P750 of supplies remained on hand.
(Use Expense Method – also include the original entry)
f. Invested P90,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was
acquired on May 1 and carried a 1-year term to maturity.
g. Paid P78,000 cash in advance on September 1 for a 1-year lease on office space. (Use the Asset
Method – also include the original entry)

Problem 2 (10 points)

On June 30, 2021, the end of fiscal year, the following information is available to Calvin Reyes’s
accountants for making adjusting entries. Assume you are the accountant and prepare the adjusting
entries.

a. Among the liabilities of the entity is P2,400,000 mortgage payable. On June30, the accrued
interest on this mortgage amounted to P120,000.
b. Assume that on, July 2, a Friday, the entity, which is on a five-day workweek and pays
employees weekly, paid its regular employees P192,000.
c. The supplies account showed a beginning balance of P16,150 and purchases during the year of
P37,660. The year-end inventory revealed supplies on hand of P11,860.
d. The Prepaid Insurance account showed the following entries on June 30:

Beginning Balance P15,300


January 1 29,000
May 1 33,660

The beginning balance represents the unexpired portion of a one-year policy purchased in April
of the previous year. The January 1 entry represented a new one-year policy, and in May 1 entry
is the additional coverage for a three-year policy. (One entry per transaction.)
e. The following table contains the cost and annual depreciation for buildings and equipment, all of
which were purchased on October 1, 2020. (One entry per transaction and round your answer
to two decimal places)

Account Cost Annual Depreciation


Buildings P 1,850,000 P 73,000
Equipment 2,180,000 218,000

f. On June 1, the entity completed negotiations with another client and accepted an advance of
P210,000 for services to be performed in the next year. The P210,000 was credited to Unearned
Service Revenues.

g. It is estimated that 2% of his outstanding accounts receivable will be uncollected. On June 30,
his Accounts Receivable balance shows a debit balance of P450,000 and credit balance of
P1,740,000. (Round your answer to two decimal places)

You might also like