Fabmpt 2

Dianzee D.
Almarquez Grade 11- ABM GUARANI
1. Supplies account on January 1, 2016, showed a balance of P8,000. On December 31, 2016,
supplies on hand amounted to P3,500. Prepare adjusting journal entries using Asset and
Expense Method. Prove in a ledger that both methods show the same balance of Supplies and
Supplies respectively.
Expense Method
1/01/16 Supplies Expense ₱8,000
Accounts Payable ₱8,000
To record the purchase of supplies on account
12/31/16 Supplies ₱3,500
Supplies Expense ₱3,500
To set-up the value of unused supplies
Asset Method
1/01/16 Supplies ₱8,000
Accounts Payable ₱8,000
To record the purchase of office supplies on account
12/31/16 Supplies Expense ₱4,500

Supplies ₱4,500
To set-up the value of used supplies
2. On August 1, Dr. See received P90,000 for medical fees to be rendered in the next 6 months give
the adjusting entries using both Income and Liability Method. Prove in a ledger that both
methods show the same balance of unearned and earned service income respectively.
3. Water bill received December 26 in the amount of P890 will be paid January 7 of the following
year.
1/07/17 Utilities Expense ₱890
Utilities Payable ₱890
To accrue the cost of water incurred for the month of December but not yet paid
4. Dugas Realty sold the house and lot of Ms. Sue Gapa for P25,000,000. According to their
agreement, Dugas Corp. Is entitled to a 2% commission from Ms. Sue Gapa on the sale. As of
December 31, Dugas Corp. Has not received a check for the commission from ms. Sue Gapa.
Record the accrual on the house and lot on the books of Dougas Realty.
12/31/16 Accounts Receivable ₱500,000
Service Income ₱500,000
To accrue income earned but payment not yet received (₱ 25,000,000 x 2% = ₱ 500,000)
5. Accounts Receivable has a balance of P78,000. It is estimated that 3% of this will be deemed
uncollectible. Prepare adjusting journal entry to value the estimated uncollectible account.
Bad debts expense ₱8,000
Allowance for Bad debts ₱8,000
To record estimated uncollectible accounts (₱78,000 x 3% = ₱2,340)
6. Given the following cases, prepare the adjusting journal entries to record the depreciation
expense for each property on December 31, 2016. Show your computation for each property in
good form. Presented below are the non-current assets of Sniper Company.
Acquisition Date Property Cost (PhP) Salvage Value (PhP) Estimated life
Oct. 31,2016 Building 20,000,000 1,500,000 20 years
June 15, 2016 Furniture 51,000 3,000 12 years
Sept. 1, 2016 Machinery 108,000 8,000 20 years
a. 12/31/16 Depreciation Expense – Building ₱77,083.33
Accumulated Depreciation – Building ₱77,083.33
[(20,000,000 – 1,500,000)/20] = (925,000/12) = 77,083.33
b. 12/31/16 Depreciation Expense – Furniture ₱166.67

Accumulated Depreciation – Furniture ₱166.67
[(51,000 – 3,000)/12] = (4000/12 = (333.33/2) = 166.67
c. 12/31/16 Depreciation Expense – Machinery ₱416.67
Accumulated Depreciation – Machinery ₱416.67
[(108,000 – 8,000)/20] = (5,000/12) = 416.67
Reflection:
1.Adjusting entries allow the accountant to communicate a more accurate picture of the company’s
finances. The owner can read through the financial statements knowing that everything that occurred
during the month is reported even if the financial part of the transaction will occur later.
2.In my daily interaction with the people around me and the life circumstances that I’ve encountered, I
was able to acquire skills and lessons that are surely helpful for my future. The following skills will surely
enable me to efficiently live this life with a purpose:
Being Flexible
Through all the odds and difficulties that I successfully overcome, I learned to be flexible. This skill will
help me to pursue my future plans despite the odds. It will help me to go with the flow of circumstances
in life and never loss my vision for my goal.
Patience
Being patient enough makes me endure longer despite the struggles. Trough this, I learn to live my life
in strides and avoid frustration.
Goal-oriented
As I live forward, I must attain my goal. I learn from my life experiences that I must be determined. In
order to survive and achieve self-actualization, I need to set my goals and achieve them. This will guide
me as I explore my future.
Learning all those things, I become a better person. A new version of me which is stronger, determined
and someone who has self-worth.

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Dianzee D.

Almarquez Grade 11- ABM GUARANI

1/01/16 Supplies Expense ₱8,000

Accounts Payable ₱8,000

To record the purchase of supplies on account

12/31/16 Supplies ₱3,500

Supplies Expense ₱3,500

To set-up the value of unused supplies

1/01/16 Supplies ₱8,000

Accounts Payable ₱8,000

To record the purchase of office supplies on account

12/31/16 Supplies Expense ₱4,500

To set-up the value of used supplies

1/07/17 Utilities Expense ₱890

Utilities Payable ₱890

12/31/16 Accounts Receivable ₱500,000

Service Income ₱500,000

Allowance for Bad debts ₱8,000

To record estimated uncollectible accounts (₱78,000 x 3% = ₱2,340)

Oct. 31,2016 Building 20,000,000 1,500,000 20 years

June 15, 2016 Furniture 51,000 3,000 12 years

Sept. 1, 2016 Machinery 108,000 8,000 20 years

a. 12/31/16 Depreciation Expense – Building ₱77,083.33

Accumulated Depreciation – Building ₱77,083.33

[(20,000,000 – 1,500,000)/20] = (925,000/12) = 77,083.33

b. 12/31/16 Depreciation Expense – Furniture ₱166.67

[(51,000 – 3,000)/12] = (4000/12 = (333.33/2) = 166.67

c. 12/31/16 Depreciation Expense – Machinery ₱416.67

Accumulated Depreciation – Machinery ₱416.67

[(108,000 – 8,000)/20] = (5,000/12) = 416.67

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