This study source was downloaded by 100000863505239 from CourseHero com on 05 13 2023 02 12 17 GMT 05 00 https www coursehero com file 112937034 ACTIVITY 06 Adjusting Entries and Worksheet preparationpdf NATIONAL UNIVERSITY Manila Philippines College of Business Accountancy Department of Accountancy SY 2021 2022 BAINTE1X Integrated Accounting Fundamentals ACTIVITY 6 Adjusting Entries and Worksheet Preparation 1 Based on the following information taken on December 31 identify the accounts to be adjusted whether to be debited DR or credited CR Indicate if it goes to the statement of financial position account SFP or to the income statement account IS Account Title DR or CR IS or SFP Example Company bills a tenant for December rent Rent Receivable Debit SFP Rent Income Credit IS 1 Meralco bills the company for December light service 2 Prepaid Insurance has expired 3 Equipment has a useful life of 10 years 4 Customer s 5 one year note was received on December 1 5 One month of the advance rent of tenant has been earned This study source was downloaded by 100000863505239 from CourseHero com on 05 13 2023 02 12 17 GMT 05 00 https www coursehero com file 112937034 ACTIVITY 06 Adjusting Entries and Worksheet preparationpdf 2 Make the entry to record the following adjustments at the end of the accounting period a Accrued commission income of P10 000 b Accrued utility expense of P5 000 c Bad debts of P1 500 under the allowance method d Bad debts of P2 000 under the direct write off method e Depreciation of equipment for P3 500 f Expired insurance of P4 000 under the liability method g Earned rental of P6 000 under the liability method 3 Refer to Problem 2 f and g a What will be the entry if this is under the expense method Total payment was P12 000 b What will be the entry if this is under the income method Total collection was P10 000 4 Dr Patty Ocampo a consultant employs one college student every summer to help her in her research work As researcher the student works five weekdays Monday to Friday for P450 per day and is paid every Saturday The last three days of May will be paid on June 3 The calendar from May 21 to June 3 is reproduced below Dr Ocampo uses the fiscal period during May 31 Required Prepare the adjustment for accrued salary on May 31 Sun Mon Tues Wed Thurs Fri Sat 21 22 23 24 25 26 27 28 29 30 31 1 2 3 5 On September 15 Bert Motor Service Center issued a 45 day 18 note for P10 000 for a loan from a friend The service uses the fiscal accounting period ending September 30 Required Entries on date of issue end of September and on maturity date 6 Shaina Montes started a magazine publication called The Good Life A subscriber pays P100 for one issue Fifty subscribers made a one year payment on March 1 and another 100 subscribers on August 1 which Montes credited to Advances from Subscribers She sends the magazine to each of these subscribers every month Required a Make the entry to record collections received on March 1 and August 1 b Assuming no changes in subscribers compute for the Subscription Revenue that she should report at the end of December and prepare the journal entry to adjust the liability to a revenue account This study source was downloaded by 100000863505239 from CourseHero com on 05 13 2023 02 12 17 GMT 05 00 https www coursehero com file 112937034 ACTIVITY 06 Adjusting Entries and Worksheet preparationpdf 7 Master Architect designs houses for various clients Its unadjusted trial balance as at December 31 2016 showed among others Unearned Professional Fess Income of P350 000 representing two accounts collected in advance November 10 Monson account P200 000 and December 15 Samson account P150 000 It takes 50 days for a design to be finished and delivered Required a Prepare the entry to adjust the unearned revenue and recognize Professional Fees Income b Make postings to the general ledger accounts appearing below c Extract the balances and show the correct amounts to be reported in the income statement and in the statement of financial position Unearned Professional Fees 404 Date Explanation Ref Debit Credit Balance 2016 Nov 10 Dec 15 Dec 31 GJ 11 GJ 12 AE 200 000 150 000 200 000 350 000 Professional Fees 702 Date Explanation Ref Debit Credit Balance 2016 Dec 31 Total services rendered GJ 12 AE 2 1 000 000 8 KC Modeling Agency gave to De Leon Realty an advance payment for rent which was good for six months Ledger postings appear below Rent Expense Debit Credit Prepaid Rent Debit Credit Required a Make the entry to adjust the ledger accounts affected as at December 31 ends of its accounting period Post your entry This study source was downloaded by 100000863505239 from CourseHero com on 05 13 2023 02 12 17 GMT 05 00 https www coursehero com file 112937034 ACTIVITY 06 Adjusting Entries and Worksheet preparationpdf b How much should be reported in the income statement and in the statement of financial position 9 The unadjusted trial balance of The Spa showed among others Medical Supplies P72 000 and Medical Supplies Expense P0 On December 31 end of the accounting period P15 500 are still on hand Medical Supplies Debit Credit Jan 1 11 500 June 4 35 000 Dec 1 25 500 Medical Supplies Expense Debit Credit a Make the entry on December 31 to adjust for the medical supplies on hand Post the entry b Determine the adjusted balances to be presented in the financial statements 10 Leonard Company purchased a building on August 1 2015 for P2 960 000 plus prepaid insurance for one year P12 000 The building has an estimated useful life of ten years and a P200 000 residual value a Give the entry for the purchase of the building b Give the entry to record the payment for prepaid insurance c Give the entry to adjust for depreciation on December 31 2015 d From the entries present the assets properly classified as current or non current f From the entries present the operating expenses 11 Refer to no 10 For the year 2016 a Post to T accounts the balance of building start with 2016 January 1 balance the accumulated depreciation start with January 1 2016 balance b Make the adjusting entry for 2016 and post c What is the depreciation expense in the income statement d What is the book value of the building in the statement of financial position This study source was downloaded by 100000863505239 from CourseHero com on 05 13 2023 02 12 17 GMT 05 00 https www coursehero com file 112937034 ACTIVITY 06 Adjusting Entries and Worksheet preparationpdf 12 Global Advertising Company handles the