A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to Notes Receivable. B. The Notes payable was issued on 3/1/20, payable after 2 years. C. Notes receivable was received on 10/1/21 and is payable semi-annually for the next 2 years. Interest rate was twice of the Notes payable. D. Supplies amounted to P100,000 on 1/1/21. 69% of total Supplies were used at year-end. No purchases of supplies were made during the year. E. Cotton is under a 2-year rent contract amounting to P720,000 since 1/1/2021. She will pay P180,000 at the end of every quarter, starting March 31, 2021, until the full price is paid. Cotton's last record related to this transaction was on September 30, 2021. F. Cotton availed a 4-year P576,000 fire insurance last 8/1/20. G. Equipment was purchased on 6/1/20. It is estimated that it could be sold for P123,000 at the end of its useful life. H. Cotton failed to record a P300,000 service that she rendered. As of 12/31/21, only 80% of this balance has been collected. (Collections related to this transaction were not recorded as well) I. For 2021, Cotton started off with 4 employees with monthly salaries of P15,000 each. After 3 months, she hired an additional 3 employees with a payment cut-off salary of P10,000. Payment of salaries is made every 15th and last day of the month. J. 5% of total Accounts Receivable is expected to be uncollectible.
A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to Notes Receivable. B. The Notes payable was issued on 3/1/20, payable after 2 years. C. Notes receivable was received on 10/1/21 and is payable semi-annually for the next 2 years. Interest rate was twice of the Notes payable. D. Supplies amounted to P100,000 on 1/1/21. 69% of total Supplies were used at year-end. No purchases of supplies were made during the year. E. Cotton is under a 2-year rent contract amounting to P720,000 since 1/1/2021. She will pay P180,000 at the end of every quarter, starting March 31, 2021, until the full price is paid. Cotton's last record related to this transaction was on September 30, 2021. F. Cotton availed a 4-year P576,000 fire insurance last 8/1/20. G. Equipment was purchased on 6/1/20. It is estimated that it could be sold for P123,000 at the end of its useful life. H. Cotton failed to record a P300,000 service that she rendered. As of 12/31/21, only 80% of this balance has been collected. (Collections related to this transaction were not recorded as well) I. For 2021, Cotton started off with 4 employees with monthly salaries of P15,000 each. After 3 months, she hired an additional 3 employees with a payment cut-off salary of P10,000. Payment of salaries is made every 15th and last day of the month. J. 5% of total Accounts Receivable is expected to be uncollectible.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 5AP
Related questions
Question
1.) How much is adjusted Interest Expense on December 31, 2021?
- 37,500
2.) How much is adjusted Notes Receivable on December 31, 2021?
- 594,337.50
3.) How much is adjusted Interest Income on December 31, 2021?
- 7,337.50
4.) How much was recorded to Supplies Expense on December 31, 2021?
Transcribed Image Text:A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to
Notes Receivable.
B. The Notes payable was issued on 3/1/20, payable after 2 years.
C. Notes receivable was received on 10/1/21 and is payable semi-annually for the next 2 years. Interest
rate was twice of the Notes payable.
D. Supplies amounted to P100,000 on 1/1/21. 69% of total Supplies were used at year-end. No purchases
of supplies were made during the year.
E.
Cotton is under a 2-year rent contract amounting to P720,000 since 1/1/2021. She will pay P180,000 at
the end of every quarter, starting March 31, 2021, until the full price is paid. Cotton's last record
related to this transaction was on September 30, 2021.
F. Cotton availed a 4-year P576,000 fire insurance last 8/1/20.
G. Equipment was purchased on 6/1/20. It is estimated that it could be sold for P123,000 at the end of its
useful life.
H. Cotton failed to record a P300,000 service that she rendered. As of 12/31/21, only 80% of this balance
has been collected. (Collections related to this transaction were not recorded as well)
I.
For 2021, Cotton started off with 4 employees with monthly salaries of P15,000 each. After 3 months,
she hired an additional 3 employees with a payment cut-off salary of P10,000. Payment of salaries is
made every 15th and last day of the month.
J. 5% of total Accounts Receivable is expected to be uncollectible.
Transcribed Image Text:Cotton's Laundry Services
For the year ended December 31, 2021
Trial Balance
5,087,000
265,000
587,000
70,000
270,000
516,000
573,000
5,000,000
200,000
30,000
270,000
89,000
12,957,000
Cash
Accounts Receivable
Allowance for Bad Debts
Notes Receivable
Office Supplies
Prepaid Rent
Prepaid Insurance
Equipment
Accumulated Depreciation - Eqpt
Land
Accounts Payable
2.5% Notes Payable
Cotton, Capital
Cotton, Drawing
Service Income
Supplies Expense
Rent Expense
Utilities Expense
12,000
105,000
527,000
1,500,000
9,960,000
853,000
12,957,000
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