PREPARE ADJUSTING ENTRIES Account Titie and ExplanationDebitCreditCashP10,060Accounts Receivable2,000Prepaid Expenses7,800SuppliesOffice Equipment1,46026,400Accum. Depreciation Eqpt.Notes Payable16,000Interest PayableUnearned Service Revenue15,020Lester Rome, Capital22,000Lester Rome, Withdrawal3,000Service Revenue1,580Supplies Expense2,680Salaries Expense1,200P54,600P54,600More information:1) No interest has yet been paid on the note payable. It bears 10% interest perannum payable for 1 year.2) Salaries earned by the office staff but not yet recorded or paid amounted toP970 by April 30.3) Many clients are asked to make advance payment for accounting services tobe rendered in future months. During April, P5,020 of these advances wereearned by the business.4) Office Supplies on hand by April 30 amounted to P400.5) The office equioment was acquired on April 1 and is being depreciated overan estimated useful life of 10 years with no residual value.6) The company sets up 1% provision for total collectible.Required:Prepare the adjusting entries

In order to finalize the financial statements of the company the closing entries needs to be passed

Account Titie and Explanation Debit Credit Cash P10,060 Accounts Receivable 2,000 Prepaid Expenses 7,800 Supplies Office Equipment 1,460 26,400 Accum. Depreciation Eqpt. Notes Payable 16,000 Interest Payable Unearned Service Revenue 15,020 Lester Rome, Capital 22,000 Lester Rome, Withdrawal 3,000 Service Revenue 1,580 Supplies Expense 2,680 Salaries Expense 1,200 P54,600 P54,600 More information: No interest has yet been paid on the note payable. It bears 10% interest per annum payable for 1 year. Salaries earned by the office staff but not yet recorded or paid amounted to P970 by April 30. Many clients are asked to make advance payment for accounting services to be rendered in future months. During April, P5,020 of these advances were earned by the business. Office Supplies on hand by April 30 amounted to P400. The office equioment was acquired on April 1 and is being depreciated over an estimated useful life of 10 years with no residual value. The company sets up 1% provision for total collectible. equired: Prepare the adjusting entries

Account Titie and Explanation Debit Credit Cash P10,060 Accounts Receivable 2,000 Prepaid Expenses 7,800 Supplies Office Equipment 1,460 26,400 Accum. Depreciation Eqpt. Notes Payable 16,000 Interest Payable Unearned Service Revenue 15,020 Lester Rome, Capital 22,000 Lester Rome, Withdrawal 3,000 Service Revenue 1,580 Supplies Expense 2,680 Salaries Expense 1,200 P54,600 P54,600 More information: No interest has yet been paid on the note payable. It bears 10% interest per annum payable for 1 year. Salaries earned by the office staff but not yet recorded or paid amounted to P970 by April 30. Many clients are asked to make advance payment for accounting services to be rendered in future months. During April, P5,020 of these advances were earned by the business. Office Supplies on hand by April 30 amounted to P400. The office equioment was acquired on April 1 and is being depreciated over an estimated useful life of 10 years with no residual value. The company sets up 1% provision for total collectible. equired: Prepare the adjusting entries

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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