Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance he prepared himself. He understands that he needs to make some adjusting entries at the end of the year. However, is unsure how to make the adjustments and he came up to you for assistance. Fernandez Housing Trial Balance December 31, 2018 Cash P503,000.00 15,000.00 20,000.00 Account receivable Office supplies Prepaid insurance Housing unit Accounts payable 24,000.00 500,0000 P1,000.00 21,000.00 1,000,000.00 75,000.00 Unearned rental revenue Fernandez, capital Rent income Salaries expense Utilities expense 25,000.00 10,000.00 P1,097,000.00 P1,097,000.00 Total Additional information: a. 5% of the accounts receivable above is doubtful of collection. b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December 1, 2018. c The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage value. d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is given in bulk every 10 and 25h of the month. e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1, 2018.
Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance he prepared himself. He understands that he needs to make some adjusting entries at the end of the year. However, is unsure how to make the adjustments and he came up to you for assistance. Fernandez Housing Trial Balance December 31, 2018 Cash P503,000.00 15,000.00 20,000.00 Account receivable Office supplies Prepaid insurance Housing unit Accounts payable 24,000.00 500,0000 P1,000.00 21,000.00 1,000,000.00 75,000.00 Unearned rental revenue Fernandez, capital Rent income Salaries expense Utilities expense 25,000.00 10,000.00 P1,097,000.00 P1,097,000.00 Total Additional information: a. 5% of the accounts receivable above is doubtful of collection. b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December 1, 2018. c The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage value. d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is given in bulk every 10 and 25h of the month. e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1, 2018.
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 22MCQ
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Question
Transcribed Image Text:Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance
he prepared himself. He understands that he needs to make some adjusting entries at the end of the year.
However, is unsure how to make the adjustments and he came up to you for assistance.
Fernandez Housing
Trial Balance
December 31, 2018
Cash
P503,000.00
Account receivable
15,000.00
Office supplies
Prepaid insurance
Housing unit
Accounts payable
Unearned rental revenue
20,000.00
24,000.00
500,000.00
P1,000.00
21,000.00
Fernandez, capital
Rent income
1,000,000.00
75,000.00
Salaries expense
Utilities expense
Total
25,000.00
10,000.00
P1,097,000.00
P1,097,000.00
Additional information:
a. 5% of the accounts receivable above is doubtful of collection.
b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December
1, 2018.
c. The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage
value.
d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is
given in bulk every 10th and 25th of the month.
e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1,
2018.
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