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can you please explain this adjusting entry that occured per letter (letter A, B, C)  i kind of dont understand how it was done. thank you    ( first picture is the given ) ( the second picture is the answers) i dont understand how the answer was made

can you please explain this adjusting entry that occured per letter (letter A, B, C)  i kind of dont understand how it was done. thank you    ( first picture is the given ) ( the second picture is the answers) i dont understand how the answer was made

Quickbooks Online Accounting
Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter9: Adjusting Entries
Section: Chapter Questions
Problem 1.2C
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can you please explain this adjusting entry that occured per letter (letter A, B, C)  i kind of dont understand how it was done. thank you 

 

( first picture is the given ) ( the second picture is the answers) i dont understand how the answer was made 

A. Entry to record unexpired insurance account balance Date Particulars Amount (Dr.) Amount (Cr.) Dec 31, Unexpired expense 23,000 2009 Cash 23,000 Record unexpired insurance expense B. Entry to record receive portion of account receivable and allowance for doubtful accounts Dec 31, Cash 13,050 2009 Account receivable 13,050 Record account receivable Dec 31, Bad debt 750 2009 Allowance for doubtful accounts 750 Record allowance for doubtful accounts C. entry to payment made in advance regarding advertising contract Dec 31, Advertising expense 2,400 2009 Cash 2,400 Record advance payment of advertising contract
Transcribed Image Text:A. Entry to record unexpired insurance account balance Date Particulars Amount (Dr.) Amount (Cr.) Dec 31, Unexpired expense 23,000 2009 Cash 23,000 Record unexpired insurance expense B. Entry to record receive portion of account receivable and allowance for doubtful accounts Dec 31, Cash 13,050 2009 Account receivable 13,050 Record account receivable Dec 31, Bad debt 750 2009 Allowance for doubtful accounts 750 Record allowance for doubtful accounts C. entry to payment made in advance regarding advertising contract Dec 31, Advertising expense 2,400 2009 Cash 2,400 Record advance payment of advertising contract
Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.
Transcribed Image Text:Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.
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