From the following given data, prepare adjusting journal entries for the year ended December 31, 2021: Purchase of supplies for P3,000. At the end of the year, P1,000 cost of supplies were actually used. Expense method was used in payment of supplies. A P48,000 6%, 120-day note was received from a client dated November 1, 2021. The interest was not yet collected at the end of the accounting period. Before adjustments, the balance of laundry supplies inventory was P35,000. Physical count of supplies inventory was P15,000. An office equipment was acquired on May 31, 2021 for P150,000. The office equipment has an estimated life of 5 years without scrap value. A copying machine was rented on November 30, 2021 at P1.00/copy of production. It reported to have produced 300 copies as of December 31, 2021. No payment was made as of this date. Signed an advertising contract on December 1, 2021 with a radio station for P3,500. The contract will commence upon payment on December 15. 2021 and will terminate on January 15, 2022. Expense method is used in recording prepayment. Supplies inventory showed a balance of P40,000 as of December 31, 2021. During the year, P25,000 cost of supplies were purchased and at the end of December 31, 2022, P20,000 were found to be on hand.

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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From the following given data, prepare adjusting journal entries for the year ended December 31, 2021:

Purchase of supplies for P3,000. At the end of the year, P1,000 cost of supplies were actually used. Expense method was used in payment of supplies.
A P48,000 6%, 120-day note was received from a client dated November 1, 2021. The interest was not yet collected at the end of the accounting period.
Before adjustments, the balance of laundry supplies inventory was P35,000. Physical count of supplies inventory was P15,000.
An office equipment was acquired on May 31, 2021 for P150,000. The office equipment has an estimated life of 5 years without scrap value.
A copying machine was rented on November 30, 2021 at P1.00/copy of production. It reported to have produced 300 copies as of December 31, 2021. No payment was made as of this date.
Signed an advertising contract on December 1, 2021 with a radio station for P3,500. The contract will commence upon payment on December 15. 2021 and will terminate on January 15, 2022. Expense method is used in recording prepayment.
Supplies inventory showed a balance of P40,000 as of December 31, 2021. During the year, P25,000 cost of supplies were purchased and at the end of December 31, 2022, P20,000 were found to be on hand.

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