Salaries ExpenseUtilities ExpenseGas and Oil ExpenseInterest ExpenseTotal450,350253,75075,00010,0006,961,350 6,961,350TThe following information were given to you for the preparation of the adjusting entries as of December 31.A. P5,500 worth of supplies are still unused at the end of the year.B. Insurance represents the amount of a one-year premium expiring on April 1, 2020C. The note was received from a customer on November 16, 2019 for 60 days at 20% interest.D. An advanced payment for service to be rendered amounting to P120,500 was included in the income account.E. The allowance for bad debts/allowance for impairment (required allowance) is 10% of Accounts Receivable.F. Mr. Gallardo entered into a contract of lease on January 1, 2019 for 2 years. Mr. Gallardo received anadvanced payment amounting to P240,000 from a lessee.G. Mr. Gallardo issued a 16% P100, 000 note to Metro bank dated April 15, 2019.H. The life of the equipment and furniture is 5 years and the estimated residual values are 10,000 and 15,000respectively. The building has an estimated useful life of 10 years and has an estimated residual value ofP200,000.I. Salaries incurred but unpaid as of December 31, P12,000.J.Accrued Commission income amounted to P50,000 is not yet recorded by the company. COMPREHENSIVE PROBLEM AThe unadjusted Trial Balance of Mr. Gallardo for the year ended December 31, 2019 is shown below:Gallardo CompanyUnadjusted Trial BalanceAs of December 31, 2019Account NameCashAccounts ReceivableAllowance for Doubtful AccountsNotes ReceivablePrepaid InsuranceLandEquipmentAccumulated Depreciation - EquipmentFurnitureAccumulated Depreciation - FurnitureBuildingAccumulated Depreciation - BuildingAccounts PayableNotes Payable - Metro BankUnearned Rent IncomeGallardo, CapitalGallardo, DrawingsService IncomeCommission IncomeInterest IncomeSupplies ExpenseSalaries ExpenseUtilities ExpenseGas and Oil ExpenseInterest ExpenseTotalDebit300,0001,350,000500,000162,0001,500,000525,000315,0001,400,000105,000Credit75,250206,000120,000240,000235,000400,000240,0003,379,9751,745,000300,00020,12515,250450,350253.75075,00010.0006.961.350 6.961.350TThe following information were given to you for the preparation of the adjusting entries as of December 31.A. P5.500 worth of supplies are still unused at the end of theyear.B. Insurance represents the amount of a one-year premium expiring on April 1. 2020

Journal Entries: It is the process to record the business transaction by way of debit and credit…

Gas and Oil Expense Interest Expense Total 75,000 10,000 6,961,350 6,961,350 ing information were given to you for the preparation of the adjusting entries as of December 5,500 worth of supplies are still unused at the end of the year. surance represents the amount of a one-year premium expiring on April 1, 2020 he note was received from a customer on November 16, 2019 for 60 days at 20% interest. advanced payment for service to be rendered amounting to P120,500 was included in the inco he allowance for bad debts/allowance for impairment (required allowance) is 10% of Accounts . Gallardo entered into a contract of lease on January 1, 2019 for 2 years. Mr. Gallardo vanced payment amounting to P240,000 from a lessee. - Gallardo issued a 16% P100, 000 note to Metro bank dated April 15, 2019. e life of the equipment and furniture is 5 years and the estimated residual values are 10,000 J TI bildi CUPC CIO

Gas and Oil Expense Interest Expense Total 75,000 10,000 6,961,350 6,961,350 ing information were given to you for the preparation of the adjusting entries as of December 5,500 worth of supplies are still unused at the end of the year. surance represents the amount of a one-year premium expiring on April 1, 2020 he note was received from a customer on November 16, 2019 for 60 days at 20% interest. advanced payment for service to be rendered amounting to P120,500 was included in the inco he allowance for bad debts/allowance for impairment (required allowance) is 10% of Accounts . Gallardo entered into a contract of lease on January 1, 2019 for 2 years. Mr. Gallardo vanced payment amounting to P240,000 from a lessee. - Gallardo issued a 16% P100, 000 note to Metro bank dated April 15, 2019. e life of the equipment and furniture is 5 years and the estimated residual values are 10,000 J TI bildi CUPC CIO

Century 21 Accounting General Journal

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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Adjustment for unearned revenue On June 1, 20Y2, Herbal Co. received 18,900 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 20Y2.
Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8. are as follows: a. Wages accrued but not paid at December 31. $2150 h. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions 1. Using the following integrated financial statement framework, record each adjustment to the appropriate accounts, identifying each adjustment by its letter. After all adjustments are recorded, determine the balances.
Adjusting Entries Exercise 3-52 Allentown Services Inc. is preparing adjusting entries for the year ending December 31, 2019. The following data are available: Interest is owed at December 31, 2019, on a 6-month, 8% note. Allentown borrowed $120,ooo from NBD on September 1, 2019. Allentown provides daily building maintenance services to Mack Trucks for a quarterly fee of $2,700 payable on the fifteenth of the month following the end of each quarter. No entries have been made for the services provided to Mack Trucks during the quarter ended December 31, and the related bill will not be sent until January 15, 2020. At the beginning of 2019, the cost of office supplies on hand was $1,220. During 2019, office supplies with a total cost of $6,480 were purchased from Office Depot and debited to office supplies inventory. On December 31, 2019, Allentown determined the cost of office supplies on hand to be $970. On September 23, 2019, Allentown received a $7,650 payment from Bethlehem Steel for 9 months of maintenance services beginning on October 1, 2019. The entire amount was credited to unearned service revenue when received. Required: Prepare the appropriate adjusting entries at December 31, 2019. CONCEPTUAL CONNECTION What would be the effect on the balance sheet and the income statement if the accountant failed to make the above adjusting entries?
Adjusting Entries The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total 2,840 on December 31. 2. The 247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of 78,000, 25-year life, and 9,000 residual value are to be depreciated; equipment with a cost of 44,000, 8-year life, and 2,000 residual value is also to be depreciated. The straight linemethod is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by 128 and the Office Supplies account reduced by 397 for supplies used during the year. 5. The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total 65,000. 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for 528 of expired insurance. 8. A review of travel expense reports indicates that 310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is 18,270. Required: Journalize the necessary year-end adjusting entries for Drake. Show supporting calculations in your journal entry explanations.
Prepare journal entries to record the business transaction and related adjusting entry for the following: A. March 1, paid cash for one year premium on insurance contract, $18,000 B. December 31, remaining unexpired balance of insurance, $3,000
Ledger accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end of the year, follows: The data needed to determine year-end adjustments are as follows: (a) Supplies on hand at January 31 are 2,850. (b) Insurance premiums expired during the year are 3,150. (c) Depreciation of equipment during the year is 5,250. (d) Depreciation of trucks during the year is 4,000. (e) Wages accrued but not paid at January 31 are 900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors chart of accounts should be used: Wages Payable, 22; Depreciation Expense Equipment, 54; Supplies Expense, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of stockholders equity, and a balance sheet. During the year ended January 31, 20Y2, additional common stock of 7,500 was issued. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
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