Listed below are transactions made by the Jessica Selisana Consulting during 2020- Received a check from Cebu Ferries in the amount of P270,000 for professional services to be rendered over the next 18 months. July 1 Oct. 1 Paid P135,000 for advertising to be provided for the next 9 months. As at Dec. 31, 2020, P230,000 of salaries have accrued. Assuming that payday is on Jan. 4, 2021 and P620,000 in salaries were paid on Dec. 31 that date. Required: 1. Assume that these transactions were initially recorded in balance sheet accounts record the adjusting entries. Also, record the Jan. 4, 2021 payment of salaries. 2. Now, assume that these transactions were initially recorded in income statement accounts, record the adjusting entries. Also, record the Jan. 1, 2021 reversing entries and the Jan. 4, 2021 payment of salaries.

Listed below are transactions made by the Jessica Selisana Consulting during 2020- Received a check from Cebu Ferries in the amount of P270,000 for professional services to be rendered over the next 18 months. July 1 Oct. 1 Paid P135,000 for advertising to be provided for the next 9 months. As at Dec. 31, 2020, P230,000 of salaries have accrued. Assuming that payday is on Jan. 4, 2021 and P620,000 in salaries were paid on Dec. 31 that date. Required: 1. Assume that these transactions were initially recorded in balance sheet accounts record the adjusting entries. Also, record the Jan. 4, 2021 payment of salaries. 2. Now, assume that these transactions were initially recorded in income statement accounts, record the adjusting entries. Also, record the Jan. 1, 2021 reversing entries and the Jan. 4, 2021 payment of salaries.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter4: The Accounting Cycle

Section: Chapter Questions

Problem 5TIF

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