Please show solution in each numberNeeds for Adjusting-Depreciation-Bad Debts/Doubtful Accounts-Accrued Income-Accrued Expense.-Unearned Income-Prepaid Expenses Prepare the necessary adjusting entries for the following independent situations. The accountingperiod is for the year ended December 31, 20x2.1. The note amounting to P500,000 was received from a customer on October 1, 20x2 withan interest of 12% per annum. No interest payment has been received.2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts isP8,000. The company's assessment based on the aging of receivables, the allowance forbad debts is estimated to be 1% of Accounts Receivable.3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance representspremium for one year beginning March 1, 201x2.4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was usedduring the year.5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life isten years with estimated resale value of P300,000.6. The Expense-Rent for P90,000 is advance payment for six months beginning September16, 20x2.7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a oneyear note of P240,000 at 10% per annum.8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2with interest rate of 6% per annum. The interest for one year was deducted in advance bythe bank and was debited to Prepaid Interest.9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded.10. The Unearned Rent Income of P48,000 was received from a tenant on September 30,20x2 as advance rental for four months.

Adjusting entries are those type of journal entries which are passed at the end of accounting…

Answered: Please show solution in each number…

Please show solution in each number Needs for Adjusting -Depreciation -Bad Debts/Doubtful Accounts -Accrued Income -Accrued Expense. -Unearned Income -Prepaid Expenses

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Please show solution in each number

Needs for Adjusting

-Depreciation
-Bad Debts/Doubtful Accounts
-Accrued Income
-Accrued Expense.
-Unearned Income
-Prepaid Expenses

Prepare the necessary adjusting entries for the following independent situations. The accounting
period is for the year ended December 31, 20x2.
1. The note amounting to P500,000 was received from a customer on October 1, 20x2 with
an interest of 12% per annum. No interest payment has been received.
2. The balance of Accounts Receivable is P1,000,000 and the Allowance for Bad Debts is
P8,000. The company's assessment based on the aging of receivables, the allowance for
bad debts is estimated to be 1% of Accounts Receivable.
3. The Expense-Insurance of P24,000 shown in the unadjusted trial balance represents
premium for one year beginning March 1, 201x2.
4. The Office Supplies in the unadjusted trial balance of P12,000, only P9,500 was used
during the year.
5. The vehicle was acquired for P1,500,000 on July 16, 20x2. The estimated useful life is
ten years with estimated resale value of P300,000.
6. The Expense-Rent for P90,000 is advance payment for six months beginning September
16, 20x2.
7. The Interest Income of P24,000 was received on August 1, 20x2 from an issuer for a one
year note of P240,000 at 10% per annum.
8. The Note Payable for P1,000,000 is a loan proceeds from a Bank on October 16, 20x2
with interest rate of 6% per annum. The interest for one year was deducted in advance by
the bank and was debited to Prepaid Interest.
9. Unpaid bills for Light, Communication and Water for P15,000 were not yet recorded.
10. The Unearned Rent Income of P48,000 was received from a tenant on September 30,
20x2 as advance rental for four months.

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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