Prepare adjusting entries as of December 31, 2021 for the following: 1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date. 2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest. 4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000. 5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost. 6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000. 7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Prepare adjusting entries as of December 31, 2021 for the following: 1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date. 2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest. 4. DEPRECIATION: Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000. 5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost. 6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000. 7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.1AP
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Prepare adjusting entries as of December 31, 2021 for the following:
1. ACCRUAL: A company issued on November 16, 2021 a 90-day 12% P25,000 note. The note and interest are payable at maturity date.
2. DEFERRAL: A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.A company issued on October 17, 2021 a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest.
3. DEFERRAL: A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The amount was credited to Unearned Interest.
4. DEPRECIATION : Alpha Company depreciates its fixed assets at 10% per annum and maintains salvage value at 10% of acquisition cost. On March 1, 2021 it acquired a set of table and chairs for the manager's office for P82,000 cash. On August 16, 2021, it acquired two computers at a purchase price per unit of P70,000.
5: DEPRECIATION: Bravo Company has been operating for several years now. Its Office Equipment account as of January 1, 2021 has a balance of P950,000 with accumulated depreciation of P220,600. On June 16, 2021 a laptop was acquired for P100,000. All office equipment of the firm has estimated useful life of 10 years with salvage value of 10% of acquisition cost.
6: DEPRECIATION: The furniture and fixtures of Charlie Company are depreciated for 20 years without salvage value. As of December 31, 2021, the fixed asset account is composed of: (a) Furniture and fixtures for the three floors of the building acquired on March 1, 2020 at a lump-sum price of P500,000, and (b) Cabinets and dividers acquired on September 1, 2021 at a cash price of P75,000.
7: DEPRECIATION: Delta Company depreciates its fixed assets at a uniform rate of 10% with scrap value equal to 10% of cost. Its Transportation Equipment account has a balance of P740,000 on December 31, 2021. On May 31, 2021, a business vehicle was acquired for P140,000.
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