Prepare the adjusting entry for each of the following for the year ending December 31, 2021:The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired.All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the workweek ending December 24.The Supplies account had a balance of P4,480 of January 1. During the year, P11,000 of supplies were brought. A year-end inventory showed that P6,400 worth of supplies are still on hand.Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. Record the depreciation for the year.

Adjsuting entries are those entries which are passed at the end of the period in order to accurately…

Answered: Prepare the adjusting entry for each of…

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 8E

Related questions

Question

Prepare the adjusting entry for each of the following for the year ending December 31, 2021:

The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired.
All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the workweek ending December 24.
The Supplies account had a balance of P4,480 of January 1. During the year, P11,000 of supplies were brought. A year-end inventory showed that P6,400 worth of supplies are still on hand.
Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. Record the depreciation for the year.

Expert Solution