Received cash of P70,000 for a three-year advance rental to commence Aug. 31, 2020. Unearned Rental Revenue was credited upon receipt. Salaries from period December 25, 2020 to Jan. 4, 2021 at P230/day were unpaid. Of the recorded interest income account of P6,000, P2,000 was unearned at the end of the period. Purchase of supplies for P3,500 was made. At the end of the year, P2,000 cost of supplies were actually used. Expense method was used in payment of supplies. A P50,000, 5%, 90-day note was received from a client dated Nov. 1, 2020. The interest was not yet collected at the end of the accounting period.

Received cash of P70,000 for a three-year advance rental to commence Aug. 31, 2020. Unearned Rental Revenue was credited upon receipt. Salaries from period December 25, 2020 to Jan. 4, 2021 at P230/day were unpaid. Of the recorded interest income account of P6,000, P2,000 was unearned at the end of the period. Purchase of supplies for P3,500 was made. At the end of the year, P2,000 cost of supplies were actually used. Expense method was used in payment of supplies. A P50,000, 5%, 90-day note was received from a client dated Nov. 1, 2020. The interest was not yet collected at the end of the accounting period.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 11E: Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the...

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