Do requirement no. 2 only. Requirement No.1; Journalize and post the following transactions of the New Delivery Servicesduring December 2021.Requirement No.2: Record the adjustments assuming that:1. The Php24,000 rent is for 6 months starting December 1, 20212. The Php60,000 insurance is for 12 months starting October 31, 20213. The unused supplies as of December 31, 2021 amount to Php1,0004. The delivery truck was acquired October 1, 2021 and has an estimated life of 5 yearswithout scrap value.5. Out of Php180,000 cash advance, Php120,00 has been delivered to the customer.Requirement No. 3: Prepare the working paper/worksheet for the month of December 2021. Financial Accounting Project:1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered thebusiness with the following expenditures:a. Mayor's permit, Php5,000b. DTI registration, Php600c. BIR/TIN Registration, Php500d. Transportation during the processing of registration, Php3002. After the business permit was taken, he started the business with the following cashexpenditures:a. Paid in cash rent of office space, Php24,000b. Paid insurance, Php60,000c. Purchased supplies, Php3,000d. Purchased of second-hand delivery truck, Php150,0003. Total delivery income for the month, Php300,000 of which 40% are on account.4. Received cash advance amounting to Php180,000 for delivery services to be rendered in18 months.5. Billed customers for services rendered, Php45,000.6. Expenses paid / incurred during the month were as follows:a. Salaries, Php40,000b. Utilities, Php2,000c. Transportation, Php3,000d. Telephone, Php6,0007. Collected 50% of transaction no. 38. Withdrew cash Php20,000

The adjustment entries are prepared to adjust the revenue and expense for the current period.

Requirement No.2: Record the adjustments assuming that: 1. The Php24,000 rent is for 6 months starting December 1, 2021 2. The Php60,000 insurance is for 12 months starting October 31, 2021 3. The unused supplies as of December 31, 2021 amount to Php1,000 4. The delivery truck was acquired October 1, 2021 and has an estimated life of 5 year without scrap value. 5. Out of Php180,000 cash advance, Php120,000 has been delivered to the customer.

Requirement No.2: Record the adjustments assuming that: 1. The Php24,000 rent is for 6 months starting December 1, 2021 2. The Php60,000 insurance is for 12 months starting October 31, 2021 3. The unused supplies as of December 31, 2021 amount to Php1,000 4. The delivery truck was acquired October 1, 2021 and has an estimated life of 5 year without scrap value. 5. Out of Php180,000 cash advance, Php120,000 has been delivered to the customer.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

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Financial Accounting Project:1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered thebusiness with the following expenditures:a. Mayor’s permit, Php5,000b. DTI registration, Php600c. BIR/TIN Registration, Php500d. Transportation during the processing of registration, Php3002. After the business permit was taken, he started the business with the following cashexpenditures:a. Paid in cash rent of office space, Php24,000b. Paid insurance, Php60,000c. Purchased supplies, Php3,000d. Purchased of second-hand delivery truck, Php150,0003. Total delivery income for the month, Php300,000 of which 40% are on account.4. Received cash advance amounting to Php180,000 for delivery services to be rendered in18 months.5. Billed customers for services rendered, Php45,000.6. Expenses paid / incurred during the month were as follows:a. Salaries, Php40,000b. Utilities, Php2,000c. Transportation, Php3,000d. Telephone, Php6,0007. Collected 50% of transaction no. 38. Withdrew…
Financial Accounting Project:1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered the business with the following expenditures:a. Mayor’s permit, Php5,000b. DTI registration, Php600c. BIR/TIN Registration, Php500d. Transportation during the processing of registration, Php3002. After the business permit was taken, he started the business with the following cash expenditures:a. Paid in cash rent of office space, Php24,000b. Paid insurance, Php60,000c. Purchased supplies, Php3,000d. Purchased of second-hand delivery truck, Php150,0003. Total delivery income for the month, Php300,000 of which 40% are on account.4. Received cash advance amounting to Php180,000 for delivery services to be rendered in 18 months.5. Billed customers for services rendered, Php45,000.6. Expenses paid / incurred during the month were as follows:a. Salaries, Php40,000b. Utilities, Php2,000c. Transportation, Php3,000d. Telephone, Php6,0007. Collected 50% of transaction no. 38. Withdrew…
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The text states, "Overly sufficiently long time periods, net income equals cash inflows minus cash outflows, other than cash flows with owners". Demonstrate the accuracy of this statement in the following scenario: Two friends contributed 50,000 each to form a new business. The owners used the amounts contributed to purchase a machine for 100,000 cash. They estimated that the useful life of the machine was five years and the salvage value was 20,000. They rented out the machine to a customer for an annual rental of 25,000 a year for five years. Annual cash operating costs for insurance, taxes, and other items totaled 6,000 annually. At the end of the fifth year, the owners sold equipment for 22,000, instead of the 20,000 salvage value initially estimated. (Hint: Compute the total net income and the total cash flows other than cash flows with owners for the five-year period as a whole.) You may want to present a table to support your conclusion. If so, please create the table in Excel…