Preparing Adjusting EntriesThe Sang Tae Company presented the following information pertaining to accounts that will needadjustments for its November 30, 2019 year-end financial statements.On Oct. 1,2019 Sang Tae paid P10, 800 for 6 month's insurance premiums2. The balance in the leger account Office Supplies amounted to P32,000. A count of the supplies onNovember 30, 2019 totaled P12,800.1.3. Sang Tae received P22,800 on November 1, 2019 from a customer for services to be rendered duringthe months of November, December, January and February 2020.4. Sang Tae acquired Office Equipment costing P352,800 on April 1, 2019, the equipment is expected tolast 5 years after which it will be worthless. The scrap value is 10,500.5. Assume that November 30, 2019 is a Friday and that Sang Tae pays its employees a total of P87,500 onSaturday.Requirements:1. Prepare the adjusting entries as of November 30,20192. Prepare ihe Dec. 1, 2019 entry to record the paymeni of the salaries.43

In the given case, adjusting entries are required on November 30, 2019

Answered: Saturday. Requirements: 1. Prepare the…

Saturday. Requirements: 1. Prepare the adjusting entries as of November 30,2019 2. Prepare the Dec. 1, 2019 entry to record the paymeni of the sala

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 15P: Adjusting Entries At the end of 2019, Richards Company prepared a trial balance, recorded and posted...

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Question

Preparing Adjusting Entries
The Sang Tae Company presented the following information pertaining to accounts that will need
adjustments for its November 30, 2019 year-end financial statements.
On Oct. 1,2019 Sang Tae paid P10, 800 for 6 month's insurance premiums
2. The balance in the leger account Office Supplies amounted to P32,000. A count of the supplies on
November 30, 2019 totaled P12,800.
1.
3. Sang Tae received P22,800 on November 1, 2019 from a customer for services to be rendered during
the months of November, December, January and February 2020.
4. Sang Tae acquired Office Equipment costing P352,800 on April 1, 2019, the equipment is expected to
last 5 years after which it will be worthless. The scrap value is 10,500.
5. Assume that November 30, 2019 is a Friday and that Sang Tae pays its employees a total of P87,500 on
Saturday.
Requirements:
1. Prepare the adjusting entries as of November 30,2019
2. Prepare ihe Dec. 1, 2019 entry to record the paymeni of the salaries.
43

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