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The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returns & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out | Travel Expense | Accounts Payable Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment Advertising Expense 424,260 714,000 198,000 71,550 1,305,824 310,000 120,000 252,000 1,414,200 77,781 63,639 Cash 485,000 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense |Interest Expense Interest Payable Land Merchandise Inventory Mortgage Payable Motor Vehicle Notes Payable due in 2 years Office Equipment Office Supplies 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)

The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returns & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out | Travel Expense | Accounts Payable Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment Advertising Expense 424,260 714,000 198,000 71,550 1,305,824 310,000 120,000 252,000 1,414,200 77,781 63,639 Cash 485,000 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense |Interest Expense Interest Payable Land Merchandise Inventory Mortgage Payable Motor Vehicle Notes Payable due in 2 years Office Equipment Office Supplies 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 2PB: The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal...
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The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Accounts Payable |Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment | Advertising Expense Cash Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense Interest Expense Interest Payable Land Merchandise Inventory |Mortgage Payable |Motor Vehicle |Notes Payable due in 2 years Office Equipment Office Supplies Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returs & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out Travel Expense 424,260 714,000 198,000 1,305,824 310,000 71,550 120,000 252,000 1,414,200 77,781 485,000 63,639 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)
Transcribed Image Text:The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Accounts Payable |Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment | Advertising Expense Cash Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense Interest Expense Interest Payable Land Merchandise Inventory |Mortgage Payable |Motor Vehicle |Notes Payable due in 2 years Office Equipment Office Supplies Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returs & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out Travel Expense 424,260 714,000 198,000 1,305,824 310,000 71,550 120,000 252,000 1,414,200 77,781 485,000 63,639 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)
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