Name & Section ________________________

Score___________

Prepare the adjusting entry for Balugs Company under each of the following scenarios for the year ended
December 31, 2015. Erasures/Alterations are not allowed. Use black/blue ball pen only.
1. Balugs paid 36,000 for a 1-year fire insurance policy to commence on September 1, the amount of premium
was debited to Prepaid insurance.
Adjusting Journal Entry

2.Balugs borrowed P200,000 by issuing a 1-year note with 5% annual interest on November 1, 2015.
Adjusting Journal Entry

3.Balugs acquired a delivery equipment for 200,000 on January 1, 2015. The equipment was expected to have a
4-year life and a 20,000 salvage value. Depreciation is computed on straight line basis.
Adjusting Journal Entry

4.Balugs purchased 8,200 of supplies on account. 850 of supplies remained on hand at year end.
Adjusting Journal Entry

5.Balugs paid 35,000 cash covering 1-year period for renting an office space commencing on September 1.
Adjusting Journal Entry

6.On July 1, Balugs Company paid 16,000 for 8 months insurance premium
Adjusting Journal Entry

7. The balance in the ledger account of office supplies amounted to 28,000. A physical count was made on
December 31 which reveals that the office supplies amounts to 4,800.
Adjusting Journal Entry

8. Balugs Company received 30,000 on November 1, 2015 from a customer for services to be rendered during
the months of November 1, 2015 to March 1, 2016.
Adjusting Journal Entry

9. Balugs Company acquired an office equipment costing P212,000 on March 31, 2015. the equipment has a
useful life of 6 years from the date of acquisition.
Adjusting Journal Entry

10. Balugs purchased 9,600 of supplies on account. 740 of supplies remained on hand at year end. The account
debited is office supplies on the date of acquisition of supplies.
Adjusting Journal Entry