ADJUSTMENTS Depreciation Exp. – Office Eq.

4,500

a) Interest accrued for the note payable for Accumulated Dep. – Office Eq. 4,500
one month. d) Depreciation of furniture and fixtures, five-
year useful life, no residual value.

Computations:
100,000 x 12% = 12,000 Computations:

12,000 x 1/12 = 1,000 Annual 600,000 - 0

=
Depreciation 5
Adjusting Entry:
Interest Expense 1,000 Annual 600,000
Interest Payable 1,000 =
Depreciation 5

Annual
b) Depreciation of automobile, ten-year useful = 120,000
Depreciation
life, P100,000 estimated residual value per
vehicle.
120,000 x 1/12 = 10,000

Computations:
Adjusting Entry:
Depreciation Exp. – F&F 10,000
Annual 3,200,000 - 200,000
=
Depreciation 10 Accumulated Dep. – F&F 10,000
Annual 3,000,000
=
Depreciation 10
e) P35,000 worth of office supplies were used.
Annual
= 300,000
Depreciation
Computations:
300,000 x 1/12 = 25,000 50,000
-35,000
15,000
Adjusting Entry:
Depreciation Exp. – Auto. 25,000
Adjusting Entry:
Accumulated Dep. – Auto. 25,000 Office Supplies Expense 35,000

Office Supplies 35,000

c) Depreciation of office equipment, five-year
useful life, 10% estimated residual value per
set.
f) One month of rent was expired.
Computations:
Computations:
Annual 300,000 - 30,000 150,000 x 1/6 = 25,000
=
Depreciation 5

Annual 270,000 Adjusting Entry:

=
Depreciation 5 Rent Expense 25,000
Prepaid Rent 25,000
Annual
= 54,000
Depreciation
g) Earned the Japan travel service in full on
54,000 x 1/12 = 4,500 April 30.

Adjusting Entry:
Adjusting Entry:
Unearned Int. Travel Fees 638,000

Int. Travel Fees Earned 638,000