TRANSACTIONS

1. Meralco bills the company for December light service.

2. Prepaid Insurance has expired.

3. Equipment has a useful life of 10 years.

4. Customer’s 5% one-year note was received on

December 1.
5. One month of the advance rent of tenant has been
earned.
 ACCOUNT TITLES DEBIT/CREDIT
Utilities Expense Debit
Utilities Payable Credit
Insurance Expense Debit
Prepaid Insurance Credit
Depreciation Expense - Equipment Debit
Accumulated Depreciation - Equipment Credit
Accrued Interest Receivables Debit
Interest Income Credit
Unearned Income Debit
Rent Income Credit
SFP/IS
IS
SFP
IS
SFP
IS
SFP
SFP
IS
SFP
IS
Date Account Titles and Explanations Ref. no. Debit
2020 Adjusting Entries
A Accounts Receivables ₱ 10,000.00
Commission Income
To adjust thefor commission income

B Utilities Payable ₱ 5,000.00

Utilities Expense
To reocord utilities used but not yet paid
C Bad Debt Expense ₱ 1,500.00
Allowance for Bad Debts
To record uncollectibles from clients

D Bad debts expense ₱ 2,000.00

Accounts Receivables
  To write off the account

E Depreciation Expense - Equipment ₱ 3,500.00

Accumulated Depreciation - Equipment
  To record the depriciation of equipment

F Insurance Expense ₱ 4,000.00

Prepaid Insurance
To record used insurance

G Unearned Rent Income ₱6,000.00

Rent Income
To adjust the amount earned
Credit

₱ 10,000.00

₱ 5,000.00

₱ 1,500.00

₱ 2,000.00

₱ 3,500.00

₱ 4,000.00

₱6,000.00
Date Account Titles and Explanations Ref. no. Debit
2020 Adjusting Entries
A Prepaid Insurance ₱8,000.00
Insurance Expense

B Rent Income ₱4,000.00

Unearned Rent Income
To adjust for unearned rent
Credit

₱8,000.00

₱4,000.00
 Debit Credit
may 30 to june 3 Salary Expense 1,500
salary payable 1,500
TO RECORD ACCRUAL EXPENSE IN 3 DAYS
 Debit Credit
15-Sep Cash 10k
Notes Payable 10k

30-Sep Notes Receivable 10k

Service Income 10k

30-Sep Interest receivable 75

Interest Income 75

Maturity date Cash 10,225

Interest Receivable 75
Interest Income 150
Notes Receivable 10,000
 Cash (50 x P1,200)
6. a) 3/1 60,000 60,000
Unearned Subscription
Cash (1,200 x 100)
8/1 120,000 120,000
Unearned Subscription
b) 12/31 Unearned Subscription Subscription Revenue 100,000 100,000
Date Accounts Titles and Explanation Debit
31-Dec Unearned Porfessional Fees 200,000
Professional Fees
To record entry for revenue recognized of Samson Account.

Unearned Porfessional Fees

Debit Credit
Professional Fees 200,000
Opening Balance 350,000
Closing Blance 150,000

Porfessional Fees
Debit Credit
Unearned Professional Fees 200,000

Income Statement
Debit Credit
Professional Fees 200,000
Total 200,000

Balance Sheet
Debit Credit
Unearned Professional 150,000
Total 150,000
Credit

200,000
8
 Medical Supplies Expense
9. a.) 56,500
Medical Supplies 56,500

b.) Medical Supplies Medical Supplies Used

 72,000
12/31 56,500
12/31 56,500
AE AE
SFP 15,500 IS
56,500
10. a) 8/1 Building 2,960,000
Cash 2,960,000
b) 8/1 Prepaid Insurance 12,000
Cash 12,000
c) Depreciation 115,000
Accumulated Depreciation 115,000
(2,760,000=276,000 x 5/12)
10
e) Building P2,960,000
Less: Accum. Deprn. 115,000
Book Value 2,845,000
Prepaid Insurance P     7,000
d) Insurance Expense 5,000
Prepaid Insurance 5,000
f) Operating Expenses - P115,000
Depreciation
Insurance 5,000
 11 Depreciation Expense 276,000
Accum. Depn. 276,000

Building Accumn. Depn.

### 115,000
276,000
391,000
a) Depreciation Expense P 276,000
b) Book Value P2,569,000
12. a) Accounts Receivable 5,500,000
Professional Fees 5,500,000
Cash 3,500,000
Accounts Receivable 3,500,000
Accounts Receivable balance: (3 250 000 + 3 500 000) x 0.05 = 262 500 )
262 500 - 162 500 = P 100 000 Estimated bad debts for IS purpose and AE.

In the statement of financial Position for bad debts should be P262 500.
Not realized value, (5 250 000 - 262 500) = P 4,987,500

D. 3 250 000 - 162 500 =P3 087 500

E. 162 500
for IS purpose and AE.