PRINCIPLES OF ACCOUNTING

Haji L. Labrador BSESS FSM 3A

PRACTICE SET- GIVE THE ADJUSTING ENTRY REQUIRED BY EACH OF THE FOLLOWING:

1. The office supplies account had a P2, 850 balance on January 1, supplies worth
P3,500 were bought during the year; the year end inventory showed P1,450 of
supplies unused.

DATE ACCOUNT NAME F DEBIT CREDIT

JAN. 1 Supplies expense P4, 900

Supplies asset P4, 900

(to record supplies expense)

ANALYSIS
Supplies at the beginning of the year is P2, 850 during the year supplies worthy
P3,500 were bought at the end of the year, the year end inventory showed P1, 450 of
supplies unused.

COMPUTATION
2, 850 + 3, 500 = 6, 350
6, 350 – 1, 450 = 4, 900

2. Depreciation on delivery equipment was estimated at P5, 500 per year.

DATE ACCOUNT NAME F DEBIT CREDIT

Accumulated expense P5, 500

Depreciation expense P5, 500
ANALYSIS
Delivery equipment was estimated be amounting as P5, 500 per year. Accumulated
expense and depreciation expense are amounting to P5, 500.

3. Two months property taxes, estimated at P1, 500 have accrued at the end of the
accounting period.

DATE ACCOUNT NAME F DEBIT CREDIT

Property tax expense P3, 000

A/P P3, 000

ANALYSIS
To record accrued expense

4. Three employees earn P900 a day for a five-day a week that begins on Monday and
ends on Friday. There were paid weekly every Friday. December 31 falls on
Wednesday

DATE ACCOUNT NAME F DEBIT CREDIT

Salaries expense P2, 700

Salaries payable P2,700

ANALYSIS
Recognized the used supplies as an expense by debiting supplies expense and
decrease the asset account supplies by crediting it.

COMPUTATION
900 x 5 = 4, 500
 900 x 2 = 1, 800
4, 500 – 1, 800 = 2, 700