Debit Credit

Transaction Account Account Amount Computation

Title Title
1. On December1, 2019, Insurance Unearned Insurance ₱ 2, 885 Insurance
Company received ₱34,620 from GMA Insurance Income Premium 34, 620
Company as insurance premium for one Income
year. The bookkeeper recorded the Divide: # of
payment with a debit to Cash and credit months 12
to Unearned Insurance Income for
Monthly
₱34620.
Insurance 2,885

2. On October 15, 2020, MDF Company Utilities Accrued ₱ 1, 400 Used Internet service from
subscribed to the Globe internet Expense Utilities December 16 - December 31 =
services. The monthly fee of ₱2,800 is Expense ₱ 1, 400
paid every 15th of the month. The
payment on December 15, 2020 has
been recorded by a debit to Utilities
Expense and credit to Cash for ₱5,600.
3. Supplies debited to the store Store Store ₱ 7, 550 Total Store
supplies account during the year, Supplies Supplies Supplies 10, 750
₱10,750. As of December 31, 2019, Expense
₱3,200 is unused. Less: Unused
Store Supplies 3, 200

Used Store
Supplies 7, 550

4. JTC Company paid ₱36,000 on Insurance Prepaid ₱ 3, 000 Insurance 36, 000
December 1, 2020, to ManuLife Expense Insurance
Insurance Company for a year. The Divide: # of
bookkeeper recorded the payment with months 12
a debit to Prepaid Insurance and credit
to Cash for ₱36,000. Monthly
Insurance 3, 000

5. On December 1, 2019, ABS Company Interest Interest ₱ 2, 000 Principal 240, 000
issued a ₱240,000 promissory note to its Expense Payable
supplier, EMC Trading. The note bears Multiply: Annual
an annual interest rate of 10%. No Interest Rate
interest or principal has been made until 10%
the due date. ABS Company prepares its Monthly Interest
monthly financial statements.
Divide: # of 24, 000
months

Monthly Interest 12

2, 000