Adjusting entries.

Prepaid expense
Deferrals- di pa
Accrued liabilities
Differed Revenue
Allowance for bad debts –di pa
Depreciation

Prepaid expense – nag bayad bago mag consume o magamit

-supplies expense
-rent expense
-insurance expense

Asset method and expense method

Asset method (used prepaid expense)

(JOURNAL ENTRY)
Mary joy paid rent on the amount of Php 12,000 for 1 year.

Dr. Prepaid Rent

Cr. Cash

(ADJUSTING ENTRY)
What will be the rent expense after 5 months?

Php 12,000- year

12 months per year
12,000/12= Php 1,000/ month
Dr. Rent Expense php 5,000
Cr. Prepaid Rent php 5,000

(JOURNAL ENTRY)
Mary joy bought Php 24,000 supplies for 1 year.

Dr. Prepaid supplies Php 24,000

Cr. Cash Php 24,000

What will be the supplies expense after 8 months?

Php 24,000- year

12 months= per year

24,000/12= Php 2,000/month

Php 2,000 x 8 = Php 16,000.
Dr. Supplies Expense 16,000
Cr. Prepaid Supplies 16,000

Expense Method (unused prepaid expense)

(JOURNAL ENTRY)

Mary joy paid rent on the amount of Php 12,000 for 1 year.
Dr. Prepaid Rent Php 12,000
Cr. Cash Php 12,000
(
(Adjusting Entry)
What will be the unused portion of Rent after 7 months.
Php 12,000- year
12 months per year
12,000/12= Php 1,000

1 year= 12 months
12 months – 7 months=
5 months= Php 5,000

Dr. Prepaid Rent Php 5,000

Cr. Rent Expense Php 5,000

Accrued Liabilities- Postpaid (gamit muna bago bayad).

Dr. Expenses
Cr. Payable
(JOURNAL)
Record Meralco bill worth Php 10,000.

Dr. Utilities Expense

Cr. Utilities Payable

(ADJUSTING)
You paid the meralco bill.
Dr. Utilities Payable
Cr. Cash
Differed Revenue/Unearned Revenue
- di pa ginagawa pero nag bayad na #patricia09
(journal entry)
#5 Received 10,000 as an advance payment for service.
Dr. Cash 10,000
Cr. Unearned Revenue 10,000

(adjusting entry)
Performed service to transaction #5
Dr. Unearned Revenue 10,000
Cr. Service Revenue 10,000

Allowance for bad debts- accounts receivables na hindi na natin makukuha.

Unadjusted Trial Balance

Dr. Accounts receivable 100,000

(ADJUSTING ENTRY)
What will be the amount of account receivable if the management perceived that
15% of the accounts receivable is doubtful to be collected.

Accounts receivable 100,000x15%= 15,000

Dr. Bad debt expense 15,000
Cr. Allowance for bad debts 15,000

Accounts Receivable 100,000

Allowance for bad debts (15,000)
Remaining accounts receivable 85,000
Depreciation- (equipment, machines, furniture and fixtures, building)
- Pag bawas ng halaga sa paglipas ng panahon.

(Acquisition Cost- Salvage Value) / (Useful life time)

Sold computer with salvage value of Php 25,000.

Acquisition cost- Computer= Php 100,000

Salvage Value= Php 25,000
Useful life time= 3 years

(100,000-25,000) / (36)
75,000/36
=2,083.33/month

What will be the depreciation expense after 3 months?

2,083.33/month x 3= Php 6,250

Dr. depreciation expense Php 6,250

Cr. Accumulated depreciation Php 6,250

Equipment Php 100,000

Less Accumulated depreciation Php 6,250
Book Value: 93,750

Tit3