MELGAR NATIONAL HIGH SCHOOL

FUNDAMENTA
Name of Learner: ______________________________________
Grade and Section: ______________________________________
Date: _______________________________________ 11
SHS

LEARNING ACTIVITY SHEET 4.2 11

PROBLEM SOLVING
1. At the beginning of the year, the company purchased office supplies
amounting to P10,000. It was determined that 40% remained on hand and
unused at the end of the year. How much is the supplies expense for the
year?

2. The policy of the company is set allowance for doubtful accounts equal to 3%
of the net credit sales. How much is the doubtful accounts expense assuming
that the company recorded net credit sales of P235,000 for the current year?

3. The company’s building was acquired January 2, 2018 for a total cost of
P1,875,000 on cash basis. It was estimated to have a residual value of
P375,000 and will be useful for 30 years. How much is the depreciation
expense for the year 2020?

4. The company received P36,000 for a one-year service contract that will start
November 1, 2020. How much is the service income for the year 2020?

5. The company paid P24,000 for a two-year insurance coverage that will start
on January 1, 2020. As of December 31, 2020, how much is the remaining
balance of Prepaid Insurance?

1
MELGAR NATIONAL HIGH SCHOOL

FUNDAMENTA
Name of Learner: ______________________________________
Grade and Section: ______________________________________
Date: _______________________________________ SHS
11
LEARNING ACTIVITY SHEET 4.2A 11
ADJUSTING ENTRIES

Directions: Prepare the necessary adjusting entries for the following problems.

1. The service equipment of ABC Services has an original cost of P250,000. It

was estimated to have a useful life of 5 years without any salvage value.

2. The net credit sales for the year totaled P625,000. It was estimated that 2.5%
of the net credit sales is doubtful of collection.

3. Of the office supplies purchased by ABM Company amounting to P8,000, it

was determined that 75% was actually consumed during the year. It was
initially recorded using Asset Method.

4. ABC Company pays its workers every Saturday. December 31 falls on

Wednesday and 3-day salary amounting to P7,500 accrued as of that day.

5. The company received P120,000 for one-year rental from a tenant that will
start on December 1, 2020. Income Method was used.