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  • IA1 Assignment 1

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    Roger Gol
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    1. Entity X uses the liability method of initial recording of advance collections of items of income. During the year, Entity X receives P100,000 advance collections. The unearned income account has beginning and ending balances of P40,000 and P30,000 respectively. 2. At the beginning of the year, Entity A has a balance of P20,000 in its prepaid asset account. Entity A does not use reversing entries. Entity A uses the expense method of recording prepayments. During the year, Entity A made total prepayments of P80,000. The adjusted expenses during the year under the accrual basis accounting are P45,000. 3.

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    Intermediate accounting 1

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    1. Entity X uses the liability method of initial recording of advance collections of items of income. During the year, Entity X receives P100,000 advance collections. The unearned income account has beginning and ending balances of P40,000 and P30,000 respectively. 2. At the beginning of the year, Entity A has a balance of P20,000 in its prepaid asset account. Entity A does not use reversing entries. Entity A uses the expense method of recording prepayments. During the year, Entity A made total prepayments of P80,000. The adjusted expenses during the year under the accrual basis accounting are P45,000. 3.

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    © All Rights Reserved
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    7 views5 pages

    IA1 Assignment 1

    Uploaded by

    Roger Gol
    1. Entity X uses the liability method of initial recording of advance collections of items of income. During the year, Entity X receives P100,000 advance collections. The unearned income account has beginning and ending balances of P40,000 and P30,000 respectively. 2. At the beginning of the year, Entity A has a balance of P20,000 in its prepaid asset account. Entity A does not use reversing entries. Entity A uses the expense method of recording prepayments. During the year, Entity A made total prepayments of P80,000. The adjusted expenses during the year under the accrual basis accounting are P45,000. 3.

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    of 5

    Ar

    winL.Vi
    l
    lanuev
    a

    BSACC2BLK-
    1

    1.Ent
    it
    yXusest
    heli
    abil
    it
    ymethodofini
    ti
    alr
    ecor
    dingofadvancecol
    l
    ect
    ionsofi
    temsofincome.Duri
    ngt
    hey
    ear
    ,Ent
    it
    yXr
    ecei
    vesP100,
    000adv
    ancecol
    l
    ect
    ions.The
    unear
    nedi
    ncomeaccounthasbegi
    nni
    ngandendi
    ngbalancesofP40,
    000andP30,000,
    respect
    ivel
    y.

    Requi
    rement
    :Pr
    ovi
    det
    heent
    ri
    esdur
    ingt
    hey
    eari
    ncl
    udi
    ngt
    hey
    ear
    -endadj
    ust
    ingent
    ry.

    Cash. 100,
    000

    Unear
    nedi
    ncome. 100,
    000

    Unear
    nedi
    ncome

    40,
    000 beg.Adv
    ancedcol
    lect
    ion

    Ear
    nedpor
    ti
    on 110,
    000 100,
    000

    End 30,
    000

    Adj
    ust
    ingent
    ri
    es

    Unear
    nedi
    ncome 110,
    000

    I
    ncome. 110,
    000

    2.Atthebeginni
    ngoftheyear
    ,Ent
    it
    yAhasabalanceofP20,
    000init
    sprepai
    dassetaccount
    .Enti
    tyAdoesnotuserever
    singentri
    es.Ent
    ityAusestheexpensemethodof
    recor
    dingprepayment
    s.Duri
    ngtheyear
    ,Ent
    it
    yAmadet ot
    alpr
    epayment
    sofP80,000.Theadjust
    edexpensesdur
    ingtheyearundertheaccrual
    basi
    saccountingar
    eP45,000.

    Requi
    rement
    :Pr
    ovi
    det
    hey
    ear
    -endadj
    ust
    ingent
    ry.

    Adj
    ust
    ingent
    ri
    es

    Pr
    epai
    dasset 35,
    000

    Expense. 35,
    000
    3.CLASSROOM ACTI
    VITY

    ACTI
    VITY#1:
    ACCOUNTI
    NGCYCLEEnumer
    atet
    het
    en(
    10)st
    epsi
    ntheaccount
    ingcy
    cle.Pr
    ovi
    deabr
    iefdescr
    ipt
    ionf
    oreachst
    ep.PLS.DON'
    TCHEAT!

    1.I
    dent
    if
    yingandanal
    yzi
    ngt
    ransact
    ion

    2.Jour
    nal
    izi
    ng

    3.Post
    ing

    4.Pr
    epar
    ingt
    heunadj
    ust
    edt
    ri
    albal
    ance

    5.Pr
    epar
    ingt
    headj
    ust
    ingent
    ri
    es

    6.Pr
    epar
    ingt
    headj
    ust
    edt
    ri
    albal
    ance

    7.Pr
    epar
    ingf
    orf
    inanci
    alst
    atement
    s

    8.Cl
    osi
    ngt
    hebooks

    9.Pr
    epar
    ingt
    hepost
    -cl
    osi
    ngt
    ri
    albal
    ance

    10.Pr
    epar
    ingt
    her
    ever
    singent
    ri
    es
    ACTI
    VITY#2:
    WORKSHEETPREPARATI
    ON

    Thet
    ri
    albal
    anceofSunr
    ayCo.i
    sshownbel
    ow.Thef
    oll
    owi
    ngt
    hey
    ear
    -endadj
    ust
    ment
    s:

    1.2%oft
    het
    otal
    account
    srecei
    vabl
    eisdoubt
    ful
    ofcol
    l
    ect
    ion

    2.Depr
    eci
    ati
    onf
    ort
    hey
    eari
    snoty
    etr
    ecogni
    zed.Theequi
    pmenhasa10-
    yearusef
    ull
    i
    fe.Sunr
    ayCo.usest
    hest
    rai
    ghtl
    imet
    hod.

    3.Thenot
    espay
    abl
    ewasi
    ssuedonSept
    ember1,
    20x
    1.I
    nter
    est10%i
    sdueannual
    l
    y.

    4.Sunr
    ayr
    ent
    sit
    sof
    fi
    cespace.Mont
    hlyr
    ent
    alof$2,
    000i
    sdueat
    heendofeachmont
    h.Sunr
    ayCo.hasnoty
    etpai
    dit
    srentf
    ort
    hemont
    hofDecember31,
    20x1.

    Requi
    rement
    s:

    a.Pr
    epar
    ethey
    ear
    -endadj
    ust
    ingent
    ri
    es.

    b.Compl
    etet
    hewor
    ksheetbel
    ow.

    Adj
    ust
    ingent
    ri
    es

    1.Baddebt
    sexpense 1,
    000

    Al
    l
    owancef
    orbaddebt
    s 1,
    000

    2.Depr
    eci
    ati
    onexpense. 10,
    000

    Accumul
    ateddepr
    eci
    ati
    on. 10,
    000

    3.I
    nter
    estexpense 600

    I
    nter
    estpay
    abl
    e. 600

    4.Rentexpense. 2,
    000

    Rentpay
    abl
    e. 2,
    000
    Sunr
    ayCo.

    Wor
    kSheet

    December31,
    2x01

    Unadj
    ust
    edt
    ri
    al Adj
    ust
    ment Adj
    ust
    edt
    ri
    albal
    ance I
    ncomest
    atement Bal
    ancesheet
    bal
    ance

    Acount
    s Dr
    . Cr
    . Dr
    . Cr
    . Dr
    . Cr
    . Dr
    . Cr
    . Dr
    . Cr
    .

    Cash 60,
    000 60,
    000 60,
    000

    Acounts 50,
    000 50,
    000 50,
    000
    recei
    vabl
    e

    I
    nvent
    ory 40,
    000 40,
    000 40,
    000

    Equi
    pment 100,
    000 100,
    00 100,
    000

    Accumulated 10,
    000 10,
    000 20,
    000 20,
    000
    depreci
    ati
    on

    Accounts 5,
    000 5,
    000 5,
    000
    payabl
    e

    Notes 24,
    000 24,
    000 24,
    000
    pay
    able

    SunRay, 109,
    000 109,
    000 109,
    000
    Capi
    tal

    Ser
    vicef
    ees 220,
    000 220,
    00 220,
    000

    Salar
    ies 96,
    000 96,
    000 96,
    000
    expense

    Rentexpense 22,
    000 2,
    000 24,
    000 24,
    000
    Tot
    al 368,
    000 368,
    00

    Adj
    ust
    ment

    Baddebts 1,
    000 1,
    000 1,
    000 1,
    000
    expense

    All
    owanceof 1,
    000 1,
    000
    baddebts

    Depreci
    ati
    on 10,
    000 10,
    000 10,
    000
    expense

    Int
    erest 600 600 600
    expense

    I
    nterest 600 600 600
    payable

    Rentpay
    abl
    e 2,
    000 2,
    000 2,
    000

    Tot
    al 13,
    600 13,
    600 381,
    600 381,
    600 131,
    600 220,
    00 250,
    000 161,
    600

    88,
    400 88,
    400

    220,
    000 220,
    000 250,
    000 250,
    000

    Sor
    rypomaam kungmedy
    omagul
    ocppokasi
    gami
    tko

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