Prepayments

On September 1, 2022, ABM Co. paid a one-

year advance rent for ₱ 30,000. Give the
Adjusting Journal Entry on December 31,
2022.
On September 1, 2022, ABM Co. paid a one-
year advance rent for ₱ 30,000. Give the
Adjusting Journal Entry on December 31,
2022.
Asset Method
Sept. 1, 2022 Prepaid Rent ₱ 30,000
Cash ₱ 30,000
To record advance payment
for rent.
On September 1, 2022, ABM Co. paid a one-year
advance rent for ₱ 30,000. Give the Adjusting Journal
Entry on December 31, 2022.
Asset Method
Sept. 1, 2022 Prepaid Rent ₱ 30,000
Cash ₱ 30,000
To record advance payment
for rent.
Adjusting Journal Entry
Dec. 31, 2022 Rent Expense ₱ 10,000
Prepaid Rent ₱ 10,000
To record expired prepaid rent
On September 1, 2022, ABM Co. paid a one-
year advance rent for ₱ 30,000. Give the
Adjusting Journal Entry on December 31,
2022.
Expense Method
Sept. 1, 2022 Rent Expense ₱ 30,000
Cash ₱ 30,000
To record advance payment
for rent.
On September 1, 2022, ABM Co. paid a one-year
advance rent for ₱ 30,000. Give the Adjusting Journal
Entry on December 31, 2022.
Expense Method
Sept. 1, 2022 Rent Expense ₱ 30,000
Cash ₱ 30,000
To record advance payment
for rent.
Adjusting Journal Entry
Dec. 31, 2022 Prepaid Rent ₱ 20,000
Rent Expense ₱ 20,000
To record prepaid rent
Deferrals
On September 1, 2022, HUMMS Co.
received a one-year advance rent
for ₱ 30,000. Give the Adjusting
Journal Entry on December 31,
2022
On September 1, 2022, HUMMS Co. received a one-
year advance rent for ₱ 30,000. Give the Adjusting
Journal Entry on December 31, 2022.

Liability Method
Sept. 1, 2022 Cash ₱ 30,000
Unearned Rent Income ₱ 30,000
To record advance collection
for rent.
On September 1, 2022, HUMMS Co. received a one-
year advance rent for ₱ 30,000. Give the Adjusting
Journal Entry on December 31, 2022.
Liability Method
Sept. 1, 2022 Cash ₱ 30,000
Unearned Rent Income ₱ 30,000
To record advance collection
for rent.
Adjusting Journal Entry
Dec. 31, 2022 Unearned Rent Income ₱ 10,000
Rent Income ₱ 10,000
To record earned rent income
On September 1, 2022, HUMMS Co. received a one-
year advance rent for ₱ 30,000. Give the Adjusting
Journal Entry on December 31, 2022.

Income Method
Sept. 1, 2022 Cash ₱ 30,000
Rent Income ₱ 30,000
To record advance collection
for rent.
On September 1, 2022, HUMMS Co. received a one-
year advance rent for ₱ 30,000. Give the Adjusting
Journal Entry on December 31, 2022.
Income Method
Sept. 1, 2022 Cash ₱ 30,000
Rent Income ₱ 30,000
To record advance collection
for rent.
Adjusting Journal Entry
Dec. 31, 2022 Rent Income ₱ 20,000
Unearned Rent Income ₱ 20,000
To record unearned rent income
On April 30, 2022, STEM Co. paid
36,000 worth of insurance premium
for two years. The business uses the
asset method in recording
prepayments. Give the Adjusting
Journal Entry on December 31, 2022.
On April 30, 2022, STEM Co. paid 36,000 worth of insurance
premium for two years. The business uses the asset method in
recording prepayments. Give the Adjusting Journal Entry on
December 31, 2022.

Apr. 30 Prepaid Insurance 36,000

Cash 36,000
To record payment for
2 years insurance premium.

Adjusting Journal Entry

Dec. 31 Insurance Expense 12,000
Prepaid Insurance 12,000
to record insurance
expense for the period.
On July 31, 2022, TVL Co. paid 66,000
worth of rent for two years. The
business uses the expense method in
recording prepayments. Give the
Adjusting Journal Entry on December
31, 2022.
On July 31, 2022, TVL Co. paid 66,000 worth of rent for
two years. The business uses the expense method in
recording prepayments. Give the Adjusting Journal Entry
on December 31, 2022.
July 31 Rent Expense 66,000
Cash 66,000
to record 2 years advance
payment for rent.

Dec. 31 Prepaid Rent 52,250

Rent Expense 52,250
to recognize prepaid rent
on rent paid for 2 years.
Supplies account on January 1, 2022,
showed a balance of ₱18,000. On
December 31, 2022, supplies on hand
amounted to ₱ 7,500. Give the
adjusting journal entry on December
31, 2022.
Supplies account on January 1, 2022, showed a balance of
₱18,000. On December 31, 2022, supplies on hand amounted to
₱ 7,500. Give the adjusting journal entry on December 31, 2022.

Adjusting Journal Entry

Dec. 31 Supplies Expense 10,500

Supplies 10,500
To record supplies used
for the period.
On August 1, Dr. Yee received 90,000
for dental fees to be rendered in the
next 6 months. The business uses the
liability method in recording deferrals.
Give the adjusting journal entry at the
end of September.
On August 1, Dr. Yee received 90,000 for dental fees to be
rendered in the next 6 months. The business uses the liability
method in recording deferrals. Give the adjusting journal entry at
the end of September.

Aug. 1 Cash 90,000

Unearned Dental Fees 90,000
to record dental fees received
in advance.

Sept. 30 Unearned Dental Fees 30,000

Dental Fees 30,000
To record income earned from
advance dental fees received on August 1.
On December 1, 2022, Petit Co.
received 48,000 of advanced rentals
for 6 months. The company uses
income method in recording deferrals.
Give the Adjusting entry on December
31, 2022.
On December 1, 2022, Petit Co. received 48,000 of advanced
rentals for 6 months. The company uses income method in
recording deferrals. Give the Adjusting entry on December 31,
2022.

Dec. 1 Cash 48,000

Rent Income 48,000
To record rentals received
in advance for 6 months

Dec. 31 Rent Income 40,000

Unearned Rent Income 40,000
To record unearned income from
rentals received in advance.