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  • Adjusting Entries

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    Yusra Pangandaman
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    1. Several adjusting entries are needed at the end of the period for various prepaid, accrued, and depreciation items. These include prepaid insurance, interest expense on a note payable, depreciation on a delivery van, unearned revenue on a service contract, supplies inventory, interest income on a certificate of deposit, prepaid rent, accrued interest on a mortgage, accrued salaries, earned revenue on an incomplete contract, prepaid advertising, supplies inventory, depreciation expense on equipment, earned revenue, accrued salaries, accrued interest expense, supplies inventory, earned revenue, depreciation expense on buildings and equipment, accrued salaries, notes receivable with interest, medical supplies inventory, de

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    1. Several adjusting entries are needed at the end of the period for various prepaid, accrued, and depreciation items. These include prepaid insurance, interest expense on a note payable, depreciation on a delivery van, unearned revenue on a service contract, supplies inventory, interest income on a certificate of deposit, prepaid rent, accrued interest on a mortgage, accrued salaries, earned revenue on an incomplete contract, prepaid advertising, supplies inventory, depreciation expense on equipment, earned revenue, accrued salaries, accrued interest expense, supplies inventory, earned revenue, depreciation expense on buildings and equipment, accrued salaries, notes receivable with interest, medical supplies inventory, de

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views8 pages

    Adjusting Entries

    Uploaded by

    Yusra Pangandaman
    1. Several adjusting entries are needed at the end of the period for various prepaid, accrued, and depreciation items. These include prepaid insurance, interest expense on a note payable, depreciation on a delivery van, unearned revenue on a service contract, supplies inventory, interest income on a certificate of deposit, prepaid rent, accrued interest on a mortgage, accrued salaries, earned revenue on an incomplete contract, prepaid advertising, supplies inventory, depreciation expense on equipment, earned revenue, accrued salaries, accrued interest expense, supplies inventory, earned revenue, depreciation expense on buildings and equipment, accrued salaries, notes receivable with interest, medical supplies inventory, de

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Adjusting Entries:

    1. Paid 24,000 for 1 year fire insurance policy to commence on September 1. The premium amount
    was debited to Prepaid Insurance.

    2. Borrowed 100,000 by issuing a 1 year note with 7% annual interest to Century Saving Bank on
    October 1, 2022.

    3. Paid 160,000 cash to purchase a delivery van on Jan. 1. The van was expected to have a 3 year
    life and a 10,000 salvage value. Depreciation is computed on a straight line basis.

    4. Received an 18,000 cash advance for a contract to provide services in the future. The contract
    required a 1 year commitment, starting April 1.

    5. Purchased 6,400 of supplies on account. At year’s end, 750 of supplies remained on hand.

    6. Invested 90,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was
    acquired on May 1 and carried 1-year term to maturity.

    7. Paid 78,000 cash in advance on September 1 for a 1 year lease on office space.
    8. Among the liabilities of the entity, 2,400,000 mortgage payable. On June 30, the accrued interest
    on this mortgage amounted to 120,000.

    9. Assume that on July 2, a Friday, the entity which is on a five day workweek and pays employee
    weekly, paid kts regular salaried employees 192,000.

    10. The entity calculated that as at June 30, it had earned 35,000 on a 75,000 contract that will be
    completed and billed in August.

    11. The P360,000 prepaid advertising represents expenditure made on Nov. 1, 2021 for monthly
    advertising over the next 18 months.

    12. count of the engineering supplies at May 31, 2022 amounted to P90,000.

    13. Depreciation on the surveying equipment amounted to P160,000.

    14. One-third of the unearned survey revenues has been earned at year-end.

    15. At year-end, salaries in the amount of P140,000 have accrued.

    16. Interest of P60,000 on the notes payable has accrued at year-end.


    17. Office supplies on hand as at Dec. 31, 2022 is P21,000.

    18. One-third of the unearned revenues has been earned as at Dec. 31, 2022.

    19. Depreciation for the year amounted to P38,000 for the building and P123,000 for the equipment.

    20. Salaries in the amount of P14,000 have accrued at year-end.

    21. The notes receivable was accepted from several customers. The notes were issued on Sept. 1,
    2022 and will be settled together with a 20% interest on May 31, 2023.

    22. Medical supplies on hand at month-end amounted to P21,000.

    23. Depreciation on the medical building and on the medical equipment is P5,000 and P9,000,
    respectively.

    24. Unearned research revenues in the amount of P30,000 have been earned. e. Salaries of P51,000
    have accrued.
    25. Interest on the 20% and 24% notes are P20,000 and P8,000, respectively.

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