ADJUSTING JOURNAL ENTRY – Answer the following questions and show your solutions.

1. On December 25, 2023, Aldous Vulcanizing Shop rendered 50,000.00 worth of services to a client. However, the amount has not yet been collected.
It was agreed that the customer will pay the amount on January 9, 2024. The transaction was not recorded in the books of Aldous Vulcanizing Shop.
The accounting period ends on December 31, 2023.
a) What is the Adjusting Journal Entry on December 31, 2023?
b) What is the Journal Entry upon payment on January 9, 2024?

2) Nana Company rented a space at Lianga Market Mall for 80,000.00 per month payable every 8th day of the following month. The rental for the
month of December 2023 will be paid on January 8, 2024. The accounting period ends on December 31, 2023.
a) What is the Adjusting Journal Entry on December 31, 2023?
b) What is the Journal Entry upon payment on January 8, 2024?

3) On May 1, 2023, Vexana Company collected the amount of 300,000.00 representing an advance rental from Franco, a tenant who occupies a space
of the building. The advanced rental will cover the period from May 1, 2023 to May 1, 2024. The accounting period ends on December 31, 2023.
Assuming that Income Method is used:
a) What is the journal entry to record the pre-collection of income on May 1, 2023?
b) What is the adjusting entry on December 31, 2023?
c) In your adjusting entry, are you increasing or decreasing the amount of your Rent Income account?

4) On August 1, 2023, Zilong Corporation insured its property with Ling Insurance Company and pays premium of 60,000.00 for a one-year policy
contract covering the period from August 1, 2023 to August 1, 2024. The accounting period ends on December 31, 2023. Assuming that Expense
Method is used:
a) What is the journal entry to record the pre-payment of expense on August 1, 2023?
b) What is the adjusting entry on December 31, 2023?
c) In your adjusting entry, are you increasing or decreasing the amount of your Insurance Expense account?

5) The following Accounts Receivable data is taken from Karrie Store for the year December 31, 2023 before adjustment was prepared:
1-60 days 61-120 days
Customer A 25,000.00
Customer B 30,000.00
Customer C 10,000.00

Based on experience, the uncollectibility rate of accounts for 1-60 days is 5% and for 61-120 days is 8%.
a) How much is the Doubtful Accounts Expense as per aging made?
b) What is the Adjusting Journal Entry on December 31, 2023?
c) What is the Net Realizable Value as of December 31, 2023?

6. On March 1, 2023, Balmond Commercial purchased equipment unit for office use costing 200,000.00. The estimated useful life is 6 years with a
residual value of 20,000.00.
a. How much is the annual depreciation?
b. What is the Adjusting Journal Entry on December 31, 2023?
c. What is the Carrying Value as of December 31, 2023?