CAMANTE, JAMES G

BSAC 1-2
ASSIGNMENT - ACCTNG 1100
CHAPTER 8 - PROBLEM 3 1
December 31, 20x1 Interest expense ₱ 31,500.00
Interest payable
to accrue interest expene incurred but not yet paid
2
December 31, 20x1 Utilities expense ₱ 32,000.00
Utilities payable
to accrue unpaid utilities
3
December 31, 20x1 Rent expense ₱ 22,000.00
Rent payable
to accrue unpaid rent
4
December 31, 20x1 Rent receivable ₱ 8,000.00
Rent income
to accrue rent income
5
December 31, 20x1 Bad debts expense ₱ 20,000.00
Allowance for bad debts
to record the bad ebts expense for the period
6
December 31, 20x1 Depreciation expense ₱ 500,000.00
Accumulated depreciation
to record the depreciation expense for the period
7
Requirement a Liability Method
Nov. 1, 20x1
Cash ₱ 720,000.00
Unearned income
to record the receipt of advanced royalty income
Requirement b Liability Method
Dec. 31, 20x1
Unearned income ₱ 560,000.00
Royalty income
to recognise the earned portion of the advanced royalt
8
Requirement a Liability Method
Oct. 1, 20x1
 Prepaid insurance ₱ 360,000.00
Cash
to record the prepayment of 1-year insu
Requirement b Liability Method
Dec. 31, 20x1
Insurance expense ₱ 60,000.00
Prepaid insurance
to recognise the expired portion of the 1-year insuranc
 ₱ 31,500.00
urred but not yet paid

₱ 32,000.00

₱ 22,000.00

₱ 8,000.00

₱ 20,000.00
se for the period

₱ 500,000.00
pense for the period

Method Income Method

Nov. 1, 20x1
Cash ₱ 720,000.00
₱ 720,000.00 Royalty income ₱ 720,000.00
nced royalty income to record the receipt of advanced royalty income
Method Income Method
Dec. 31, 20x1
Royalty income ₱ 160,000.00
₱ 560,000.00 Unearned income ₱ 160,000.00
on of the advanced royaltto recognise the unearned portion of the advanced royalt

Method Income Method

Oct. 1, 20x1
 Insurance expense ₱ 360,000.00
₱ 360,000.00 Cash ₱ 360,000.00
to record the prepayment of 1-year insura
Method Income Method
Dec. 31, 20x1
Prepaid insurance ₱ 300,000.00
₱ 60,000.00 Insurance expense ₱ 300,000.00
tion of the 1-year insuranc to recognise the expired portion of the 1-year insurance