ANALYSIS

USING
T-ACCOUNTS
Review on Selected Accounting
Topics
ANALYSIS USING T-ACCOUNTS

Each adjusting entry affects a balance sheet account (an asset or a liability account) and
an income statement account (an income or an expense account).
For example:
+ Rent expense is related to prepaid rent
+ Supplies expense to supplies
+ Service revenues to unearned service revenues
+ Salaries expense to salaries payable
+ Interest income to interest receivable
 PREPAID EXPENS E/S UPPLIES (AS S ET)
Beg. Bal. xx xx Expens ed portion of prepaid expens e/s upplies cons umed
Cas h payments for prepaid expens e/s upplies xx xx End. Bal.

Total debit XX XX Total credit

 PREPAID EXPENSE/SUPPLIES (AS SET)
Beg. Bal. Expens ed portion of prepaid expens e/s upplies cons umed
Cas h payments for prepaid expens e/s upplies End. Bal.

Total debit Total credit

The income statement for the Seulgi Company showed rent expense of
P1,030,000. The related balance sheet account balances at year end
2022 and 2023 are as follows:
December 31, 2023 December 31, 2022
Prepaid rent P450,000 P560,000

Determine the amount of cash payments related to prepaid rent for

2023.
 PREPAID EXPENSE/SUPPLIES (AS SET)
Beg. Bal. Expens ed portion of prepaid expens e/s upplies cons umed
Cas h payments for prepaid expens e/s upplies End. Bal.

Total debit Total credit

The adjusted trial balance of Yeri Company as at December

31, 2022 and November 30, 2022 include these amounts:
December 31, 2022 November 30, 2022
Supplies P21,000 P15,000

Analysis of accounts revealed that the total supplies purchased for

December is P84,000. Compute the amount of supplies expense to be
reported on the December 31, 2022 income statement.
 UNEARNED S ERVICE REVENUES (LIABILITY)
Income earned portion of unearned s ervice revenues xx xx Beg. Bal.
End. Bal. xx xx Cas h received in advance for s ervice revenues

Total debit xx xx Total credit

 UNEARNED S ERVICE REVENUES (LIABILITY)
Income earned portion of unearned s ervice revenues Beg. Bal.
End. Bal. Cas h received in advance for s ervice revenues

Total debit Total credit

The adjusted trial balance of Hoshi Company as at December

31, 2022 and November 30, 2022 include these amounts:
December 31, 2022 November 30, 2022
Unearned revenues P142,000 P163,000

Analysis of accounts revealed that the cash received in advance for service
revenues for December is P1,800,200. Compute the amount of service
revenues to be reported on the December 31, 2022 income statement.
 ACCRUED LIABILITIES
P ayment of accrued liabilities xx xx Beg. Bal.
End. Bal. xx xx Expens e related to accrued liabilities

Total debit xx xx Total credit

 ACCRUED LIABILITIES
P ayme nt of a cc rue d lia bilitie s Be g. Ba l.
End. Ba l. Expe ns e re la te d to a c crue d lia bilitie s

Tota l de bit Total c re dit

The following amounts are taken from the records of Wonwoo

Company:
December 31, 2022 November 30, 2022
Accrued liabilities P440,000 P375,000

During December, expenses related to accrued liabilities were

P305,000. Compute the amount of cash payments related to
accrued liabilities.
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