Date

Dec-01

Dec-05

Dec-07

Dec-10
Dec-15
Dec-19
Dec-23

Additional Information
1

3
4

7
Transaction
Dondoyano purchased an equipment, costing P150,000 which is to be depreciated
into the useful life of asset of 5 years. This is the only purchases made in the year.
Billed the client amounting to P40,000 and recorded the same representing
an advance payment for consultation, at the end of the year this amount was fully
earned, which is not yet adjusted.
Purchase an office supplies on account of P20,000, in which P12,000 is fully
consumed at the end of the year.
 Paid the salaries of the staff amounting to P65,000 which include P35,000 13 payth

Dondoyano
Paid P27,000withdraw P100,00
for an office forwhich
repair, personal use.consumed at the end of the year
is fully

Paid salaries
the next of the
payroll willstaff amounting
be paid on 10thto
ofP30,000. December
January the 23year.
following is Wednesday,
The company in

accruing payroll follow the month days method regardless of weekdays or weekend.
Additional Information
Depreciation of building is 20 years with estimated salvage value of P50,000. 
70% of total unearned revenue was already earned as of year-end and no recording of adjustment
in the books.
The office supplies inventory for the year amounted to P15,000 it does not include the December
7 office supplies purchases recorded in the books
Is it estimated that Land market value at year end is P350,000
The company received on January 5, the billing from advertisement contract from DZXY
amounting to P30,000 for the period December 6 to January 5, which is not yet paid as of year
end.

The notes receivable were accepted from four customers during the year with schedule as follows:
The company policy accrued interest within the month if date of issuance is below 15th day of the
month, if not interest will be accrued the following month.

Customer Name Amount of Notes Issue Date/Issuance Date/Settlement Int. Rate

Biboy Ismael P100,000 Aug 23,2021 May 23,2021 10%
Karen Sason P140,000 Oct 8,2021 Jan 8,2021 5%
Erika Metral P120,000 Dec 28,2021 April 30,2021 12%

At the end of the month, unpaid utilities were noted, the company paid the electricity
consumption from January 1 to December 15, 2020. The company used the average method of
computing its utilities expense. 60% Utilities expense is recorded under miscellaneous expense.
Adjustment Reason for adjustment Amount
Yes Depreciation expense 2,500

Yes Recording of earned revenue 40,000

Yes Recording of Supplies Expense 12,000

No
No
No
Yes Salaries Expense 16,000

Yes Depreciation expense 77,000

Yes Earned Revenue 275,000

Yes Supplies Expense 28,000

No

Yes Recognition of advertising expense 25,161.29

Yes Recognition of accrued Interest 5,083.00

Yes Recording of Utilities expense 965.26

Debit Credit
Depreciation Expense Accumulated Depreciation- Equip

Unearned Consulting Revenue Consultation Revenue

Office Supplies Expense Supplies Expense

Salaries Expense Salaries Payable

Depreciation Expense Accumulated Depreciation- Bldg.

Unearned Consulting Revenue Consulting Revenue

OfficeSupplies Expense Supplies Expense

Advertising Expense Advertising Payable

Interest Receivable Interest Revenue

Utilities Expense Utilities Payable

 Cash Notes Receivable Accounts Receivable Office Supplies
45,000 360,000 156,000 63,000

Equipment Accumulated Depreciation- Equip Accounts Payable Unearned Consulting R

2,150,000 612,000 213,000
2,500 40,000
315,000

Salaries Expense Repairs Expense Miscelleneous Expense Depreciation Expense

875,000 116,000 37,000 2,500
16,000 28,000
891,000 30,500

Salaries Payable Advertising Expense Interest Receivable Interest Revenue

16,000 25,161,29 5,083
 Office Supplies Land Building Accumulated Depreciation- Bldg.
300,000 1,590,000 254,000
77,000
331,000

Unearned Consulting Revenue Dondoyano, Capital Dondoyano, Withdrawals Consulting Revenue

450,000 2,655,000 2,108,000 2,108,000
315,000
2,423,000
95,000

Depreciation Expense Consultation Revenue Office Supplies Expense Suuplies Expense

40,000 12,000 12,000
28,000 28,000
40,000 40,000

Interest Revenue Utilities Expense Advertising Payable Utilities Payable

5,083 965.26 25,161.29 965.26
ted Depreciation- Bldg.
Date Transaction Adjustment Reason for adjustment

At year end, unrecorded interest expense due to

creditors was Rs. 4,000 (payable in the next year). Recording of interest
Prepare the adjusting entry at year end (12/31): Yes expense

Prepaid Insurance account began the year with a

balance of Rs. 230. During the year, insurance in the
amount of Rs. 570 was purchased. At the end of the year
March 31st, 2009 the amount of insurance still
unexpired was Rs. 350. Prepare the year end adjusting Recording of Insurance
entry: Yes Expense

Wages are paid every Saturday for a five day work week
(Mon – Fri; two days are unpaid and free). Wages are Rs.
2,000 per week. Prepare the adjusting entry on June 30, Recording of salaries
assuming July 1 falls on a Wednesday: Yes expense

At year end, unrecorded interest receivable from the

Government bonds is Rs. 1,700. Prepare the adjusting Recoding of Interest
entry Yes Receivable

On July 3, a deposit in the amount of Rs. 5,000 was

received for services to be performed. By the end of the
month, services in the amount of Rs. 1,200 were
performed. Prepare journal entries for the original
receipt of the deposit and the adjusting entry on Recording of unearned
31st July: Yes service revenue

On October 4, Smith Company rendered services valued

at Rs. 11,000. The client will pay for the services
November 1 and closing are done at the end of each Recording of accounts
month pass this transaction at the end of period: Yes receivable

The Supplies asset account began the year with a

balance of Rs. 190. During the year, supplies in the
amount of Rs. 490 were purchased. At the end of the
year the inventory of supplies on hand was Rs. 220. Recording of supplies
Prepare the year end adjusting entry: Yes expense

The depreciation expense on office equipment for the

month of March is Rs. 50. This is the second month that
the office Equipment, which cost Rs. 950, has been
owned. Prepare the adjusting entry for March and show
the adjustment using written down method (WDM) for
depreciation recording. Yes Depreciation Expense

Bad Debts during the year were Rs.  1,500. Pass journal
entry by using direct write off method for bad debt
treatment. Yes Recording of bad debts
During the year 2000, XYZ Company identified Rs. 16,000
of uncollectible Accounts receivable and wrote them
off.  Prepare the journal entry for XYZ Company to write
off Rs. 16,000 of uncollectible Accounts receivable. Yes Recording of bad debts

Prepare the journal entry for XYZ Company to estimates

Rs. 17,000 of Bad debt expense for the year 2017 by
using allowance method for bad debt treatment. Yes Recording of bad debts

Prepare the journal entries for ABC Company to record

cash collections was Rs. 900 that represented collections
of Accounts receivable that had previously been written Recording of accounts
off. Yes receivable
Depreciation on the company’s machinery is computed
to be Rs.16,000 by cost method Yes Depreciation Expense

The prepaid Insurance account had a Rs. 9,000 debit

balance at December 31, 2010, before adjusting for the
costs of any expired coverage. An analysis of the
company’s insurance policies showed that Rs. 3,000 of Recording of Insurance
unexpired insurance coverage remains Yes Expense

The office supplies account had Rs. 600 debit balance on

January 1, 2010; and Rs. 2,600 of the supplies was
purchased during the year. The December 31, 2010, Recording of supplies
physical count showed Rs. 500 of the supplies available Yes expense

One half of the work related to Rs. 10,000 received in Recording of Unearned
advance was performed during the period Yes revenue
Interest expenses of Rs.3,500 have been incurred but are Recorsing of Interest
not paid as of December 31, 2010 Yes expense

On December 31, of the current year, a company’s

unadjusted trial balance revealed the following:
Accounts receivable of Rs. 185,600; and Allowance for
Doubtful Accounts of Rs. 1,600 (credit balance). Prepare
the adjusting journal entry to record the estimate for
bad debts, assuming 6% of the accounts receivable
balance is assumed to be uncollectible Yes Recording of dad debts
Salaries earned by club’s employees that have not yet Recording of salaries
been recorded or paid amount to Rs. 17,500 Yes expense

Membership dues earned in December, for collections Recording of unearned

received in January, amount to Rs. 80,000 Yes membership des

Depreciation of the country club’s equipment is based

on an estimated life of 10 years by WDM.  The
equipments had originally been purchased for Rs.
180,000.  The straight-line method is used Yes Depreciation Expense
A 12-month bank loan in the amount of Rs. 50,000 had
been obtained by the country club on October 1. 
Interest is computed at an annual rate of 12%.  The
entire Rs. 50,000, plus all of the interest accrued over
the 12-month life of the loan, is due in full on September
30 of the upcoming year.  The necessary adjusting entry
was made on November 30 to record the first two
months of accrued interest expense.  However, no
adjustment has been made to record interest expense Recording of accrued
accrued in December Yes expense

A one-year property insurance policy had been

purchased on March 31.  The entire premium of Rs. Recording of unexpired
2,400 was initially recorded as Unexpired Insurance Yes insurance

Unrecorded Income Taxes Expense accrued in December

amounts to Rs. 1,700.  This amount will not be paid until Recording of income tax
January 15 Yes expense
Amount Debit Credit

4,000 Interest Expense Interest Payable

450 Insurance Expense Prepaid Insurance

800 Salaries Expense Salaries Payable

1,700 Interest Receivable Interest

Unearned service
1,200 revenue Service Revenue

11,000 Accounts Receivable Service Revenue

460 Supplies Expense Prepaid Suuplies 680

Accumulated Depreciation-
50 Depreciation Expense Equip 220

1,500 Bad Debt Expense Allowance for Bad debt

 16,000 Bad Debt Expense Allowance for Bad debt

17,000 Bad debt Expense Allowance for Bad debt

900 Accounts Receivable Allowance for Bad debt

Accumulated Depreciation-
16,000 Depreciation Expense Equip

6,000 Insurance Expense Prepaid Insurance

2,700 Office Supplies expense Prepaid Office Supplies 3,200 500

Unearned service
5,000 revenue Service Revenue

3,500 Interest Expense Interest Payab;e

111,360 Bad Debt Expense Allowance for Bad debt 11,136

17,500 Salaries Expense Salaries Payable

Unearned membership
80,000 dues Membership dues

Accumulated Depreciation-
18,000 Depreciation Expense Equip
8,433 Interest Expense Interest Payable

2,400 Prepaid Insurance Insurance Expense

1,700 Income tax expense Income tax payable