Completing the Accounting Cycle | 7-17 NAMI SECTION: problem #2 Adjusting Entries three 2014 transactions of the Rowena Carpio Company are described below: April 1 Carpio paid the Eveh lyn Ferraris Equipments P36,000 in advance to rent cer rtain equipment over the next 12 months. July 1 A check in the amount of P72,000 was received from Alabang Consultants for professional services to be rendered over the next 24 months, Required: 1, Prepare the adjusting entries assuming that the transactions were initially recorded in balance sheet accounts. . Prepare the adjusting entries assuming that the transactions were initially recorded in income statement accounts. Also, record the Jan. 1, 2015 reversing entries, if any.18 | Basle Accounting i RAME: : PROFESSOR: | : | } | | { ‘SCORE: ‘SECTION: Problem #3 Preparing the Closing Entries Listed below are the accounts taken from the Dec. 31, 2014 adjusted trial balance oy Aristotle Go Publishers: Accounts Receivable P 260,000 . Interest Payable P 40,000 Supplies Expense 710,000 Cash 160,000 Salaries Expense 2,270,000 Repairs Expense 10,000 Printing Revenues 8,130,000 Accounts Payable 190,000 Prepaid Insurance 320,000 Telephone Expense 20,000 Depreciation Expense 250,000 Utilities Expense 80,000 Supplies 160,000 Unearned Printing Revenues 210,000 Salaries Payable 310,000 Interest Expense 300,000 Printing Equipment 5,520,000 Go, Capital 340,000 Prepaid Advertising 70,000 Notes Payable oor 2,500,000 Go, Withdrawals 1,500,000 Miscellaneous Expense 90,000 Required: Prepare the closing entries,1 Completing the Accounting cycle_|_7-2. NAME: SECTION: SCORE: PROFESSOR: problem #6 preparing the Reversing Entries me of the adjusting entrie: . | werent d below: of the Warlito Blanche Company on Dec. 31, 2014 is mt pec. 31 Prepaid Insu rence 25,000 Insurance Expense ; 25,000 To od unexpired insurance at year- ent 31 _Interest Receivable 17,000 Interest Income 17,000 To record accrued interest at year-end. 31 Office Supplies Expense 50,000 Office Supplies 50,000 To record office supplies used during the period. 31 Depreciation Expense 125,000 ‘Accumulated Depreciation : 125,000 To record depreciation for the year. 31 Salaries Expense 35,000 Salaries Payable To record salaries accrued at year-end. 35,000 80,000 31 —_Rent Revenues Unearned Rent Revenues To record liability of unearned rent revenue at year-end. 80,000 Required: Prepare the reversing entries.722 Bsc Accu (NAME: SECTION: Problem #7 Comprehensive Problem is practi , 2014. The transacti Edgar Detoya, tax consultant, began his practice on Dec. 2 ions of the firm are as follows: Dec. 1 Detoya invested P150,000 in the firm. 2 Paid rent for December to Recoletos Realty, 2 Purchased supplies on account, P7,200. 3 Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days. 8 Paid 7,200 on account for supplies purchased. 14 Paid assistant’s salaries for two weeks, P6,000. 20 Performed consulting services for cash, P20,000. 28 Paid assistant’s salaries for two weeks, P6,000. 30 Billed clients for December consulting services, P48,000. 31 Detoya withdrew P12,000 from the business. 8,000. Required: 1. Open the following general ledger accounts, using the account numbers shown; Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salzries Payable (220); Detoya, Capital (310); Detoya, Withdrawals (320); Income Summary (330); Consulting Reveriues (410); Salaries Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540). 2. Journalize the December transactions and post to the ledger. 3. Prepare and complete the worksheet using the following information: Supplies on hand at Dec. 31 amounted to P4,700. Salaries of P1,800 have accrued at month-end, Depreciation is P800 for December. Detoya has spent 20 houts on a tax fraud case during December. When completed in January, his work will be billed at P500 per hour. Note: The firm uses the account Fees Receivable to reflect the amounts earned but not yet billed, aooe 4. Prepare an income statement, a statement of changes in equity; a batance sheet anda statement of cash flows. i . 5. Journalize and post adjusting and closing entries, 6. Prepare a post-closing trial balance. 7. Journalize and post the reversing entries.