Name:______________________________ November 6, 2023
ACPLUS – Assignment
Prepare the adjusting entry for Ms. Christine Gamba under each of the following for the year ending December 31, 2022(Accounting
Period). (Instruction: Print this activity and write your complete adjusting entries on the spaces provided in the second column.
Strictly no erasures on the entries. (45 Points)
Transactions Adjusting Entries (complete entry)
1. The Supplies account showed a beginning
balance of P16,150 and purchases during the
year of P37,660. The year-end inventory
revealed supplies on hand od P11,860.
2. A review of insurance policies showed that
P6,800 is unexpired at the year-end. If the
business has a prepaid insurance of P34,000.
3. The business has a cleaning supplies of
P34,000. At year-end an inventory of cleaning
supplies showed P12,440 on hand.
4. Accrued interest on the mortgage payable is
P10,000. The mortgage payable of business is
P1,100,000.
5. Paid P24,000 for a 3-year fire insurance policy
to commence on September 1. The amount of
premium was debited to Prepaid Insurance.
6. Paid P36,000 for a 2-year fire insurance policy
to commence on August 31. The amount of
premium was debited to Insurance Expense.
7. Borrowed P100,000 by issuing a 1- year note
with 7% annual interest to China bank on October
1, 2023.
8. Paid P160,000 cash to purchase a delivery van
on March 31, The van was expected to have 3 –
year life and a P10,000 salvage value.
Depreciation is computed on a straight line basis.
9. Received an advanced collection from
customers for P100,000 on April 1 of the current
year. The amount received is credited to
Unearned Service Income.
10. Received an advanced collection from
customers for P120,000 on November 1 of the
current year. The amount is credited to Service
Income.
11. Paid P78,000 cash in advance on July 1 of the
current year for a 1-year lease on office space.
The amount was debited to Prepaid Rent.
12. Among the liabilities of the entity is a
P2,400,000 mortgage payable. On June 30, the
accrued interest on this mortgage amounted to
P120,000.
13. Unpaid salaries of employees, P25,000.
14. The business has an outstanding accounts
receivable of P95,000. Based on their past
experience, the provision for estimate of
uncollectible accounts is 3.5%.
15. Acquired an equipment of P250,000 with no
salvage value and the useful life is 5 years on
June 1, 2022.
End of the activity!
