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The document outlines various financial transactions and adjustments for a company, including employee wages, client promissory notes, office supplies usage, and insurance expenses. It also details accumulated depreciation, machinery purchases, consulting revenue adjustments, advance payments, and estimated uncollectible accounts. Additionally, it discusses the necessary adjusting entries based on the percentage of receivables for uncollectible accounts.

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KuYã Noks Gaming
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29 views1 page

12

The document outlines various financial transactions and adjustments for a company, including employee wages, client promissory notes, office supplies usage, and insurance expenses. It also details accumulated depreciation, machinery purchases, consulting revenue adjustments, advance payments, and estimated uncollectible accounts. Additionally, it discusses the necessary adjusting entries based on the percentage of receivables for uncollectible accounts.

Uploaded by

KuYã Noks Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.The company pays its employees weekly for a 6-days work. Wages per day totaled to P64,200.

No
wages have been paid or recorded from December 29-January 3.

2. A client issued a promissory note of P30,000 with an interest of 8% on July 1, 2023. Accrued interest
was not yet recorded at year end.

3. Office Supplies has a beginning balance of P12,300. During the year, P44,800 was purchased and
P35,450 were used.

4. Insurance Expense was debited when the company paid an 18-month insurance policy for P81,000 on
May 1, 2023.

5. The accumulated depreciation in the Unadjusted Trial Balance amounted to P300,000. The related
equipment for this accumulated depreciation was purchased on January 1, 2019.

6. Machineries of P150,000 was purchased April 31,2023 with a salvage value of a P30,000 and a useful
life of 8 years.

7. The Consulting Revenue recorded in the Unadjusted Trial Balance includes an advance payment of
P45,000 from a customer. Of this amount, only P30,000 has been earned during the period.

8. The company uses a real account method when recording deferrals. On November 1, 2023, it received
an advance payment from a client amounting to P48,000 for a one-year service contract.

9. The company estimated that 5% of its revenue is uncollectible. The unadjusted trial balance showed a
debit balance for accounts receivable of P300,000, a credit balance for allowance for doubtful accounts
of P10,000 and a credit balance for Revenue of P500,000.

10. Using the same information in number 9, what will be the adjusting entry if the company uses the
percentage of receivable, and assuming that uncollectible accounts are 6% of Accounts Receivable.

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