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    Accounting Worksheet

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    Jhanna Vee Damale
    Snoopy Enterprises prepares adjusting journal entries on December 31 to close its books for the year. Adjusting entries are needed for: 1) Estimated uncollectible accounts of P6,950 2) Prepaid rent of P100,000 for the year 3) Depreciation expense of P6,780 for transportation equipment

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    Accounting Worksheet

    Uploaded by

    Jhanna Vee Damale
    75 views5 pages
    Snoopy Enterprises prepares adjusting journal entries on December 31 to close its books for the year. Adjusting entries are needed for: 1) Estimated uncollectible accounts of P6,950 2) Prepaid rent of P100,000 for the year 3) Depreciation expense of P6,780 for transportation equipment

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    1st year

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    Accounting worksheet

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    Snoopy Enterprises prepares adjusting journal entries on December 31 to close its books for the year. Adjusting entries are needed for: 1) Estimated uncollectible accounts of P6,950 2) Prepaid rent of P100,000 for the year 3) Depreciation expense of P6,780 for transportation equipment

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views5 pages

    Accounting Worksheet

    Uploaded by

    Jhanna Vee Damale
    Snoopy Enterprises prepares adjusting journal entries on December 31 to close its books for the year. Adjusting entries are needed for: 1) Estimated uncollectible accounts of P6,950 2) Prepaid rent of P100,000 for the year 3) Depreciation expense of P6,780 for transportation equipment

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    EXERCISE 1

    SNOOPY ENTERPRISES PROVIDES COLLECTION SERVICES TO ITS


    CUSTOMERS. YEAR-END ADJUSTING JOURNAL ENTRIES ARE
    PREPARED EVERY DEC. 31 AS ITS BOOKS ARE CLOSED. MAKE THE
    APPROPRIATE ADJUSTING ENTRY FOR EACH OF THE FF ITEMS:
    1. UNCOLLECTIBLE ACCOUNTS AT YEAR-END IS ESTIMATED TO BE
    P6,950.
    2. RENT PAID LAST APRIL AMOUNTED TO P400,000,ONE FOURTH
    OF WHICH HAS ALREADY EXPIRED.THIS WAS INITIALLY
    RECORDED AS PREPAID RENT UPON PAYMENT.
    3. DEPRECIATION EXPENSE FOR ITS TRANSPORTATION
    EQUIPMENT,P6,780
    4. SUPPLIES PURCHASED DURING THE YEAR AMOUNTED TO
    P4,290,OF WHICH ONE- THIRD HAS BEEN USED DURING THE
    YEAR.
    5. UNPAID SALARIES OF ITS CLEANERS AS OF DECEMBER 31 IS P7,460.

    6. UNEARNED INTEREST HAS A BALANCE OF P3,120, OF WHICH P2,560


    HAS ALREADY BEEN EARNED DURING THE YEAR. THE AMOUNT WAS
    INITIALLY CREDITED TO UNEARNED INTEREST UPON COLLECTION.
    EXERCISE 2
    Bey Cleaners closes its books every December 31 and
    correspondingly prepares year-end adjusting entries. Make the
    appropriate adjusting entry for each of the ff. items:
    1. Last September 15, Bey Cleaners decided to sign the
    company for an eight –month advertising contract for a full
    blast advertising of all its products. The company received
    p780,000 for the contract and the accountant credited the
    amount to Unearned Advertising.
    2. Last August 30, the company subscribed to a business
    magazine paying P3,240 for a three-year subscription to
    start in September. This was recorded to Prepaid
    Subscription.
    3. Supplies account at the beginning of the year showed a
    balance of P10,800. No purchases were made during the
    year. Supplies used during the year amounted to P7,100.
    • 4. A Machine costing P950,000,WITH A SALVAGE VALUE
    OF P50,000 and an estimated useful life of 15 years is
    depreciated on a straight line basis
    • 5. Utilities bill amounting to P3,486 was received on
    Dec. 27. The company intends to pay it on January 5 the
    ff. year.
    • 6. Last May 1, the company decided to rent a garage as
    parking space of its company vehicles. Nine months rent
    was paid in advance in the amount of P81,000. The
    Asset Method was used to record this transaction.
    • 7. Last June 15, the company lent Angel Co. P90,000 at
    10% per annum.
    • 8. Last Nov. 1, the third floor of the company building was
    leased to Poseidon Enterprises. Bey Cleaners received
    P184,000 representing an 5-month lease contract. The
    Liability Method was used to record the receipt of
    payment.
    • 9. Doubtful accounts at the end of the year are estimated
    to be 4% of Accounts Receivable which has a balance of
    P275,000. Allowance for Doubtful Accounts has a credit
    balance of P9,700 per general ledger before adjustment.
    • 10. The company constructed its own building with total
    cost amounting to P22,000,000. The building has an
    estimated useful life of 25 years and a salvage value of
    P1,000,000. The building was completed last April 30 and
    depreciated started after its completion.

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