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ACCOUNTANCY! - The OFFICIAL THREAD -
- Thread starter thennek
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Thank you so much ma-am astrealey! I got it!
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SILENT po yung Problem kaya WE should consider the original entry as CORRECT and so we consider notes payable should debited. Ang pinapakita po ng problem given the data and journal entry na ibinigay, We can say na he is using EXPENSE METHOD.
Kaya ang problem nag sasabi kung paano ba natin i-aadjust ang INTEREST EXPENSE kasi yung 300 represents 12 months. Considering na nagsimula tayo by september 1, 2013. . . meaning sobra po yung 300 interest expense for dec. 2013 regardless of interest payable.
Parang Adjusting Entries for Basic Accounting na topic to. =)
Sa madaling salita ganito po ang buong entry nya.
Sept. 1 - Umutang po tayo. Gumamit xa ng EXPENSE METHOD.
Dr. Cash 3000
Dr. Interest Expense 300
Cr. Notes Payable 3300 (inclusive of interest payable right?
)#
Dec. 31, 2013 - Year End Adjustment tawag natin dito.
Dr. Notes Payable 200 <----hindi po yan payment, its just an adjustment
Cr. Interest Expense 200
why 200?
Kasi sobra po yung 300 interest expense. Dapat po 100 lang yung interest expense natin instead of 300.
300/12 months x 4months (sept. 1 - dec. 31, 2013) = 100 interest expense
-------------------------------------------------------------------------------
January - October 31, 2014
Adjusting entry is:
Dr. Interest Expense 200
Cr. Notes Payable 200
#
That is why, by September 1, 2014 ang notes payable natin is still 3,300 (Principal 3,000 + 300 interest payable) parin. Hope naliwanagan po kayo
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SILENT po yung Problem kaya WE should consider the original entry as CORRECT and so we consider notes payable should debited. Ang pinapakita po ng problem given the data and journal entry na ibinigay, We can say na he is using EXPENSE METHOD.
Kaya ang problem nag sasabi kung paano ba natin i-aadjust ang INTEREST EXPENSE kasi yung 300 represents 12 months. Considering na nagsimula tayo by september 1, 2013. . . meaning sobra po yung 300 interest expense for dec. 2013 regardless of interest payable.
Parang Adjusting Entries for Basic Accounting na topic to. =)
Sa madaling salita ganito po ang buong entry nya.
Sept. 1 - Umutang po tayo. Gumamit xa ng EXPENSE METHOD.
Dr. Cash 3000
Dr. Interest Expense 300
Cr. Notes Payable 3300 (inclusive of interest payable right?
#
Dec. 31, 2013 - Year End Adjustment tawag natin dito.
Dr. Notes Payable 200 <----hindi po yan payment, its just an adjustment
Cr. Interest Expense 200
why 200?
Kasi sobra po yung 300 interest expense. Dapat po 100 lang yung interest expense natin instead of 300.
300/12 months x 4months (sept. 1 - dec. 31, 2013) = 100 interest expense
-------------------------------------------------------------------------------
January - October 31, 2014
Adjusting entry is:
Dr. Interest Expense 200
Cr. Notes Payable 200
#
That is why, by September 1, 2014 ang notes payable natin is still 3,300 (Principal 3,000 + 300 interest payable) parin. Hope naliwanagan po kayo
Galing mo pre!!!!Nice solution!!!
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How do you Prepare the adjusting entry for each of the following for the year ending Dec. 31, 2013?
Preparing Adjusting Entries at Year-End
Prepare the adjusting entry under each of the following for the year-ending Dec. 31, 2013:
a. Paid P24, 000 for a 1-year fire insurance policy to commence on Sept. 1. The amount of premium was debited to Prepaid Insurance.
b. Borrowed P100, 000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1, 2013.
c. Paid P160, 000 cash to purchase a delivery van (surplus) on Jan. 1. The van was expected to have a 3-year life and a P10, 000 salvage value. Depreciation is computed on a straight-line basis.
d. Received an P18, 000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1.
e. Purchased P6, 400 of supplies on account. At year’s end, P750 of supplies remained on hand.
f. Invested P90, 000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May 1 and carried a 1-year term to maturity.
g. Paid P78, 000 cash in advance on Sept. 1 for a 1-year lease on office space.
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How do you Prepare the adjusting entry for each of the following for the year ending Dec. 31, 2013?
Preparing Adjusting Entries at Year-End
Prepare the adjusting entry under each of the following for the year-ending Dec. 31, 2013:
a. Paid P24, 000 for a 1-year fire insurance policy to commence on Sept. 1. The amount of premium was debited to Prepaid Insurance.
b. Borrowed P100, 000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1, 2013.
c. Paid P160, 000 cash to purchase a delivery van (surplus) on Jan. 1. The van was expected to have a 3-year life and a P10, 000 salvage value. Depreciation is computed on a straight-line basis.
d. Received an P18, 000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1.
e. Purchased P6, 400 of supplies on account. At year’s end, P750 of supplies remained on hand.
f. Invested P90, 000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May 1 and carried a 1-year term to maturity.
g. Paid P78, 000 cash in advance on Sept. 1 for a 1-year lease on office space.
How do you Prepare the adjusting entry for each of the following for the year ending Dec. 31, 2013?
Preparing Adjusting Entries at Year-End
Prepare the adjusting entry under each of the following for the year-ending Dec. 31, 2013:
a. Paid P24, 000 for a 1-year fire insurance policy to commence on Sept. 1. The amount of premium was debited to Prepaid Insurance.
He is using ASSET METHOD
Original Entry:
Dr. Prepaid Insurance 24,000 <---- Asset Account
Cr. Cash 24,000
Adjusting Entry:
Dr. Insurance Expense 8,000
Cr. Prepaid Insurance 8,000
(24,000 / 12 months * 4 months = 8,000)
Represents expense portion from sept. 1 to dec. 31
b. Borrowed P100, 000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1, 2013.
Original Entry:
Dr. Cash 100,000
Cr. Notes Payable 100,000
Adjusting Entry:
Dr. Interest Expense 1,750
Cr. Interest Payable 1750
(100,000 x 7% x 3months / 12 months = 1,750)
represents interest incurred from October 1 to Dec. 31
c. Paid P160, 000 cash to purchase a delivery van (surplus) on Jan. 1. The van was expected to have a 3-year life and a P10, 000 salvage value. Depreciation is computed on a straight-line basis.
Original Entry:
Dr. Transportation Equipment 160,000
Cr. Cash 160,000
Adjusting Entry:
Dr. Depreciation Expense 50,000
Cr. Accumulated Depreciation - Trans. Equip. 50,000
i.(Cost 160,000 - Salvage Value 10,000 = 150,000 Depreciable Amount)
ii. 150,000 / 3 years = 50,000 Depreciation Expense from Jan. 1 to Dec. 31.
d. Received an P18, 000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1.
Original Entry:
Dr. Cash 18,000
Cr. Unearned Service Income 18,000 <---- Liability Account
Adjusting Entry:
Dr. Unearned Service Income 13,500
Cr. Service Income 13,500
(18,000 x 9months / 12months = 13,500)
Represent consumed service income from April 1 to Dec 31)
e. Purchased P6, 400 of supplies on account. At year’s end, P750 of supplies remained on hand.
Original Entry:
Dr. Purchases 6,400
Cr. Accounts Payable 6,400
Adjusting Entry:
Dr. Cost of Goods Sold/ Cost of Sales 5,650
Cr. Purchases 5,650
(6,400 - 750 = 5,650 <---- eto po yung cost of inventory na naibenta na
f. Invested P90, 000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May 1 and carried a 1-year term to maturity.
Original Entry:
Dr. Investment 90,000 <---- this represent time deposit to bank
Cr. Cash 90,000
Adjusting Entry:
Dr. Investment 2,400
Cr. Investment Income/ Interest Income 2,400
(90,000 x 4% x 8months/ 12months = 2,400) represent interest earned on investment starting May 1 to Dec. 31
g. Paid P78, 000 cash in advance on Sept. 1 for a 1-year lease on office space.
Original Entry:
Dr. Prepaid Rent 78,000
Cr. Cash 78,000
Adjusting Entry:
Dr. Rent Expense 26,000
Cr. Prepaid Rent 26,000
(78,000 x 4 months/ 12 months) This represent expired portion of prepaid rent from Sept. 1 to dec. 31
Sana po naka tulong ako.
Pakia observe mo nalang yung entries kung bakit nga ba ganyan yung entries na ginawa.
I am open for any correction
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welcome
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feel free to ask question. try natin sagutin.
cash------------------------------ 45,000
notes receivable--------------- 360,000
account receivable------------ 156,000
office supplies -----------------63,000
land------------------------------ 300,000
building -------------------------1,590,000
accumulated depreciation building----- 254,000
equipment ----------------------2,150,000
accumulated depreciation equipment-----612,000
accounts payable-------------- 213,000
unearned consulting revenues--- 450,000
capital ----------------------------2,655,000
withdrawals ---------------------600,000
consulting revenues --------------2,108,000
salaries expense --------------875,000
repairs expense --------------116000
miscellaneous --------------expense 37,000
additional information (please post an adjusting entries)
a. office supplies on hand as at dec 31,2013 is 21,000
b.one third the unearned revenues has been earned as at dec.31,2013
c.depreciation for the year amounted to 38,000 for the building and 123,000 for the equipment
d.salaries in the amount of 14,000 have accrued at year end.
e. the notes receivable were accepted from several customers, the notes were issued on sept. 1,2013 & will settled together with a 20% interest on may 31,2014.
pa help bossing. salamat
notes receivable--------------- 360,000
account receivable------------ 156,000
office supplies -----------------63,000
land------------------------------ 300,000
building -------------------------1,590,000
accumulated depreciation building----- 254,000
equipment ----------------------2,150,000
accumulated depreciation equipment-----612,000
accounts payable-------------- 213,000
unearned consulting revenues--- 450,000
capital ----------------------------2,655,000
withdrawals ---------------------600,000
consulting revenues --------------2,108,000
salaries expense --------------875,000
repairs expense --------------116000
miscellaneous --------------expense 37,000
additional information (please post an adjusting entries)
a. office supplies on hand as at dec 31,2013 is 21,000
b.one third the unearned revenues has been earned as at dec.31,2013
c.depreciation for the year amounted to 38,000 for the building and 123,000 for the equipment
d.salaries in the amount of 14,000 have accrued at year end.
e. the notes receivable were accepted from several customers, the notes were issued on sept. 1,2013 & will settled together with a 20% interest on may 31,2014.
pa help bossing. salamat
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cash------------------------------ 45,000
notes receivable--------------- 360,000
account receivable------------ 156,000
office supplies -----------------63,000
land------------------------------ 300,000
building -------------------------1,590,000
accumulated depreciation building----- 254,000
equipment ----------------------2,150,000
accumulated depreciation equipment-----612,000
accounts payable-------------- 213,000
unearned consulting revenues--- 450,000
capital ----------------------------2,655,000
withdrawals ---------------------600,000
consulting revenues --------------2,108,000
salaries expense --------------875,000
repairs expense --------------116000
miscellaneous --------------expense 37,000
additional information (please post an adjusting entries)
a. office supplies on hand as at dec 31,2013 is 21,000
Dr. Office Supplies Expense 42,000
Cr. Office Supplies 42,000
#
(63,000 - 21,000 = 42,000 Expense Portion of Supplies)
Yung Ending Balance ng Office Supplies mo ay dapat 21,000.
Ayan pinalitan ko na. hehe
b.one third the unearned revenues has been earned as at dec.31,2013
Dr. Unearned Consultative Revenues 150,000 <----liability account
Cr. Consultative Revenues 150,000 <----- Income Account
#
(unearned consulting revenues--- 450,000 x 1/3 = 150,000 Earned portion of consultative revenue)
c.depreciation for the year amounted to 38,000 for the building and 123,000 for the equipment
Dr. Depreciation Expense 161,000
Cr. accumulated depreciation building 38,000
Cr. accumulated depreciation equipment 123,000
#
d.salaries in the amount of 14,000 have accrued at year end.
Dr. Salaries Expense 14,000
Cr. Accounts Payable/ Payroll Payable 14,000
#
e. the notes receivable were accepted from several customers, the notes were issued on sept. 1,2013 & will settled together with a 20% interest on may 31,2014.
Dr. Notes Receivable 32,000
Cr. Interest Income on Notes Receivable 32,000
#
Principal Notes Receivable 360,000 x 20% x 4/9 = 32,000 Interest Income.
4 = represents months from Sept. 1 to Dec. 31.
9 = represents months from Sept. 1 to May 2014
pa help bossing. salamat
Keep Studying
notes receivable--------------- 360,000
account receivable------------ 156,000
office supplies -----------------63,000
land------------------------------ 300,000
building -------------------------1,590,000
accumulated depreciation building----- 254,000
equipment ----------------------2,150,000
accumulated depreciation equipment-----612,000
accounts payable-------------- 213,000
unearned consulting revenues--- 450,000
capital ----------------------------2,655,000
withdrawals ---------------------600,000
consulting revenues --------------2,108,000
salaries expense --------------875,000
repairs expense --------------116000
miscellaneous --------------expense 37,000
additional information (please post an adjusting entries)
a. office supplies on hand as at dec 31,2013 is 21,000
Dr. Office Supplies Expense 42,000
Cr. Office Supplies 42,000
#
(63,000 - 21,000 = 42,000 Expense Portion of Supplies)
Yung Ending Balance ng Office Supplies mo ay dapat 21,000.
Ayan pinalitan ko na. hehe
b.one third the unearned revenues has been earned as at dec.31,2013
Dr. Unearned Consultative Revenues 150,000 <----liability account
Cr. Consultative Revenues 150,000 <----- Income Account
#
(unearned consulting revenues--- 450,000 x 1/3 = 150,000 Earned portion of consultative revenue)
c.depreciation for the year amounted to 38,000 for the building and 123,000 for the equipment
Dr. Depreciation Expense 161,000
Cr. accumulated depreciation building 38,000
Cr. accumulated depreciation equipment 123,000
#
d.salaries in the amount of 14,000 have accrued at year end.
Dr. Salaries Expense 14,000
Cr. Accounts Payable/ Payroll Payable 14,000
#
e. the notes receivable were accepted from several customers, the notes were issued on sept. 1,2013 & will settled together with a 20% interest on may 31,2014.
Dr. Notes Receivable 32,000
Cr. Interest Income on Notes Receivable 32,000
#
Principal Notes Receivable 360,000 x 20% x 4/9 = 32,000 Interest Income.
4 = represents months from Sept. 1 to Dec. 31.
9 = represents months from Sept. 1 to May 2014
pa help bossing. salamat
Keep Studying
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As you can see the problem data tells us na he is using ASSET METHOD.
OOPS. PASENSYA NA PO DI KO NAPALITAN YUNG AMOUNT. HEHE MY BAD.
42,000 PO PALAIf gagamit po tayo ng Asset Method. Ganito po lagi entry natin.
Example:
Dr. Office Supplies 50,000xxxx<------- Asset Account/ Balance Sheet Account
Cr. Cash 50,000
To record purchase of office supplies.
#
At the end of the year po ang owner po ay gagawa ng inventory count. Example po, yung nabilang nila na natirang imbentaryo ay 20,000. Meaning po 30,000 po ang naging expense nya (50,000-20,000).
Dito na po tayo gagawa ng Adjusting Journal Entry.
So Dapat po ang Office Supplies Account ay may balanse na 20,000 kasi yan yung Actual na nabilang natin.
Eto na po ang Adjusting Entry Natin.
Dr. Office Supplies Expense 30,000 <---------Income Statement Account
Cr. Office Supplies 30,000 <--------Balance Sheet Account.
#
Apply mo po eto sa problem na binigay.
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Wala po akong solman.
Financial Accounting - Valix bili ka Practical Accounting 1 Reviewer
Theory of Accounts - Valix and Bili ka rin reviewer na Theory of Accounts
Business Law & Taxation - Bili kana nalang ng reviewer, paulitx2 lang naman mga questions jan. No need to worry.
MAS - Agamata text book + Reviewer Agamata
Audit Theory - Salosagcol reviewer.
Audit Problem - Pwede n ayung kay Roque pero Sabayan mo ng Financial Accounting Text book as referrence.
Advance Accounting - Gamit ka DAYADAY or Guerrero.
Kung gusto mo mag top rank, hingi ka ng mga review materials sa mga kailala mong nag rereview na ngayon. Doon ka mag practice
Financial Accounting - Valix bili ka Practical Accounting 1 Reviewer
Theory of Accounts - Valix and Bili ka rin reviewer na Theory of Accounts
Business Law & Taxation - Bili kana nalang ng reviewer, paulitx2 lang naman mga questions jan. No need to worry.
MAS - Agamata text book + Reviewer Agamata
Audit Theory - Salosagcol reviewer.
Audit Problem - Pwede n ayung kay Roque pero Sabayan mo ng Financial Accounting Text book as referrence.
Advance Accounting - Gamit ka DAYADAY or Guerrero.
Kung gusto mo mag top rank, hingi ka ng mga review materials sa mga kailala mong nag rereview na ngayon. Doon ka mag practice
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