advanced 1 DOCX

Title	advanced 1
Author	Charles Ferrer
File Size	194 KB
File Type	DOCX
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University of Luzon College of Accountancy Adjusting Entries Problem 1 The following given data, prepare adjusting journal entries for the year ended December 31, 2012. 1. Of the P5,300 office supplies inventory, P1,250 costs of supplies were on hand. Answer: Office Supplies Expense 4,050 Office Supplies (5,300 – 1,250) 4,050 # 2. Paid insurance premium on Oct. 1, 2012 amounting to P4,800 for a 2-year policy contract. Expense account was debited upon payment. Answer: Prepaid Insurance 4,200 Insurance expense (4,800 x 21/24) 4, 200 # 3. Salaries from the period Dec. 27, 2012 to Jan. 3, 2013 at P225/day were unpaid. Answer: Salaries expense 1,125 Salaries Payable (225 x 5) 1,125 # 4. Of the recorded interest income account of P5,000, P3,000 was unearned at the end of the period. Answer: Interest Income 3,000 Unearned Interest Income 3,000 # 5. Purchase of supplies for P3,000. At the end of the year, P1,000 costs of supplies were actually used. Expense method was used in payment of supplies. Answer: Supplies 2, 000 Supplies Expense (3,000 – 1,000) 2, 000 #...