Quiz4 - QUIZ PDF

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NAME: Date: Professor: Section: Score: Entity A has equipment with a historical cost of 1,00₱ 0,000. The equipment was estimated to have a 10-year useful life when it was acquired four years ago. What is the adjusting entry to take up the annual depreciation expense on December 31, 20x1? Equipment c...

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NAME: Pr of e s s or :

Se c t i on:

Da t e: Sc or e:

1. Entity A has equipment with a historical cost of ₱ 1,000,000. The equipment was estimated to have a 10-year useful life when it was acquired four years ago. What is the adjusting entry to take up the annual depreciation expense on December 31, 20x1?

2. Equipment costing PHP 588,000.00 has a useful life of five years with PHP 80,000.00 salvage value. Compute the depreciation for the year and prepare adjusting entry to record the depreciation.

3. Office Equipment was purchased on March 1, 2018 for PHP 270,000.00. The expected life of the equipment is eight years. Compute and prepare adjusting entry for Dec 31, 2018.

4. As of December 31, before adjustment, the following are the balances of some accounts: Accounts Receivable PHP Allowance for uncollectible accounts Credit Sales Required: Adjusting entry assuming: a. 1% of Accounts Receivable is uncollectible

500,000.00 2,000.00 900,000.00

b. 1% of credit sales 5. Entity A has total accounts receivable of ₱ 640,000 on December 31, 20x1. Of that amount, ₱ 70,000 is doubtful of collection. What is the adjusting entry to take up the uncollectible accounts expense on December 31, 20x1? 6. Entity A received a 12%,₱ 200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. What is the adjusting entry to take up accrued interest income on December 31, 20x1? 7. Entity A is renting out its building to a tenant for a monthly rent of ₱ 30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1?

8 . Entity A issued a 12%,₱ 500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1?...