1. Entity A received a 10%, P200,000, one-year, note receivable on July 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on July 1, 20x2. What is the adjusting entry on December 31, 20x1? 

2. Entity A issued a 12%, P200,000, one-year, note payable on November 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on November 1, 20x2. What is the adjusting entry on December 31, 20x1? 

3. Your business is renting a space.

The monthly rental is P120,000. On December 31, 20x1, the rent for the months of November and December 20x1 are not yet paid. What is the adjusting entry? 

4. A business receives its electricity bill for the period amounting to P6,000. What is the entry to record the receipt of the bill prior to its payment? 

5. On January 1, 20x1, your business acquires a computer equipment for P120,000. You expect to use the computer over the next 3 years. What is the adjusting entry on December 31, 20x1 to take up depreciation expense? 

6. Your business has accounts receivable of P300,000. You estimated that out of that amount, 10% is doubtful of collection. What is the adjusting entry to record the doubtful accounts? 

7. Your business is renting out properties. On June 1, 20x1, your business receives one-year advanced rent of P360,000 from one of your tenants. The advanced rent covers the months of June 1, 20x1 to May 31, 20x2.

Requirements: 

a. Provide the journal entry to record the collection on June 1, 20x1 under each of the following methods: 

          i. Liability method 

          ii. Income method 

b. Provide the adjusting entries on December 31, 20x1 under each of the methods listed above. 

8. Your business pays one-year insurance of P360,000 on November 1, 20x1. 

Requirements: 

a. Provide the journal entry to record the prepayment on November 1, 20x1 under each of the following methods: 

          i. Asset method 

          ii. Expense method '

b. Provide the adjusting entries on December 31, 20x1 under each of the methods listed above.

 

PROBLEM 3: ADJUSTING ENTRIES:

1. Entity A received an 8%, P100,000, one-year, note receivable on September 1, 20x1. Entity A uses a calendar year period, The principal and interest on the note are due on September 1, 20x2. What is the adjusting entry on December 31, 20x1? (Round-off amounts to two decimal places.) 

2. Entity A issued a 12%, P350,000, one-year, note payable on May 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on May 1, 20x2. What is the adjusting entry on December 31, 20x1? 

3. A tenant is renting a space in the building of Entity A. The monthly rental is P120,000. On December 31, 20x1, the tenant has not yet paid the rent for the months of November and December 20x1 are not yet paid?

Answer rating: 100% (QA)

Problem 1 Entity As Note Receivable Date Account Debit P Credit P July 1 20x1 Note Receivable 200000 July 1 20x1 Interest Revenue 10 10000 Adjusting E... View the full answer