Answer the following using the Accrued income and Accrued expense. 1. A warehouse has been leased...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Answer the following using the Accrued income and Accrued expense. 1. A warehouse has been leased to Ohio Company for P50,000 per month beginning Jan. 1, 2015. The lease contract states that a 3% increase in the monthly rate will occur beginning Jan. 1, 2016. No payment has yet been received for the last quarter. 2. Lee Company is authorized to sell products with a 10% commission benefit. Sales made in December total P80,000 and the company has not received yet its commission. 3. Unpaid property taxes for the last quarter amounted to P15,000 4. Utility bills amounting to P5,000 remained unpaid as of December 31 5. Salaries earned by warehouse staff amounting to P12,000 remain unpaid as of December 31. 6. Insurance premium for the month of December amounting to P8,000 is not yet paid. 7. Nikon Company has an outstanding loan with HBC Bank amounting to P500,000. Interest of P10,000 has not yet been recorded. Prepaid Expense Method. Do the adjusting entry on December 31, 2021 1. On October 31 Mr Wong paid one year advance deposit for the office rent worth P120,000. Use Asset Method and the adjusted entry. 2. Paid 6 months magazine subscription which is P500 monthly. Answer the following using the Accrued income and Accrued expense. 1. A warehouse has been leased to Ohio Company for P50,000 per month beginning Jan. 1, 2015. The lease contract states that a 3% increase in the monthly rate will occur beginning Jan. 1, 2016. No payment has yet been received for the last quarter. 2. Lee Company is authorized to sell products with a 10% commission benefit. Sales made in December total P80,000 and the company has not received yet its commission. 3. Unpaid property taxes for the last quarter amounted to P15,000 4. Utility bills amounting to P5,000 remained unpaid as of December 31 5. Salaries earned by warehouse staff amounting to P12,000 remain unpaid as of December 31. 6. Insurance premium for the month of December amounting to P8,000 is not yet paid. 7. Nikon Company has an outstanding loan with HBC Bank amounting to P500,000. Interest of P10,000 has not yet been recorded. Prepaid Expense Method. Do the adjusting entry on December 31, 2021 1. On October 31 Mr Wong paid one year advance deposit for the office rent worth P120,000. Use Asset Method and the adjusted entry. 2. Paid 6 months magazine subscription which is P500 monthly.
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Accrued Income Debit Rent Income P50000 and Credit Accrued Income P50000 2 Accrued Expense Debit Accrued Expense P15000 and Credit Property Tax Expense P15000 3 Accrued Expense Debit Accrued ... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
The following adjusting entry for accrued wages was recorded on December 31: a. Journalize the reversing entry that would be made on January 1 of the next period. b. Assume that the first paid period...
-
A company makes an accrued revenue adjusting entry for $780 and an accrued expense adjusting entry for $510. How much was net income understated prior to these entries? Explain.
-
Accrued salaries owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended December 31. Indicate which items will be erroneously stated,...
-
public class Class extends ClassA public classB ( ( Time left 0 0 : 1 2 : 0 3 int init = 1 0 ; super ( 4 0 ) ; O a . . The method super is not defined. b . . No values may be passed to super. O c . ....
-
Discuss how the amortization of the discount or premium gets reported on the income statement and the balance sheet?
-
In many countries, religion has a dramatic effect on peoples attitudes, customs, and behavior. Lead students in a comparative discussion of the potential effects of the basic beliefs of the worlds...
-
It takes an electric field magnitude of about \(10^{6} \mathrm{~V} / \mathrm{m}\) to ionize atoms in the air and produce a spark. Is it possible to increase the magnetic field inside a long solenoid...
-
Product mix, special order. (N. Melumad, adapted) Pendleton Engineering makes cutting tools for metalworking operations. It makes two types of tools: R3, a regular cutting tool, and HP6, a...
-
How do you print the first value in a tuple called aVar?
-
The Vintage Restaurant is located on Captiva Island, a resort community near Fort Myers, Florida. The restaurant, which is owned and operated by Karen Payne, just completed its third year of...
-
Oxidation-Reduction Reactions The NADH dehydrogenase complex of the mitochondrial respira- tory chain promotes the following series of oxidation-reduction reactions, in which Fe+ and Fe+ represent...
-
What three functions does distributable net income serve in fiduciary taxation?
-
A client engagement letter should include all of the following except: a. the objective and scope of the audit. b. the expected form and content of the audit report. c. managements responsibilities....
-
Explain some tax avoidance techniques that could arise in regard to multiple trusts.
-
Explain when loss carryovers can be taken from a trust's federal income tax return and be used on the trust beneficiaries' individual income tax returns.
-
Illustrate the five dimensions of service quality for a service of your choice.
-
Given the financial information for Fox Company, what is the operating income for 2021, expressed as a percentage of sales revenue and rounded to one decimal place? Fox Company 2020 $10,250 8,000...
-
Wilsons Auto Repair ended 2011 with Accounts Receivable of $85,000 and a credit balance in Allowance for Uncollectible Accounts balance of $11,000. During 2012, Wilsons Auto Repair had the following...
-
The adjusted trial balance of Melanie O'Mallie Dance Studio Company follows: Requirements 1. Prepare the classified balance sheet of Melanie O'Mallie Dance Studio Company at August 31, 2018. Use the...
-
1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. 2. Journalize the October 16 purchase of merchandise inventory on account and the...
-
What does the accounts receivable turnover ratio measure and how is it calculated?
-
To what extent are the arguments for countries specialising and then trading with each other the same as those for individuals specialising in doing the jobs to which they are relatively well suited?
-
The following are four items that are traded internationally: wheat; computers; textiles; insurance. In which one of the four is each of the following most likely to have a comparative advantage:...
-
Debate the following: All arguments for restricting trade boil down to special pleading for particular interest groups. Ultimately there will be a net social cost from any trade restrictions.
Study smarter with the SolutionInn App