Answer the multiple choice

What is the adjusting ent 271 Adjusting Entries 00,000, one-year, note from PROBLEM 6: MULTIPLE CHOICE th the principal and interey Entity A obtained a 12%, P100,000, one-year loan on October 1, te. What is the adjusting en 20x1. On October 1, 20x2, Entity A paid the lender P112,000, amounts to two decimal places) representing settlement of both the principal and interest on the loan. The P12,000 total interest should be recognized as 00, one-year, note payable interest expense a. in 20x1. c. partly in 20x1 and partly in 20x2. a calendar year period b. in 20x2. d. Not recognized as expense note are due on May 1, 20 December 31, 20x1? 2. The instance described in #1 above is an application of which of the following accounting concepts? obile charges and internet for a. Accrual c. Matching Ox1 totalling P13,000. Prior t b. Time period d. a and b cord the receipt of the billing 3. Which of the following is a correct sequence of steps in the accounting cycle? acquires a pickup truck to a. Identifying, Journalizing, Posting, Adjusting entries, stimated useful life of 5 years Unadjusted trial balance December 31, 20x1 to take b. Journalizing, Identifying, Posting, Adjusting entries, Unadjusted trial balance c. Identifying, Journalizing, Posting, Unadjusted trial balance, Adjusting entries ance as of December 31, 24 d. Step 1, Step 2, Step 3... and so on. 34,000. The year-end physt nused supplies amounting 4. The purpose of adjusting entries is II. to take up unrecorded income and expense for the period. try? to split mixed accounts into their real and nominal ance as of December 31, 2 III. elements. 34,000. The year-end phys to transfer financial data from the journal to the ledger. nused supplies amountin a. Ionly b. I, II, and III c. I and II d. II and III Itry? 5. ance as of December 31, Adjusting entries are usually made 340,000 and no allowand a. every day, including Sundays and Holidays. that 3% of the accounts adjusting entry?Rainsting Entries 273 VL Unearned rent income 220,000 VII Notes payable 500,000 ove Which of these would least likely require a year-end adjustment? a. IV, VI and VII c. I and III med b b. II, IV, VI and VII d. all these require adjustments of eau PROBLEM 7: MULTIPLE CHOICE 1. Entity A's total expenses for 20x1 were $239,000 before possible adjustment for the following: i. Salaries already earned by employees but not yet paid, $22,000 ii. Entity A acquired a machine for $100,000 three years ago. The machine has a useful life of 10 years. No depreciation ini. has yet been recognized in the current year. Of the total accounts receivable balance of P120,000, 5% is of collection. The relatedural entry to record the I under each of the follow thod Adjusting Entries 269 usting entries on December's rods listed above. 6. Your business has accounts receivable of P300,000. You estimated that out of that amount, 10% is doubtful of collection and needs to be charged to expense, What is the adjusting entry to record the doubtful accounts? ING ENTRIES 7. Your business is renting out properties. On June 1, 20x1, your calendar year accounting business receives one-year advanced rent of $360,000 from one of your tenants. The advanced rent covers the months of June your transactions during the joe 1, 20x1 to May 31, 20x2. Requirements: ved a 14%, P400,000, one year a. Provide the journal entry to record the collection on June 1, 20x1 under each of the following methods: 20x1. Both the principal and s i. Liability method maturity date. What is the athis ii. Income method