Prepare adjusting journal entry of the following. 1) On August 1, 2020, the company Dr. Reyn subscribed
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1) On August 1, 2020, the company Dr. Reyn subscribed to a business magazine paying, P24,000 for a two-year subscription. This was recorded to Prepaid Subscription. 2) 3) Office Equipment costing, P200,000, with a salvage value of P20,000 and an estimated useful life of 10 years, is depreciated on a straight line basis. 4) Unpaid salaries of its employees as of December 31, 2020, P25,000. 5) Uncollected interest on promissory note as of December 31, 2020, P10,000. Doubtful accounts at the end of the year are estimated to be 5% of Accounts Receivable which has a balance of P120,000. 1) On August 1, 2020, the company Dr. Reyn subscribed to a business magazine paying, P24,000 for a two-year subscription. This was recorded to Prepaid Subscription. 2) 3) Office Equipment costing, P200,000, with a salvage value of P20,000 and an estimated useful life of 10 years, is depreciated on a straight line basis. 4) Unpaid salaries of its employees as of December 31, 2020, P25,000. 5) Uncollected interest on promissory note as of December 31, 2020, P10,000. Doubtful accounts at the end of the year are estimated to be 5% of Accounts Receivable which has a balance of P120,000.
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Journal entries Date Accounts Description Debit Credit December 31 Prepaid Subscription Recognize su... View the full answer
Related Book For
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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