Reference no: EM132736719
Question: Identify the type of adjusting entry that will be used. Make an adjusting entries for each listed item.
Civilization is an upscale university housing complex providing all the amenities of private townhouse living and a full service 24-hour cafeteria for busy students. Prior to recording any adjusting entries for 20X4, Civilizations has incurred and recorded a total salary expense of P875,000 and a total revenue of P4,800,000
As a December 31, 20X4 the company owes P15,000 of additional salaries to employees, and accrued rent due from residents amounts to P100,000
On January 10, 20X5, Civilizations received rental payments for P250,000 covering the rent due as of December 31, 20X4 and additional amounts relating to the first half of January, 20X5
On January 15, 20X5, Civilizations paid salaries of P40,000 covering the amount due as December 31, as well as additional amounts relating to 20X5.
a. Prepare the necessary year-end adjusting entries for salaries and rent
b. Determine the total salaries expense and total revenue for 20X4
c. Assuming the company uses reversing entries, prepare the necessary reversals for early 20X5
d. Assuming the company used reversing entries, prepare entries for January 10 and 15, 20X5
e. Assuming the company does not use reversing entries, prepare entries for January 10 and 15, 20X5
f. Show how 20X5 salaries expense and rent revenue will be the same, whether reversing entries are used or not
Identify the type of adjusting entry that will be used. Make an adjusting entries for each listed item.
Civilization is an upscale university housing complex providing all the amenities of private townhouse living and a full service 24-hour cafeteria for busy students. Prior to recording any adjusting entries for 20X4, Civilizations has incurred and recorded a total salary expense of P875,000 and a total revenue of P4,800,000
As a December 31, 20X4 the company owes P15,000 of additional salaries to employees, and accrued rent due from residents amounts to P100,000
On January 10, 20X5, Civilizations received rental payments for P250,000 covering the rent due as of December 31, 20X4 and additional amounts relating to the first half of January, 20X5
On January 15, 20X5, Civilizations paid salaries of P40,000 covering the amount due as December 31, as well as additional amounts relating to 20X5.
a. Prepare the necessary year-end adjusting entries for salaries and rent
b. Determine the total salaries expense and total revenue for 20X4
c. Assuming the company uses reversing entries, prepare the necessary reversals for early 20X5
d. Assuming the company used reversing entries, prepare entries for January 10 and 15, 20X5
e. Assuming the company does not use reversing entries, prepare entries for January 10 and 15, 20X5
f. Show how 20X5 salaries expense and rent revenue will be the same, whether reversing entries are used or not