Reference no: EM132984746
Question: Presented below is the year-end unadjusted trial balance of Luz Trucking Services Adjustment information is likewise presented below.
Luzon Trucking Services
Trial Balance
December 31, 2016
Debit Credit
Cash P 325.000
Accounts Receivable 105,000
Notes Receivable 60,000
Prepaid Insurance 15,000
Office Supplies 30,000
Trucks 1,300,000
Accounts Payable 50.000
Unearned Rent 30,000
Dale, Capital 1,600,000
Dale, Drawing 25,000
Trucking Revenue 375.000
Salaries Expense 80,000
Rent Expense 70,000
Utilities Expense 10,000
Gas and Oil 35,000
P2,055,000 P2,055,000
Adjustments:
a) Prepaid Insurance represents the insurance premiums paid last Nov 1 for the trucks' two year insurance coverage.
b) Office supplies on hand at the end of the year amounted to P5,000
c) The trucks were acquired last Nov 1. Their estimated useful life is 10 years with P100,000 salvage value
d) Unearned rent represents 15 months rent received in advance last October 15, 2016,
e) A 10% P60,000 90 day note was received last December 1, 2016. No interest was received on this note as to date.
f) Office employees are paid weekly every Saturday, December 31 falls on a Tuesday, Four employees with P250 daily pay reported to work that week.
Required: Journalize the adjusting journal entries and prepare the worksheet.