Reference no: EM132728952
Question - ABC CORP is preparing its 2019 4th quarter financial statements (3 month period ends December 31, 2019). Assume the adjusting entry is posted at the end of each quarter. The following is information related to PT ABC transactions in 2019:
PT ABC has bank loans of Rp 10 billion since the end of 2018. Level loan coupon interest is 12% (no discount or premium). Flower paid every July 1 and January 1.
PT ABC provided consulting services to PT Q in December 2019. Services consultation has been completed according to the contract as of December 30, 2019. Billing for consulting services of IDR 50 million carried out in the first week of January 2020. PT ABC has not yet recognized revenue from these consulting services in 2019.
PT ABC purchased office equipment worth IDR 120 million in the fourth quarter of 2019 (purchases have been recorded in assets). Starting balance of office supplies (as of October 1 2019) is IDR 10 million. Based on the results of physical examination of equipment balances office at the end of 2019 worth IDR 30 million.
PT ABC purchased office furniture for IDR 170 million in early July of the current year. Office furniture is depreciated using the straight-line method with its useful life 4 years and a residual value of IDR 10 million.
On November 1, 2019 PT ABC received a down payment of IDR 120 million (100% value agreement) for consulting services to be provided for 3 months from 1 December 2019 with a total of 30 hours of consultation hours (cash receipt and revenue recording received in advance has been done on 1 Nov 2019) every month for 3 months. PT ABC will provide consulting services for 10 hours in 2019. PT ABC has provide consulting services for December according to the agreement.
Instructions - Make PT ABC keep an adjusting journal for the quarterly financial statements 4th ended December 31, 2019.