Reference no: EM132796151
Preparing Adjusting Entries at Year-End
The Virgin Rivers Illustrators presented the following information pertaining to accounts that will need adjustments for its Nov, 30, 2020 year-end financial statements:
1) On Oct 1, 2020, Virgin rivers Illustrators paid PIO,800 for 6-months' insurance premiums.
2) Acquired office supplies on June 1 amounted to P32,000. A count of the office supplies on Nov. 30, 2020 totaled P12,800. No other acquisition of supplies has been made since.
3) Virgin Rivers Illustrators received P22,800 on Nov. 1, 2020 from a customer for services to be rendered during the months of November, December, January, and February.
4) V. Rivers acquired Office Equipment costing P352,800 on Apr, 1, 2020. The equipment is expected to last 5 years after which it will be worthless.
5) Assume that Nov, 30, 2020 is a Friday and that Virgin Rivers pays its employees a total of P87,500 on Saturday.
Required:
Problem a) Prepare the opening journal entries for items 1-4
Problem b) Prepare the Dec. 1, 2020 entry to record the payment of the salaries for item 5
Problem c) Prepare the adjusting entries.
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