Reference no: EM132792152

Problem 1 - The September 30 trial balance of Sagittarius Corp. shows the following information:

Accounts receivable 4,030 Equipment 21,060

Accounts payable 3,185 Other expense 2,470

Accumulated depreciation 10,530

Owner's drawings 2,730

Advertising expense 195 Owner's equity 14,300

Cash 3,770 Service Revenues 6,240

Depreciation expense of P351 is not yet recorded.

REQUIREMENT -

1. Prepare the needed adjusting entry for depreciation.

2. Prepare the closing entries.

3. Prepare a properly arranged post-closing trial balance.

Problem 2 - For the year ended December 31, 2019, P600,000 of wages expense was reported in the income statement of ABC Enterprises. The previous year's statement of financial position reported P125,000 of wages payable. An analysis of the payroll record showed wages payments during the year 2019 of P575,000. The previous year's adjusting entry for the unpaid wages was reversed on January 1, 2019.

Required -

A. Prepare the reversing entry on January 1, 2019.

B. Prepare the entry for the payment of wages during the year.

C. Prepare the adjusting entry for accrued wages payable on December 31, 2019.