Reference no: EM132982772

Activity 1 - Solve the following problems:

1. A commission income account in the trial balance at the end of the year showed a balance of Php12,000.1/5 of the amount is already earned.

a. What type of adjustment is used?

b. What is the year end adjusting entry?

2. A prepaid rent account amounting to Php600,000 was shown in the trial balance on December 31, 2018. Accordingly, the account is good for one year and was paid on May 1, 2013.

a. What is the amount of the adjustment?

b. What is the adjusting entry?

3. An unearned subscription of Php360,000 was credited when it was received on April 1, 2020 good for one year.

a. How much is the balance of uneared subscription at the end of December 31, 2019?

b. What is the amount of the adjustment?

4. Gloria Dimasalang acquired Office Equipment costing P352,800 on April 1, 2019. The equipment is expected to last 5 years father which it will be worthless.

a. How much is the balance of unearned subscription at the end of December 31, 2019?

b. What is the amount of the adjustment?

Activity 2 - Prepare the adjusting entries.

1. Quirk Company purchased office supplies costing P6,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed P2,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be?

2. Hardy Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, what should be the adjusting journal entry?

3. Baden Realty Company received a check for P18,000 on July which represents a 6-month advance payment of rent of a building it rents to a client. Unearned Rent was credited for the full P18,000. Financial statements will prepared on July 31. Give the adjusting journal entry Baden Realty Company should make.

4. At December 31, 2018, before any year-end adjustments, Karr Company Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $3,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be?

5. Manning Corporation issued a one-year, 9%, P200,000 note on April 30, 2018. Interest Expense for the year ended December 31, 2018 was?