Dec 31 Interest Expense 4,000 Interest Payable 4,000
Dec 31 Interest Expense 4,000 Interest Payable 4,000
Dec 31 Interest Expense 4,000 Interest Payable 4,000
ADRIANO, Glecy
Problem #1: At year end, unrecorded interest expense due to creditors was ₱ 4,000 (payable in the next year).
Prepare the adjusting entry at year end (12/31)
Adjusting Entry
Amount
Date Account Title and Explanations Ref
Debit Credit
Dec 31 Interest Expense 4,000
Interest Payable 4,000
Problem #2: Prepaid Insurance account began the year with a balance of ₱ 230. During the year, insurance in the amount
of ₱ 570 was purchased. At the end of the year March 31 st, 2019 the amount of insurance still unexpired was ₱350.
Prepare the year end adjusting entry
Adjusting Entry
Amount
Date Account Title and Explanations Ref
Debit Credit
2019
March 31 Insurance Expense 450
Prepaid Insurance 450
Problem # 3: Wages are paid every Saturday for a five day work week (Mon – Fri; two days are unpaid and free).
Wages are ₱ 2,000 per week. Prepare the adjusting entry on June 30, assuming July 1 falls on a Wednesday
Adjusting Entry
Amount (Rs)
Date Account Title and Explanations Ref
Debit Credit
Wages Expense 800
Wages Payable 800
Problem #4: At year end, unrecorded interest receivable from the Government bonds is ₱ 1,700. Prepare the adjusting
entry
Adjusting Entry
Amount
Date Account Title and Explanations Ref
Debit Credit
Problem #5: On July 3, a deposit in the amount of ₱ 5,000 was received for services to be performed. By the end of the
month, services in the amount of ₱ 1,200 were performed. Prepare journal entries for the original receipt of the deposit
and the adjusting entry on 31st July.
Adjusting Entry
Amount
Account Title and
Date
Explanations
Problem #6: On October 4, Smith Company rendered services valued at ₱ 11,000. The client will pay for the services
November 1 and closing are done at the end of each month pass this transaction at the end of period
Adjusting Entry
Account Title and Amount
Date Ref
Explanations Debit Credit
31 Accounts Receivable 11,000
Services 11,000
Problem #7: The Supplies asset account began the year with a balance of ₱ 190. During the year, supplies in the amount
of ₱ 490 were purchased. At the end of the year the inventory of supplies on hand was ₱ 220. Prepare the year end
adjusting entry
Adjusting Entry
Amount
Date Account Title and Explanations Ref
Debit Credit
Supplies Expense 460
Supplies Assets 460