PREPARING JOURNAL ENTRIES
PROBLEM 1
Prepare Journal Entries made on the date of the transactions and adjusting
entries for the year ending December 31, 2018 under each of the following independent
cases:
1. On November 1, 2018, paid P360,000 for six months rent of the office building
commencing on December 1, 2018. Asset Method was used.
2. Office supplies on hand at December 31, 2018 amounted to P30,000. Such office
supplies was purchased on June 1, 2018 on account amounting P100,000.
Expense Method was used.
3. A desktop computer was purchased on March 31, 2018 on account for P35,000
with an estimated useful life of five years and a salvage value of P5,000
4. A review of the P34,000 insurance premium which was paid on October 1, 2018
showed thatP6,800 is expired at the year end. Expense Method was used.
5. The office space being rented is so big and so one fourth of such office space
was advertised for rent at P15,000 per month. Mr. Juan Cruz inquired and
agreed for the terms and conditions and so he paid in advance a rental for two
years starting January 31, 2018. Income method was used.
6. P900,000 was borrowed from a bank by issuing a note dated October 31, 2018.
It will be paid after two years with interest at an annual rate of 24%.
7. A review of the P34,000 insurance premium which was paid on September 30,
2018 showed that P6,800 is unexpired at the year end. Asset Method was used.
8. The service income Account showed of P80,000 showed that P50,000 remains
unearned at the end of the year.
9. On November 1, 2018, paid P360,000 for six months rent of the office building
commencing on December 1, 2018. Expense Method was used.
10. Office supplies on hand at December 31, 2018 amounted to P30,000. Such office
supplies was purchased on June 1, 2018 on account amounting P100,000. Asset
Method was used.
PROBLEM 1
Prepare Journal Entries made on the date of the transactions and adjusting
entries for the year ending December 31, 2018 under each of the following independent
cases:
1. On November 1, 2018, paid P360,000 for six months rent of the office building
commencing on December 1, 2018. Asset Method was used.
2. Office supplies on hand at December 31, 2018 amounted to P30,000. Such office
supplies was purchased on June 1, 2018 on account amounting P100,000.
Expense Method was used.
3. A desktop computer was purchased on March 31, 2018 on account for P35,000
with an estimated useful life of five years and a salvage value of P5,000
4. A review of the P34,000 insurance premium which was paid on October 1, 2018
showed thatP6,800 is expired at the year end. Expense Method was used.
5. The office space being rented is so big and so one fourth of such office space
was advertised for rent at P15,000 per month. Mr. Juan Cruz inquired and
agreed for the terms and conditions and so he paid in advance a rental for two
years starting January 31, 2018. Income method was used.
6. P900,000 was borrowed from a bank by issuing a note dated October 31, 2018.
It will be paid after two years with interest at an annual rate of 24%.
7. A review of the P34,000 insurance premium which was paid on September 30,
2018 showed that P6,800 is unexpired at the year end. Asset Method was used.
8. The service income Account showed of P80,000 showed that P50,000 remains
unearned at the end of the year.
9. On November 1, 2018, paid P360,000 for six months rent of the office building
commencing on December 1, 2018. Expense Method was used.
10. Office supplies on hand at December 31, 2018 amounted to P30,000. Such office
supplies was purchased on June 1, 2018 on account amounting P100,000. Asset
Method was used.
