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Assignment. Adjusting Entries: Accumulated Depreciation

The document discusses adjusting journal entries that need to be made for a company closing its books on December 31, 2020. It includes entries for unbilled services, unused supplies, an unpaid utilities bill, depreciation on a computer purchase, unearned revenue from an advance payment, and unpaid employee wages.

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Charlote Marcellano
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2K views1 page

Assignment. Adjusting Entries: Accumulated Depreciation

The document discusses adjusting journal entries that need to be made for a company closing its books on December 31, 2020. It includes entries for unbilled services, unused supplies, an unpaid utilities bill, depreciation on a computer purchase, unearned revenue from an advance payment, and unpaid employee wages.

Uploaded by

Charlote Marcellano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Assignment.

Adjusting Entries

Your company is closing its books on December 31, 2020. Analyze the following items and prepare the
necessary adjusting journal entries:

1. On December 30, 2020, your company performed P27,000 worth of service but did not bill the
client until January 5, 2021.
2. On November 1, 2020, your company purchased office supplies for P5,000 but did not make an
adjusting entry to reflect the P1,500 unused at December 31, 2020.
3. You did not record the MERALCO bill received on December 31, 2020 for P6,500. You have
scheduled the payment on January 6, 2021.
4. Your company purchased a new set of computer on August 1, 2020 for P30,000. The computer
has an estimated useful life of 5 years with no salvage value. No depreciation was recorded on
this equipment.
5. On October 1, 2020, your company agreed to work on a new project and is paid P50,000 in
advance for 6 months contract starting December 1, 2020. Service Revenue was credited when
the advance payment was received.
6. Your company’s weekly five-day payroll is paid every Friday. But December 31, falls on a
Tuesday. The employees will not be paid until the following Friday. The weekly wages amount to
P25,000

1. DECEMBER 30, 2020 ACCOUNTS RECEIVABLE P27,000.00


SERVICE REVENUE P27,000.00

2. NOVEMBER 01,2020 SUPPLIES EXPENSE P3,500.00


SUPPLIES P3,500.00

3. December 31,2020 UTILITIES EXPENSE P6,500.00


UTILITIES PAYABLE P6,500.00

4. AUGUST 01, 2020 DEPRECIATION EXPENSE P2,500.00


ACCUMULATED DEPRECIATION P2,500.00

5. OCTOBER 01, 2020 SERVICE REVENUES P41,667.00


UNEARNED SERVICE REVENUES P41,667.00

6.
DECEMBER 31, 2020 SALARIES EXPENSE P10,000.00
SALARIES PAYABLE P10,000.00

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