ADJUSTING ENTRIES

1. (Accrued Expense) A company has 20 employees who each earn P500 per week for a 5-day week that begins on Monday.
December 31 of Year 1 is a Monday, and all 20 employees worked that day. Prepare the required adjusting journal entry to
record accrued salaries on December 31, 2004 .
2. (Accrued Expense) Barnes Company has 20 employees who are each paid P80 per day for a 5-day workweek. The
employees are paid each Friday. This year the accounting period ends on Tuesday. Prepare the December 31 year-end
adjusting journal entry Barnes Company should make to accrue wages.
3. (Accrued expense) Show the December 31 adjusting entry to record P750 of earned but unpaid salaries of employees at the
end of the current accounting period.
4. (Accrued expense) On December 1, 2011, the company issued a P30,000 90-day 8% note for the purchase of inventory.
Prepare adjusting entries if the company prepares their financial statement every December 31.
5. (Accrued Revenue) On December 14 Bench Company received P3,700 cash for consulting services that will be performed in
January. Bench records all such prepayments in a liability account. Prepare a general journal entry to record the P3,700 cash
receipt.
6. (Accrued Revenue) On December 31, Connelly Company had performed P5,000 of management services for clients that had
not yet been billed. Prepare Connelly's adjusting entry to record these fees earned.
7. (Accrued Revenue) Pfister, Co. leases an office to a tenant at the rate of P5,000 per month. The tenant contacted Pfister and
arranged to pay the rent for December 2008 on January 8, 2009. Pfister agrees to this arrangement. Prepare the journal entry
that Pfister must make at December 31, 2008 to record the accrued rent revenue.
8. (Prepaid expense) Western Company had P500 of store supplies available at the beginning of the current year. During the
year Western Company purchased P2,750 worth of store supplies. On December 31 of this year P375 worth of store supplies
remained.
a. Calculate the amount of Western Company's store supplies expense for the current year. (Show your calculations.)
b. Prepare the journal entry to adjust the supplies account.
9. (Prepaid Expense) Prior to recording adjusting entries on December 31, a company's Store Supplies account had an P880
debit balance. A physical count of the supplies showed P325 of unused supplies available as of December 31. Prepare the
required adjusting entry.
10. (Prepaid Expense ) Complete the following by filling in the blanks:
(1) The Prepaid Insurance account had a P455 debit balance at the beginning of the current year; P650 of insurance premiums
were paid during the year; and the year-end balance sheet showed P420 of prepaid insurance; consequently, the income
statement for the year must have shown P______________ of insurance expense.
(2) The Office Supplies account began the current year with a P235 debit balance; the income statement for the year showed
P475 of office supplies expense; and the year-end balance sheet showed the current asset, office supplies, at P225;
consequently, if all supplies were accounted for, P____________ of office supplies must have been purchased during the year.
11. (Prepaid Expense) Topflight Company had P1,500 of store supplies at the beginning of the current year. During this year,
Topflight purchased P8,250 worth of store supplies. On December 31, P1,125 worth of store supplies remained. Calculate
the amount of Topflight Company's store supplies expense for the current year.

12. (Prepaid expense Expense method) On October 1 of the current year, Morton Company paid P9,600 cash for a one-year
insurance policy that took effect on that day. On the date of the payment, Morton recorded the following entry:
Oct. 01

Insurance Expense.................................................
Cash............................................................

9,600
9,600

Prepare the required adjusting entry at December 31 of the current year.

13. (Unearned revenue Liability method) During the current year ended December 31, clients paid fees in advance for
accounting services amounting to P25,000. These fees were recorded in an account called Unearned Accounting Fees. If
P3,500 of these fees remain unearned on December 31 of this year present the December 31 adjusting entry to bring the
accounts up to date.
14. (Unearned revenue Revenue method) Manning, Co. collected 6-months' rent in advance from a tenant on November 1 of the
current year. When it collected the cash, it recorded the following entry:
Nov. 01

Cash........................................................................
Rent Revenue Earned.................................

15,000
15,000

Prepare the required adjusting entry at December 31 of the current year.

15. (Depreciation) The company purchased a building on January 1, 2008. It cost P785,000 and is expected to have P35,000
salvage value at the end of its predicted 25-year life. Prepare adjusting entries for depreciation.
16. (Depreciation) The company purchased a building on October 1, 2011. It cost P500,000 and is expected to have P20,000
salvage value at the end of its 20 years useful life. Prepare adjusting entries for depreciation
15. (Comprehensive) Prepare general journal entries on Dec. 31 to record the following unrelated year-end adjustments.
a. Estimated depreciation on office equipment for the year, P4,000.
b. The Prepaid Insurance account has a P3,680 debit balance before adjustment. An examination of insurance policies
shows P950 of insurance expired.
c. The Prepaid Insurance account has a P2,400 debit balance before adjustment. An examination of insurance policies
shows P600 of unexpired insurance.
d. The company has three office employees who each earn P100 per day for a five-day workweek that ends on Friday.
The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday,
December 29, 30, and 31.
e. On November 1, the company received 6 months' rent in advance from a tenant whose rent is P700 per month. The
P4,200 was credited to the Unearned Rent account.
f. The company collects rent monthly from its tenants. One tenant whose rent is P750 per month has not paid his rent
for December.