Scribd
Upload
35 views

B

The document provides adjusting entries for a biweekly audit. It includes entries for equipment acquisition, purchases, doubtful accounts, treasury shares, depreciation, insurance, unearned rent, and miscellaneous expenses. It also includes a working table with trial balance, adjustments, profit/loss, and financial position columns.

Uploaded by

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

B

The document provides adjusting entries for a biweekly audit. It includes entries for equipment acquisition, purchases, doubtful accounts, treasury shares, depreciation, insurance, unearned rent, and miscellaneous expenses. It also includes a working table with trial balance, adjustments, profit/loss, and financial position columns.

Uploaded by

Michelle Baba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Biweekly 1.

1
A. Audit adjusting entries

1. Equipment acquisition fund ₱ 60,000


Cash ₱ 60,000
#
2.
3. Purchases ₱ 50,000
Accounts Payable ₱ 50,000
#

4. Doubtful Account Expense ₱ 9,750*


Allowance for Doubtful Accounts ₱ 9,750
#
* ₱ 615,000 x .05 = ₱ 30,750- ₱21,000 = ₱ 9,750

1. Treasury Shares ₱ 30,000

Investment ₱ 30,000
#

2. Depreciation Expense ₱ 39,200*


Accumulated Depreciation ₱ 39,200
#

*Computation for Depreciation Expense (No.6)


Furniture and Equipment ₱ 312,000
Add: Miscellaneous Equipment ₱ 90,000
Total Furniture and Equipment ₱ 402,000
Less: Acquired for cash, June 30, 2018 (₱20,000)
Total acquired at the inception ₱ 382,000

Annual Depreciation ₱ 76,400/2 = ₱ 38,200 (by 6 months)


Annual Depreciation Rate = ₱ 38,200/₱ 382,000 = .10 or 10%

Annual Depreciation ₱ 38,200


New depreciation beginning balance ₱ 1,000**
Depreciation Expense ₱ 39,200
**(20,000 x 10% = 2,000 x 6/12)

3. Insurance Expense ₱ 1,200


Prepaid Expense ₱ 1,200
#

4. Unearned Rent Income ₱ 2,800*


Rent Income ₱ 2,800
#

*(₱ 12,800 - ₱ 10,000 = ₱ 2,800) increased

5. Miscellaneous Expense ₱ 3,000**


Accrued Expense ₱ 3,000
#
**[₱ 51,000 - ₱ 54,000 = (₱ 3,000)] decreased

Closing Entries:
Ending Inventory ₱ 650,000
Cost of Goods Sold ₱ 2,408,000
Purchases ₱ 2,474,000
Beginning Inventory ₱ 584,000
B. Working Table

Trial Balance Adjustments Profit or Loss Financial Position

Account Titles Debit Credit Debit Credit Debit Credit Debit Credit
Cash ₱191,000 ₱ 60,000
Accounts Receivable ₱615,000
Allowance for doubtful ₱21,000 ₱ 9,750
accounts
Inventory, Dec. 31,2017 ₱584,000 ₱ 584,000
Prepaid Expense ₱ 8,000 ₱ 1,200
Investment ₱ 110,000 ₱ 30,000
Furniture and Equipment ₱ 312,000
Miscellaneous Equipment ₱ 90,000
Accumulated Depreciation ₱ 76,400 ₱ 39,200
Accounts Payable ₱ 543,000 ₱ 50,000
Accrued Expenses ₱ 51,000 ₱ 3,000
Unearned Rent Income ₱ 12,800 ₱ 2,800
Ordinary Share Capital ₱ 600,000
Retained Earnings ₱ 182,800
Sales ₱3,500,000
Rent Income ₱ 48,000 ₱ 2,800
Purchases ₱ 2,424,000 ₱ 50,000 ₱ 2,474,000
Salaries Expenses ₱ 400,000
Advertising Expense ₱ 124,000
Commission Expense ₱ 80,000
Utilities Expense ₱ 32,000
Supplies ₱ 12,000
Transportation Expense ₱ 14,000
Repair and Maintenance ₱ 16,000
Miscellaneous Expenses ₱ 23,000 ₱ 3,000
₱ 5,035,000 ₱ 5,035,000
Equipment acquisition fund ₱ 60,000
Doubtful accounts expense ₱ 9,750
Inventory, Dec. 31, 2018 ₱ 650,000
Cost of Goods Sold ₱ 2,408,000
Treasury Shares ₱ 30,000
Depreciation Expense ₱ 39,200
Insurance Expense ₱ 1,200
₱ 3,253,950 ₱3,253,950
Profit before income tax

Profit before income tax


Income tax expense (30%)
Income tax payable
Profit

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy