CHAPTER 1 Review of the Accounting Process
E 1-1 1. Unea Unearn rned ed Reve Revenu nuee 2. Prep Prepai aid d Expe Expens nsee 3. Accr Accrue ued d Expe Expens nsee 4. Accr Accrue ued d Expe Expens nsee 5. Prep Prepai aid d Expe Expens nsee 6. Unearned Revenue 7. Accrued Re Revenue 8. Accrued Ex Expense 9. Unearned Revenue 10. Accru ccrued ed rev reven enu ue
11. 11. 12. 12. 13. 13. 14. 14. 15. 15.
Accru ccrued ed Expe Expens nsee Accru ccrued ed Reve Revenu nuee Prep Prepai aid d Expe Expens nsee Unea Unearn rned ed Reve Revenu nuee Accru ccrued ed Expe Expens nsee
E 1-2 1. All All!a !anc ncee "r "r Unc Uncll llec ec#i #i$l $lee Acc Accu un# n#ss 2. Ren# Expense 3. %""i ""ice &up &uppli plies Expen xpensse 4. &alaries Pa'a$le 5. Prepaid (nsurance 6. (n#eres# Revenue 7. (n#eres# Pa'a$le 8. Unearned Ren# 9. Accu) ccu)u ula#e la#ed d *epr *eprec ecia ia#i #i n 10. (nc (nc) )e &u) &u))ar' ar' E 1-3 1. a.
Unearned Ren# Ren# Revenue P300+000 x 1,12 P25+000
25+000 25+000
reversin/ en#r' $.
(nsurance Expense Prepaid (nsurance P90+000 x 10,12 P75+000
75+000 75+000
reversin/ en#r' 2.
a.
$.
Ren# Revenue Unearned Ren# P300+000 x 11,12 P275+000
275+000
Unearned Ren# Ren# Revenue
275+000
Prepaid (nsurance (nsurance Expense P90+000 x 2,12 P15+000
275+000
275+000 15+000 15+000
PC – Chapter 2
E 1-4 1. a.
$.
c.
d.
e.
".
/.
.
i.
2.
page 2
(nsurance Expense Prepaid (nsurance
15+000
(n#eres# Expense (n#eres# Pa'a$le P2+000+000 x 6 x 4,12 P40+000
40+000
Prepaid (nsurance (nsurance Expense P72+000 x 25,36 P50+000
50+000
Prepaid Ren# Ren# Expense P360+000 x 11,12 P330+000 Uncllec#i$le Accun#s Expense All!ance "r Uncllec#i$le Accun#s
15+000
40+000
50+000
330+000 330+000
60+000 60+000
&alar' Expense &alaries Pa'a$le P450+000 x 2,5 P180+000
180+000
*eprecia#in Expense %""ice Euip)en# Accu)ula#ed *eprecia#in %""ice Euip)en# P480+000 ÷ 5 P96+000 P120+000 ÷ 5 x 5,12 P10+000
106+000
&upplies n and &upplies Expense
180+000
106+000
4+500 4+500
Ren#al Revenue Unearned Ren# P180+000 x 4,6 P120+000
120+000
(nc)e &u))ar' ercandise (nven#r'
180+000
ercandise (nven#r' (nc)e &u))ar'
220+000
120+000
180+000
220+000
a+ $+ c+ e+ /
E 1-5 1. a.
(nc)e &u))ar' (nven#r'+ $e/. (nven#r'+ end (nc)e &u))ar'
50+000 50+000 140+000 140+000
PC – Chapter 2
$.
2.
page 3
(nven#r'+ end Purcases Re#urns s# " ds &ld Purcases :rei/#-in (nven#r'+ $e/.
140+000 20+000 2+000+000 2+100+000 10+000 50+000
Apprac 2 a. &ales (n#eres# Revenue (nc)e &u))ar' $.
c.
d.
5+000+000 25+000 5+025+000
(nc)e &u))ar' (nven#r'+ end Purcases Re#urns and All!ances (nven#r'+ $e/. Purcases :rei/#-(n Ad)inis#ra#ive Expense &ales Re#urns &ales *iscun#s &ellin/ Expenses (n#eres# Expense
2+980+000 140+000 20+000
(nc)e &u))ar' as#r+ api#al
2+045+000
50+000 2+100+000 10+000 500+000 5+000 10+000 450+000 15+000
2+0450+000
as#r+ api#al as#r+ *ra!in/
500+000 500+000
E 1-6 1. 2. 3. 4. 5.
A A A A ;
6. 7. 8. 9. 10.
; r A A ;
11. 12. 13. 14. 15.
; A A A
16. 17. 18. 19. 20.
; A ; ;
P 1-1 1.
a.
(nsurance Expense Prepaid (nsurance P48+000 x 3,12 P12+000
12+000 12+000
reversin/ en#r' $
Ren# Revenue Unearned Ren#
210+000 210+000
PC – Chapter 2
page 4
P270+000 x 7,9 P210+000 Unearned Ren# Ren# Revenue c.
d.
210+000 210+000
&upplies &upplies Expense P12+000 P3+000 P9+000
4+500
&upplies Expense &upplies
4+500
*eprecia#in Expense Accu)ula#ed *eprecia#in P350+000,5 x 9,12 P52+500
4+500
4+500 52+500 52+500
n reversin/ en#r' e.
Uncllec#i$le Accun#s Expense All!ance "r Uncllec#i$le Accun#s
8+000 8+000
n reversin/ en#r' ".
/.
.
(n#eres# Receiva$le (n#eres# Revenue P150+000 x 12 x 30,360 P1+500
1+500
(n#eres# Revenue (n#eres# Receiva$le
1+500
1+500
1+500
&alar' Expense &alaries Pa'a$le
155+000
&alaries Pa'a$le &alar' Expense
155+000
ercandise (nven#r' (nc)e &u))ar'
122+000
(nc)e &u))ar' ercandise (nven#r'
120+000
ercandise (nven#r' (nc)e &u))ar'
150+000
155+000
155+000
122+000
P 1-2 a.
$.
c.
&ales Purcase Re#urns All!ance (nc)e &u))ar'
120+000
150+000 5+700+000 90+000 5+790+000
PC – Chapter 2
d.
e.
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page 5
(nc)e &u))ar' &ales Re#urns and All!ance Purcases :rei/#-in &upplies Expense (nsurance Expense &alar' Expense *eprecia#in Expense %""ice Expense
4+029+000
(nc)e &u))ar' %lsn+ api#al
1+791+000
%lsn+ api#al %lsn+ *ra!in/
150+000 3+000+000 120+000 18+000 27+000 540+000 24+000 150+000
1+791+000 180+000 180+000
P 1-3 Adjusting Entr a. $. c. d. e. ". /.
P 1-4 1. a.
$.
c.
d.
Income Statement Revenue E!"enses #et Income E E E E E E E -
))issins Receiva$le ))issins (nc)e Ren# Expense Prepaid Ren# %""ice &upplies Expense %""ice &upplies *eprecia#in Expense Accu)ula#ed *eprecia#in
Statement of Financial Position Assets $ia%ilities Ca"ital E E E E E E E -
7+200 7+200 36+000 36+000 6+600 6+600
2+400 2+400
e.
".
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&alaries Expense &alaries Pa'a$le
4+800
Unearned ))issins ))issins (nc)e
8+000
(n#eres# Expense (n#eres# Pa'a$le
1+200
4+800
8+000
1+200
PC – Chapter 2
2.
a.
$.
c.
d.
3.
page 6
(nc)e &u))ar' &alaries Expense Ren# Expense %""ice &upplies Expense *eprecia#in Expense %""ice Euip)en# (n#eres# Expense
111+000
))issins (nc)e (nc)e &u))ar'
175+200
64+800 36+000 6+600 2+400 1+200
175+200
(nc)e &u))ar'
64+200
32+000
64+200
32+000
e# (nc)e P64+200
P 1-5 1. (nsurance Expense Prepaid (nsurance 2.
3.
4.
30+000 30+000
*eprecia#in Expense %""ice Euip)en# *eprecia#in Expense Au#)$ile Accu)ula#ed *eprecia#in %""ice Euip)en# Accu)ula#ed *eprecia#in - Au#)$ile
75+000 260+000 75+000 260+000
Unearned ana/e)en# :ees ana/e)en# :ees Earned P120+000 x 4,6 P80+000
80+000
Prepaid Adver#isin/ Adver#isin/ Expense P100+000 x 2,5 P40+000
40+000
ul#iple ice 1. 2. * 3.
4. 5. 6.
80+000
40+000
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7. 8. 9.
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10. 11. 12.
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6. 7. 8. 9. 10.
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16. 17. 18. 19. 20.
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11. 12. 13. 14.
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PC – Chapter 2
page 7
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11. 12. 13. 14. 15.
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