Therefore its annual depreciation is 50000 building

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100,000 / 2. Therefore, its annual depreciation is 50,000. Building is already 2.5 years old during the end of the accounting period. Therefore its depreciable amount per year is 86,250/1.5. Therefore its depreciable amount is 57,500.
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Adjusting Journal Entries c. Mang Rodel, a janitor rendered his services for 5,000 to the company but has not yet been paid and not recorded on the company’s books. Sal.Exp 5,000.00 Sal.Payable 5,000.00
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Adjusting Journal Entries d. Insurance was prepaid on April 30, 2015 and will be 2/3 unexpired as of the beginning of May 2016. One-fourth of the office supplies remained unused. The rent was prepaid on December 31,2016 for 5 years of rent. Prepaid Insurance 34,285.71 Insurance Expense 34,285.71 Office Supplies Expense 2,700.00 Office Supplies 2,700.00 Prepaid Rent 70,000.00 Rent Expense 70,000.00 3,000 x 3/4 No rent have been used yet. 60,000/ 28/36 = 77,142.86 77,142.86/ 36 = 2,142.86 2,142.86 x 20 = 42, 857.14 77,142.86 – 42, 857.14 = 34,285.71
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Adjusting Journal Entries e. Bad debts are estimated at 1% of net sales. Unrecorded sales on credit, shipped on December 27 has a cost of P17,000. Selling price is set at 120% of the inventory’s cost. AR 20,400.00 Sales 20,400.00 BDE 21,688.00 ADA 21,688.00 17,000 x 120% 2,168,800 x 1%
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Adjusting Journal Entries f. A sale of goods in FOB Shipping Point on December 13, for ₱100,000 has never reached the customer because of accident while still on transit. On the other hand, a sale of goods costing 10,000 on December 30 in FOB Destination has not yet reached the customers as of year-end but was already paid. Sales 12,000. 00 Payable to customers 12,000. 00 10,000 x 120%
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Adjusting Journal Entries g. The company wrote-off part of Receivables and the adjusted net realizable value of Accounts Receivables at year-end is 105,000. ADA 5,088.00 AR 5,088.00 Computation
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Adjusted Trial Balance As of December 31, 2016 Cash 400,000.00 Accounts Receivable 120,400.00 Allowance for Bad Debts 20,488.00 Inventory 36,500.00 Office Supplies 900.00 Prepaid Rent 70,000.00 Prepaid Insurance 34,285.71
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  • Spring '09
  • changyutan
  • Generally Accepted Accounting Principles, FOB Destination, c. Mang Rodel, d. Insurance

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