Ba 99.1 tomorrow-1.pptx

# 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
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%
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
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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