The document lists various account titles with debits and credits to either income statement (IS) or statement of financial position (SFP) accounts. It records 7 transactions including a 1.8% bank loan interest expense, telephone bill expense, expired insurance expense, bad debt expense on an insolvent customer, interest income from a customer note, prepaid rent revenue, and equipment depreciation expense.
The document lists various account titles with debits and credits to either income statement (IS) or statement of financial position (SFP) accounts. It records 7 transactions including a 1.8% bank loan interest expense, telephone bill expense, expired insurance expense, bad debt expense on an insolvent customer, interest income from a customer note, prepaid rent revenue, and equipment depreciation expense.
The document lists various account titles with debits and credits to either income statement (IS) or statement of financial position (SFP) accounts. It records 7 transactions including a 1.8% bank loan interest expense, telephone bill expense, expired insurance expense, bad debt expense on an insolvent customer, interest income from a customer note, prepaid rent revenue, and equipment depreciation expense.
The document lists various account titles with debits and credits to either income statement (IS) or statement of financial position (SFP) accounts. It records 7 transactions including a 1.8% bank loan interest expense, telephone bill expense, expired insurance expense, bad debt expense on an insolvent customer, interest income from a customer note, prepaid rent revenue, and equipment depreciation expense.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 2
Account Titles Dr or Cr IS or SFP
1.8% one year bank loan of the Interest Expense Debit IS
company is dated July 15. Interest Payable Credit SFP 2. Telephone Bill is received from PLDT Utilities Expense Debit IS Utilities Payable Credit SFP
3. Prepaid insurance has expired Insurance Expense Debit IS
Prepaid Expense Credit SFP 4. Credit Customer is declared Bad Debts Expense Debit IS insolvent Accounts Receivable Credit SFP 5. Customer’s 5% one year note is Notes Receivable Debit SFP dated December 1. Service Income Credit IS 6. Advance collection from tenant is Cash Debit SFP already earned. Unearned Service Income Credit SFP
7. Equipment has a life of 10 years Depreciation Expense Debit IS
Accumulated Depreciation Credit SFP
2.
A. Accrued Commission Income P10,000
Commission Receivable P10,000
Commission Income P10,000
B. Accrued Utility Expense of P5,000
Utilities Expense P5,000
Utilities Payable P5,000
C. Bad Debts of P2,000 under the direct- off method
Bad Debts Expense P2,000
Accounts Receivable P2,000
D. Depreciation of Equipment for P3,500
Depreciation Expense P3,500
Accumulate Depreciation P3,500 E. Used supplies for P350 under the asset method from total purchases of P500 Supplies Expense P350 Supplies P350
F. Earned commission of P2,500 under the liability method if advance collection amounted to P3,000
Cash P2,500 Unearned Commission P2,500
3. Refer to exercise 2
A. How much will be the additional operating expenses? P10,850
B. How much will be the additional revenues? P10,000
4.
A. December 1 for the note received
Note Receivable P900
Service Income P900
B. December 31 for the adjustment to accrued interest for 30 days.
