Cash 5,087,000 Accounts Receivable 265,000 Allowance for Bad Debts 12,000 Notes Receivable 587,000 Office Supplies 70,000...

 

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Cash 5,087,000 Accounts Receivable 265,000 Allowance for Bad Debts 12,000 Notes Receivable 587,000 Office Supplies 70,000 Prepaid Rent 270,000 Prepaid Insurance 516,000 Equipment 573,000 Accumulated Depreciation - Eqpt 105,000 Land 5,000,000 Accounts Payable 527,000 2.5% Notes Payable 1,500,000 Cotton, Capital Cotton, Drawing Service Income Supplies Expense 9,960,000 200,000 853,000 30,000 Rent Expense 270,000 89,000 12,957,000 12,957,000 Utilities Expense The following transactions refer to Cotton's Laundry Services: A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to Notes Receivable. B. The Notes payable was issued on 3/1/20, payable after 2 years. C. Notes receivable was received on 10/1/21, and is payable semi-annually for the next 2 years. Interest rate was twice of the Notes payable. D. Supplies amounted to P100,000 on 1/1/21. 69% of total Supplies were used at year-end. E. Cotton is under a 2-year rent contract amounting to P720,000 since 1/1/2021. She will pay P180,000 at the end of every quarter, starting March 1, 2021, until the full price is paid. Cotton's last record related to this transaction was on September 30, 2021. F. Cotton availed a 4-year P576,000 fire insurance last 8/1/20. G. Equipment was purchased on 6/1/20. It is estimated that it could be sold for P123,000 at the end of its useful life. H. Cotton failed to record a P300,000 service that she rendered. As of 12/31/21, only 80% of this balance has been collected. I. For 2021, Cotton started off with 4 employees with monthly salaries of P15,000 each. After 3 months, she hired an additional 3 employees with a payment cut-off salary of P10,000. Payment of salaries is made every 15th and last day of the month. J. 5% of total Accounts Receivable is expected to be uncollectible. Provide the answer for the following questions: (3 pts. Each) 1.) How much is adjusted Interest Expense on December 31, 2021? 2.) How much is adjusted Notes Receivable on December 31, 2021? 3.) How much is adjusted Interest Income on December 31, 2021? 4.) How much was recorded to Supplies Expense on December 31, 2021? 5.) How much is adjusted Supplies on December 31, 2021? 6.) How much is adjusted Prepaid Rent on December 31, 2021? 7.) How much was recorded to Rent Expense on December 31, 2021? 8.) How much is adjusted Prepaid Insurance on December 31, 2021? 9.) How much is adjusted Insurance Expense on December 31, 2021? 10.) How much is Accumulated Depreciation per year? 11.) How long is the estimated useful life of the equipment? 12.) How much is adjusted Salaries Expense on December 31, 2021? 13.) How much is adjusted Accounts Receivable on December 31, 2021? 14.) How much is adjusted Allowance for Bad Debts on December 31, 2021? 15.) How much is adjusted Bad Debts Expense on December 31, 2021? 16.) How much is adjusted Cash on December 31, 2021? 17.) How much is adjusted Service Income on December 31, 2021? Cash 5,087,000 Accounts Receivable 265,000 Allowance for Bad Debts 12,000 Notes Receivable 587,000 Office Supplies 70,000 Prepaid Rent 270,000 Prepaid Insurance 516,000 Equipment 573,000 Accumulated Depreciation - Eqpt 105,000 Land 5,000,000 Accounts Payable 527,000 2.5% Notes Payable 1,500,000 Cotton, Capital Cotton, Drawing Service Income Supplies Expense 9,960,000 200,000 853,000 30,000 Rent Expense 270,000 89,000 12,957,000 12,957,000 Utilities Expense The following transactions refer to Cotton's Laundry Services: A. Cotton serviced for P75,000, on account. She mistakenly recorded the promise to pay as 57,000 to Notes Receivable. B. The Notes payable was issued on 3/1/20, payable after 2 years. C. Notes receivable was received on 10/1/21, and is payable semi-annually for the next 2 years. Interest rate was twice of the Notes payable. D. Supplies amounted to P100,000 on 1/1/21. 69% of total Supplies were used at year-end. E. Cotton is under a 2-year rent contract amounting to P720,000 since 1/1/2021. She will pay P180,000 at the end of every quarter, starting March 1, 2021, until the full price is paid. Cotton's last record related to this transaction was on September 30, 2021. F. Cotton availed a 4-year P576,000 fire insurance last 8/1/20. G. Equipment was purchased on 6/1/20. It is estimated that it could be sold for P123,000 at the end of its useful life. H. Cotton failed to record a P300,000 service that she rendered. As of 12/31/21, only 80% of this balance has been collected. I. For 2021, Cotton started off with 4 employees with monthly salaries of P15,000 each. After 3 months, she hired an additional 3 employees with a payment cut-off salary of P10,000. Payment of salaries is made every 15th and last day of the month. J. 5% of total Accounts Receivable is expected to be uncollectible. Provide the answer for the following questions: (3 pts. Each) 1.) How much is adjusted Interest Expense on December 31, 2021? 2.) How much is adjusted Notes Receivable on December 31, 2021? 3.) How much is adjusted Interest Income on December 31, 2021? 4.) How much was recorded to Supplies Expense on December 31, 2021? 5.) How much is adjusted Supplies on December 31, 2021? 6.) How much is adjusted Prepaid Rent on December 31, 2021? 7.) How much was recorded to Rent Expense on December 31, 2021? 8.) How much is adjusted Prepaid Insurance on December 31, 2021? 9.) How much is adjusted Insurance Expense on December 31, 2021? 10.) How much is Accumulated Depreciation per year? 11.) How long is the estimated useful life of the equipment? 12.) How much is adjusted Salaries Expense on December 31, 2021? 13.) How much is adjusted Accounts Receivable on December 31, 2021? 14.) How much is adjusted Allowance for Bad Debts on December 31, 2021? 15.) How much is adjusted Bad Debts Expense on December 31, 2021? 16.) How much is adjusted Cash on December 31, 2021? 17.) How much is adjusted Service Income on December 31, 2021?

Answer rating: 100% (QA)

Lets analyze each transaction and its impact on the accounts A Cotton serviced for P75000 on account ... View the full answer