Depreciation expense, P25,000 Insurance expense, P2,000 Prepaid expense, P120,000 Rent expense, P240,000 Salaries expense, P144,000 Service income 1,200,000 Unearned revenue, P400,000 Utilities expense, P100,000 How much is the net income? A P169,000 B) P689,000 C) P569,000 D) P289,000 The accounts receivable at year-end is P870,000. Five percent of it is doubtful of collection. The adjusting entry at year-end is A Debit to Allowance for Doubtful Accounts, 43,500 and credit to Cash, 43,500 B Debit to Doubtful Accounts, 43,500 and credit to Cash, 43,500 Debit to Allowance for Doubtful Accounts, 43,500 and credit to Doubtful Accounts, 43,500 (D) Debit to Doubtful Accounts, 43,500 and credit to Allowance for Doubtful Accounts, 43,500 A summary of the time tickets for August follows: Description Amount Description Job No. 321 $11,000 Job No. 342 Job No. 329 8,200 Job No. 346 Job No. 336 2,000 Indirect labor 5,000 The factory overhead rate is 70% of direct labor cost. Required: 1. Compute the labor cost incurred to be debited to Work in Process. Blank 1 2. Compute the application of factory overhead to production for August. Blank 2 Amount $8,300 5,700 Question 54 The adjusted trial balance shows the following: Accumulated depreciation-equipment, P100,000 Accumulated depreciation-furniture and fixture, P120,000 Accounts receivable, P400,000 Allowance for doubtful accounts, P20,000 Cash, P250,000 Equipment, P350,000 Furniture and fixture, P450,000 Supplies on hand, P48,000 Prepaid rent, P60,000 How much is the non-current assets? (A) P580,000 B) P690,000 C) P738,000 D) P778,000 Question 52 Accounts payable, P60,000 Bonds payable due after five years, P500,000 Long-term loans payable, P180,000 Short-term notes payable, P100,000 How much is the total non-current liabilities? A P840,000 B) P680,000 P340,000 D P160,000