Exercises on Adjusting Journal Entries

P5-5 Presented below is the unadjusted trial balance of Helper Company for the year ended December 31, 2015: Helper Company Unadjusted trial balance December 31, 2015 Cr. Dr. P 189,000 967,500 94,500 540,000 3,262,500 Cash on hand and in banks Accounts receivable Office supplies on hand Rent paid in advance Furniture and fixtures Accumulated depreciation Accounts payable 24% Note payable Aurora, Capital Aurora, Personal Service fee income Salaries and wages Heat, light and power Taxes and licenses Telephone expenses P 652,500 427,500 1,350,000 2,842,500 1,800,000 7,699,500 5,656,500 157,500 139,500 165,000 P12,972,000 P12,972,000 Additional information: Office supplies on hand at December 31, 2015 amounted to P42,500. On October 30, 2015, Helper paid Lessor Company P540,000 for six month's worth of rent on the office building, commencing on November 1, 2015. Depreciation expense for the furniture totaled P362,500 for Year 2015. As of December 31, 2015, the following expenses were still unrecorded and unpaid: a) Salaries of employees for the second half of December, P157,500. b) Telephone expenses for the month of December, P15,000. c) Heat, light and power expenses for the second half of December, P28,000 d) Interest on the 24% note payable. The P1,350,000 note was issued to the Bank of the Philippine Archipelago on November 1, 2015, and will be due in 12 months. a. REQUIRED: Prepare the necessary adjusting journal entries at period-end. b. Prepare a revised trial balance at December 31, 2015 for the Helper Company