hfar 5.docx - Word Table Teo's Sign in File Home Insert Design layout References Mailings Review View Help Design layout Tell me what you want to do Share The following selected ledger balances were provided to you at year-end (before adjusting journal entries) by Happy Buddy Tour Services, a calendar year services business owned by Igo Santiago. The year 2019 is their first year of business operations Account Title Debit Credit Accounts Receivable P435,000 Notes Receivable 90,000 Equipment 125,000 Furniture and Fixtures 36.000 Prepaid Rent 21,000 Allowance for Doubtful Accounts Accumulated Depreciation - Equipment Accumulated Depreciation - Furniture and Fixtures Page of 1215 words 3 145 hfar 5.docx Word Table Tools Sign in X File Home Insert Design layout References Mailings Review Vica Help Design layout Tell me what you want to do 2. Share Interest Receivable Notes Payable 57,000 Utilities Payable Salaries Payable Unearned Service Revenue 240,000 Interest Payable Interest Income Insurance Expense 45,000 Interest Expense Depreciation Expense Doubtful Accounts Expense Pages of 1216 words 159 B BEAR MID.docx Word Sign in X File Home : Insert Design layout References VICA Share Mailings Review Help Tell me what you want to do Prepare adjusting journal entries dated December 31, 2019 based on the following additional information: 1. The electric and water bills for December amounting to P3,700 and P1,250, respectively, were received on January 6, 2020. 2. Salaries for the second half of December amounting to P22,720 were paid on January 7, 2020. The accountant did not make any journal entry to recognize this expense on December 31. 3. The received note as indicated in the ledger above was dated November 12, 2019. The terms of the note are: 12%, 90 days. 4. The issued note as indicated in the ledger above was dated October 26, 2019. The terms of the note are: 14%. 120 days. 5. Prepayment of rent was made on December 1, 2019. The total amount covers three months 6. Prepayment of insurance was made on September 1, 2019. The total amount covers five months Page 20 of 5 8827 wurus E 127 B BEAR MID.docx Word Sign in X File Home : Insert Design layout Vica Share References Mailings Review Help Tell me what you want to do 7. Eighty percent of the unearned service revenue had already been rendered as of December 31, 2019. 8. It is the policy of the business to set-up allowance for doubtful accounts at 4% outstanding account receivable. 9. The equipment was bought on April 1, 2019. It has an estimated useful life of six years and a salvage value of P5,000. 10. The furniture and fixtures were bought on May 1, 2019. It has an estimated useful life of four years and a salvage value P3,000 Additional requirements: 1. What is the carrying value of Equipment as of December 31, 2019? 2. What is the carrying value of Furniture and Fixtures as of December 31, 2019? 3. What is the net realizable value of Accounts Receivable as of December 31, 2019? 4. What is the adjusted balance of Prepaid rent as of December 31, 2019? 5. What is the adjusted balance of Unearned Service Revenue as of December 31, 2019? Page 21 of 51 0827 URUS 128
