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Leslie Winkle is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Bicol region. Leslie Winkle, the owner,
Leslie Winkle is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Bicol region. Leslie Winkle, the owner, made no investments during the year. The following information are also available: Credit 225,000 Twinkle Cleaners TRIAL BALANCE December 31, 2020 Debit Cash P 168,940 Accounts Receivable 246,690 Prepaid Insurance 18,000 Office Supplies 36,870 Land 189,220 Building 810,000 Accumulated Depreciation - Building Delivery Truck 140,000 Accumulated Depreciation - Delivery Truck Accounts Payable Unearned Delivery Revenues Mortgage Payable Winkle, Capital Winkle, Drawings 100,000 Delivery Revenues Wages Expense 230,600 Rent Expense 50,000 Interest Expense 55,000 Other Expenses 69,170 Totals P2,114,490 56,000 102,000 40,000 600,000 290,600 800,890 P2,114,490 a. An analysis of the insurance policies showed that 1/3 of the amount is still unexpired b. An inventory of Office supplies amounted to P6,350 on hand. C. The Depreciation for the building is P6,000 d. Delivery Truck was purchased on January 1, 2018 with no salvage value e. On July 1, 2020, the company signed a contract immediately with Priya Co. to deliver certain merchandise to one of their branches in Nabua, Camarines Sur, for a fixed monthly charge of P5,000. Priya Co. paid for eight months' service in advance. f. Delivery wages are paid on Saturdays. The weekly payroll is P4,800. Assume that December 31, falls on a Thursday and the company has six-day pay week (no work on sundays). g. Accrued interest on mortgage payable is P5,000 REQUIRED: For each item, provide the adjusting journal entries
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