Need: Journal entry & Adjusting entry
Part 4: CHALLENGE GAME Grace Lynne Alado owns the famous Grace Training Center. Presented below is the November 30, 2019 trial balance representing activities from January 1- November 30, 2019. Required: 1) JOURNAL ENTRIES for the month of December (omit explanation) 2) ADJUSTING ENTRIES at the year-end, December 31, 2019 a. Unused training supplies, P 28,400 b. All fixed assets were acquired on Jan. 2, 2019 The respective useful lives are: Building = 30 years Equipment = 5 years Vehicle = 10 years c. Deferred advertising d. Deferred insurance e. Unpaid salaries f. December interest on notes remained unrecorded. 9. Estimated uncollectible accounts is 2% of Accounts Receivable h. An interest of 2% per month was charged to Mortgage Payable The loan was approved July 1, 2019. Grace Training Center Trial Balance Credit Acct. No. 110 120 130 130A 140 150 Debit 260,500 800,000 740,000 0 0 160 130,350 0 0 2,000,000 6,000,000 0 2,750,000 0 900,000 November 29, 2015 Account Titles Cash Notes Receivable Accounts Receivable Allowance for Uncollectible Accounts Interest Receivable Training Supplies Prepaid Insurance Prepaid Advertising Land Training Building Accumulated Depreciation-Bldg Training Equipment Accumulated Depreciation Equip Training Vehicle Accumulated Depreciation Vehicle Notes Payable Accounts Payable Interest Payable Unearned Training Fees Salaries Payable Mortgage Payable Alado, Capital Alado, Drawing Training Fees Interest Income Salaries Expense Advertising Expense Training supplies expense Travel Expense Representation Expense Training Insurance Expense Telephone Expense Lights & power Water Expense Gas & oil Uncollectible Accounts Expense Depreciation Expense Interest Expense 170 200 210 210A 220 220A 230 230A 300 310 320 320 330 350 400 410 500 510 600 610 620 630 640 650 660 670 680 690 700 710 720 0 2,250,000 1,750,000 0 500,000 0 6,000,000 2,000,000 300,000 3,375,000 0 1,350,000 180,000 0 78,200 85,900 77,000 99,450 57,050 23,050 43,500 0 0 0 15,875,000 15,875,000 During the month of December 2019, the following transactions took place. 2 3 Received a 12% promissory note from Kathy Alviar for training conducted, P60,000. (no interest was recorded) Acquired a new training contract from Rodriquez Training Center for P800,000. Terms: 30% cash and 12% interest on promissory note for the balance Collected the accounts receivable from Del Rosario, P240,000. 4 5 6 7 Settled the promissory note worth P50,000 plus interest of P. 5,000. Paid Juven Channel the 2020 TV Advertising, P36,000. Running period from December 2019 to May 2020. Bought additional training supplies from Sollesta Bookstore, P25,400 on credit. Received in advance from Seasons Diva Ang P250,000 for training to be conducted Summer of 2020. Partial payment to various suppliers, P 85,000 10 11 13 Paid utilities: water P4,500, electricity P12,675, PLDT P12,999 14 Paid salaries including 13th month, 255,000 17 18 Paid additional medical insurance premiums to be applied from December 2019 to November 2020, the monthly premium is P 7,000. Paid travel expenses of staff to attend the National Conference in Kuala Lumpur, P28,900. Received from Gran Malik training fees for P350,000. 19 21 22 Paid Porras Catering Services for Christmas party in the office, P35,000. Made a personal withdrawal for P50,000. This amount was used to buy her personal gifts for her staff. Paid additional gas and oil, P5,000. 26 27 Only 80% of the regular employees were paid. Total salary for the half month period was P148,000. (Unpaid salaries were not recorded)
