Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with problem 4, 5, 6 with concrete explanation pls...... Also, im looking for an accounting expert tutor outside Coursehero message me at

Please help me with problem 4, 5, 6 with concrete explanation pls...... Also, im looking for an accounting expert tutor outside Coursehero message me at b..4@gmail.com if you're interested

image text in transcribed
Problem #4 Accrual of Interest Expense Kristine June Uy Forwarders borrowed P600,000 from the bank on Sept. 1, 2019. The note carried an 8% annual rate of interest and was set to mature on Feb. 28, 2020. Interest and principal were paid in cash on the maturity date. Required: What was the amount of interest expense paid in cash in 2019? 2. What was the amount of interest expense recognized on the 2019 income statement? 3. What was the amount of total liabilities shown on the 2019 balance sheet? 4. What was the total amount of cash that was paid to the bank on Feb. 28, 2020 for principal and interest? 5 . What was the amount of interest expense shown on the 2020 income statement? Problem #5 Accrual of Interest Revenue Reynaldo San Mateo, an angel investor, decided to invest P1,200,000 excess cash in a certificate of deposit on April 1, 2018. The certificate carried an 8% annual rate of interest and a 1-year term to maturity. Interest will be withdrawn monthly (disregard tax effects). Required: 1. What amount of income will be recognized for the year ending Dec. 31, 2018? 2. What is the effect of the adjusting entry on the accounting equation? 3. What amount of cash will be collected for interest revenue in 2018? 4. What is the amount of interest receivable as of Dec. 31, 2018? . What amount of cash will be collected for interest revenue in 2019? 6. What amount of interest revenue will be recognized in 2019? . What is the amount of interest receivable as of Dec. 31, 2019? Problem #6 Adjusting Entries and Accounting Policy The following are some of the transactions made by Rosemarie Jacalan Cleaners during 2019: Apr. 1 Acquired cleaning supplies in the amount of P260,000. A count of the supplies on Dec. 31, 2019 amounted to P110,000. Aug. 1 Received P360,000 from Cebu Manpower for cleaning janitorial uniforms over the next 3 years. Nov. 1 Paid P240,000 for annual rent. Required: 1. Assume that Jacalan records these transactions using the following accounts, record the adjusting entries on Dec. 31, 2019: Office Supplies Prepaid Rent Unearned Cleaning Revenues 2. Now, assume that Jacalan records these transactions using the following accounts, what will be the adjusting entries on Dec. 31, 2019? Office Supplies Expense Rent Expense Cleaning Revenues

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions