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Prepare the adjusting entry for NIKKI & JOHN Waters under each of the following for the year ending Dec 31, 2018. 1. Paid P48,000 for
Prepare the adjusting entry for NIKKI & JOHN Waters under each of the following for the year ending Dec 31, 2018. 1. Paid P48,000 for a 1-year fire insurance policy to commence on Sept. 1, 2018. 2. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1, 2018. 3. Paid P320,000 cash to purchase a delivery van on Jan. 1. The van was expected to have a 3-year life and a P20,000 salvage value. 4. Received an P36,000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1, 2018. 5. Purchased P12,800 of supplies on account. At years end, P1,500 of supplies remained on hand. 6. Invested P180,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May 1 and carried 1-year term to maturity. 7. Paid 152,000 cash in advance on Sept 1 for a 1-year lease on office space.
Prepare the adjusting entry for NIKKI & JOHN Waters under each of the following for the year ending Dec 31, 2018.
1. Paid P48,000 for a 1-year fire insurance policy to commence on Sept. 1, 2018.
2. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1, 2018.
3. Paid P320,000 cash to purchase a delivery van on Jan. 1. The van was expected to have a 3-year life and a P20,000 salvage value.
4. Received an P36,000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1, 2018.
5. Purchased P12,800 of supplies on account. At years end, P1,500 of supplies remained on hand.
6. Invested P180,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May 1 and carried 1-year term to maturity.
7. Paid 152,000 cash in advance on Sept 1 for a 1-year lease on office space.
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