Problem 1 The J. Reyes Company presented the following information pertaining to accounts that will need adjustments for its Nov. 30, 2017 year-end financial statements

a. On Oct. 1, 2017, J. Reyes Company paid P10,800 for 6 months insurance

premiums.

b. The balance in the ledger account Office Supplies amounted to P32,000. A count

of the office supplies on Nov. 30, 2017 totaled P12,800.

C. J. Reyes Company received P22,800 on Nov. 1, 2017 from a customer for services

to be rendered during the months of November, December January, and

February

dJ.Reyes acquired the Office Equipment costing P352,800 on Apr. 1, 2017. The

equipment is expected to last 5 years after which it will be worthless

e. Nov. 30, 2017 is a Thursday and that J. Reyes pays its employees a total of

P87,500 on Fridays.

Required:

1. Prepare the adjusting entries

2. Prepare the Dec. 1, 2017 entry to record the payment of the salaries

Problem 2

Presented below, together with account numbers, is the unadjusted trial balance of R.

Ragasa Travel Agency for the year ended December 31, 2002

R. RAGASA TRAVEL AGENCY

UNADJUSTED TRIAL BALANCE

DECEMBER 31, 2002

Account No. Accounts Title Debit Credit

110 Cash 126,000

120 ACCOunt Receivable 645,000

130 Prepaid Rent 360,000

140 Office Supplies 63,000

150 Furniture 2,175,000

155 Accumulated Depreciation 435,000

210 Notes Payable 900,000

220 Accounts Payable 285,000

230 Salaries Payable ? ?

240 Interest Payable ? ?

310 Ragasa, Capital 1,680,000

320 Ragasa, Withdrawal 1,200,000

410 T ravel Revenues 5,133,000

510 Salaries Expense 3,711,000

520 Rent Expense ? ?

530 Office Supplies Expense ? ?

540 Depreciation Expense ? ?

550 Interest Expense ? ?

560 Miscellaneous EXpense 93,000

Total 8,433,000 8,433,000

Information pertaining to Ragasa's accounts is as follows:

a. On Nov.1 2002, Ragasa paid Vigan Rental Agency P360,000 for six month's rent

on the office building commencing that date.

b. Office supplies on hand at Dec. 31, 2002 amounted to P27,000.

C. Depreciation expense for the furniture amounted to P75,000 for the year

d. At Dec.31,2002, P105,000 salaries have accrued.

e. The P900,000 note payable was issued on Oct.1, 2002. It will be repaid in 12

months together with interest at an annual rate of 24%

Required:

1.Prepare the adjusting entries

2.Prepare unadjusted trial balance