topic 9

En The following data for adjustments were taken from the records of Joan Constantino the owner manager of Joan's Apartelle of General Santos City. WO 1 2. 3. Rental collection was received in advance, P7,600. An income account was credited. At the Salaries of employees were unpaid, P4,500. end of the period, P1,600 is not yet earned. Paid an insurance premium amounting to P8,000. Expense Method was used. At the end of the period, P3,400 has actually expired. An Interest on Notes Payable was received in advance in the amount of P2,200. Liability account was credited. At the end of the period, P1,800 is actually earned. A purchase of supplies was debited to an asset account, P3,800. P1,200 cost of supplies were actually on hand when the period ended. 4. 5. Required: S 1. Prepare adjusting entries 2. Prepare reversing entries if deemed necessary 9-7 The following adjusting entries were prepared at the end of the accounting period. (Explanation are intentionally omitted) ADJUSTING ENTRIES REVERSING ENTRIES 1. P 750 Accrued Interest Income Interest Income P 750 2. Prepaid Insurance Insurance Expense P 500 P 500 3. Rent Expense Accrued Rent Expense P1,300 P1,300 4. Rent Income Unearned Rent Income P1,800 P1,800 5. Rent Expense Prepaid Rent P 650 P 650 6. Salaries and Wages Accrued Salaries and Wages P1,000 P1,000