Quiz 1 journal entries

Question 1

Bought supplies in cash amounting to ₱ 7,000. Asset account was debited at the time of purchase. It was
ascertained that ₱ 4,500 worth of supplies were on hand at year-end

Answer 1

original entry

Supplies 7000
cash 7000
To record supplies bought with cash

Adjusting

Supplies expense 2500
supplies 2500
To record supplies used

Question 2

Paid the annual insurance premium of ₱ 5,600. A nominal account was debited upon prepayment. At the end of
the accounting period, ₱ 1,200 had expired

Answer 2

original

Insurance expense 5,600
cash 5,600
pain annual insurance premium

Adjusting

Prepaid insurance 4,400
insurance expense 4,400
to record adjustment for insurance premium

Question 3

Received ₱ 8,000 from a tenant representing advance rental. A liability account was credited upon receipt of cash.
At the end of the accounting period, ₱ 5,000 was earned

Answer 3

original

cash 8,000
unearned rent revenue 8,000
to record advanced rental received

adjusting

unearned rent revenue 5,000
rent revenue 5,000
rent earned during the period

Question 4

Prepaid an advertisement for ₱ 12,000. Asset account was debited at the time of disbursement. At the end of the
accounting period, ₱ 8,000 has expired

Answer 4

original

prepaid advertising 12,000
cash 12,000
to record prepaid advertisement

adjusting

advertising expense 8,000
prepaid advertising 8,000
to record adjustment for prepaid advertising

Question 5

Journalize the appropriate adjusting entries as of December 31, the end of the fiscal year, for this case:

Trial Balance data:
Rent Revenue ₱ 30,000
Commissions Revenue ₱ 4,500

Additional Information:
Unearned Commission ₱ 2,500
Rental Earned ₱ 10,000

Answer 5

adjusting

rent revenue 20,000
unearned rent revenue 20,000
to record unearned rent revenue

adjusting

adjusting

commiss. revenue 2,500 unearned commiss. revenue 2,500
to record unearned commissions revenue