The Trial Balance of Jesus Jose Mini Mart & General Merchandise is prepared by the bookkeeper last December 31, 2019. (60 minutes) Debit Credit Cash in bank 75,000 Accounts Receivable 100,000 Notes Receivable 200,000 Merchandise Inventory 50,000 Delivery Truck 300,000 Display Cabinets 100,000 Accounts Payable 45,000 Notes Payable 150,000 Jesus Jose Capital 223,000 Sales 500,000 Sales discounts 1,000 Salaries and wages 50,000 Store supplies expense 7,000 Maintenance expense 15,000 Now that you have mastered the lesson, are you ready to summarize? 14 Utilities expenses 20,000 ------------ ------------- Totals 918,000 918,000 ======= ======== Notes for adjustment (First: Assume the books are still open; Second: assume that the books are closed) 1. The delivery truck is not provided with depreciation. It was purchased last April 1, 2019. The estimated life is 20 years with no residual value. It is the policy of the company to depreciate its assets using the straight-line method. 2. The display cabinet was purchase January 1, 2019. Estimated life is 5 years. Straight line method is to be used. 3. Cash sales amounting to PHP56,000 last December 31, 2019 was unrecorded. 4. Salaries and wages are overstated by PHP10,000. 5. Monthly amortization on the notes payable amounting to PHP10,000 was paid by check during December but not yet recorded. Direction: Answer the following questions in a separate bond paper. Show the entry made, should be entry and adjusting entry. 1. What is the adjusting entry for delivery truck? 2. What is the adjusting entry for display cabinet? 3. What is the adjusting entry for the unrecorded sales? 4. What is the adjusting entry for overstated salaries and wages? 5. What is the adjusting entry for the unrecorded monthly amortization payment?
The
the bookkeeper last December 31, 2019. (60 minutes)
Debit Credit
Cash in bank 75,000 Accounts
Receivable 100,000
Notes Receivable 200,000 Merchandise Inventory 50,000
Delivery Truck 300,000
Display Cabinets 100,000
Accounts Payable 45,000 Notes Payable 150,000
Jesus Jose Capital 223,000
Sales 500,000
Sales discounts 1,000
Salaries and wages 50,000
Store supplies expense 7,000
Maintenance expense 15,000
Now that you have mastered the lesson, are you ready to summarize?
14
Utilities expenses 20,000
------------ -------------
Totals 918,000 918,000
======= ========
Notes for adjustment (First: Assume the books are still open; Second: assume that
the books are closed)
1. The delivery truck is not provided with depreciation. It was purchased last
April 1, 2019. The estimated life is 20 years with no residual value. It is the policy
of the company to
display cabinet was purchase January 1, 2019. Estimated life is 5 years.
line method
3. Cash sales amounting to PHP56,000 last December 31, 2019 was unrecorded.
4. Salaries and wages are overstated by PHP10,000.
5. Monthly amortization on the notes payable amounting to PHP10,000 was paid by
check during December but not yet recorded.
Direction: Answer the following questions in a separate bond paper. Show the entry
made, should be entry and
1. What is the adjusting entry for delivery truck?
2. What is the adjusting entry for display cabinet?
3. What is the adjusting entry for the unrecorded sales?
4. What is the adjusting entry for overstated salaries and wages?
5. What is the adjusting entry for the unrecorded monthly amortization payment?
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