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Adjusting Entries

PROBLEM 2 The accounts and transactions of Haydee Kalaw, Systems Consultant, for the month of April are shown below: April 2 Invested P150,000 in cash, (P100,000 from personal savings and P50,000 from a bank loan) to start the business. 3 Paid P15,000 for the office's rent (2-months advanced, 1-month deposit). 4 Purchased a 1-year insurance for P8,000 5 Bought office furniture for P26,000 in cash. 5 Purchased office supplies for P6,200. 7 Performed services for P22,750 in cash. 9 Performed services for P10,500 on account. 10 Bought a desktop computer for P55,000; paid 50% down, balance in 30 days. 12 Acquired a personal copier for P39,500 on credit; paid P9,500 cash, balance due in 15 days. 13 Received P7,000 from credit clients. 14 Bought additional office chairs for P8,000 on credit. 15 Issued a check for P32,500 to pay for salaries. 17 Performed services for P10,250 in cash. 19 Performed services for P11,500 on account. 20 Collected P6,000 on accounts receivables. 21 Issued a check for P4,000 in partial payment of the amount owed for the office chairs. 23 Haydee issued a check for P10,000 to pay personal expenses. 24 Paid miscellaneous expenses for P325.25 25 Purchased additional supplies for P2,400. 26 Performed services for P11,500 on account. 27 Paid P2,250 for the monthly telephone bill. 27 Paid P2,550 for the monthly electric bill. 28 Issued a check for P28,400 to pay for salaries. REQUIRED: (USE MS EXCEL) 1. Record the transactions for the month of April in a journal and post the transactions to the ledger. 2. Journalize the adjusting entry on the following events and in relation to the transactions above a. Insurance cost is recognized monthly b. Salaries paid to employees form part of the cost of service. c. The advanced payment of rent applies. d. The office furniture has a useful life of five years. e. The desktop computer has useful life of three years. f. Personal copier has an estimated output in its entire life of 120,000 pages. The machine indicates 3,000 pages used in April 6. The bank loan is payable in six equal payments plus 8% interest. h. Salaries accrued as at April 30, P6,560. Supplies on hand at the end of the month amounts to P2,575

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