Adjusting Entry Drill:

PATROCINIO ABAD CLAIMS ADJUSTER

TRIAL BALANCE

December 31, 2018

Cash 20,000
Accounts Receivable 50,000
Prepaid Insurance 5,000
Supplies 15,000
Office Equipment 40,000
Accumulated Depreciation –
Office equipment 20,000
Accounts Payable 30,000
Abad, capital 60,000
Service Revenues 50,000
Salaries Expenses 10,000
Rent Expenses 20,000
P160,000 P160,000

1. If on December 31, 2018, supplies on hand were P2,000, the adjusting entry would contain a
a. Credit to supplies expense for P13,000 Adjusting Entry:
b. Credit to supplies for P2,000 Supplies Expense 13,000
c. Debit to Supplies Expense for P13,000 Supplies 13,000
d. Debit to Supplies for P2,000
2. If on December 31, 2018, the insurance still unexpired amounted to P2,000, the adjusting entry
would contain a
a. Credit to Prepaid Insurance for 2,000
b. Credit to Prepaid Insurance for 3,000
c. Debit to Insurance Expense for P2,000
d. Debit to Prepaid Insurance for 3,000
3. If the estimated depreciation for office equipment were 20,000, the adjusting entry would contain a
a. Credit to Accumulated Depreciation- Office Equipment for P20,000
b. Credit to Depreciation Expense- Office Equipment for 20,000
c. Credit to Office Equipment for 20,000
d. Debit accumulated depreciation-Office Equipment for 20,000
4. If as of December 31, 2018 the rent of 10,000 for December had not been recorded or paid, the
adjusting entry would include a
a. Credit to Accumulated Rent for 10,000
b. Credit to Cash for 10,000
c. Debit to Rent Expense for 10,000
d. Debit to Rent Payable for 10,000
5. If services totaling 12,500 had been performed but not yet billed, the adjusting entry to record this
would include a
a. Credit to Service Revenue for 12,500
b. Credit to Service Revenues for 62,500
c. Credit to Unearned Service Revenue for 12,500
d. Debit to Service Revenues for 12,500