ABM 1: FUNDAMNETALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 1

UNIVERSITY OF CEBU – BANILAD CAMPUS

SENIOR HIGHSCHOOL DEPARTMENT
Miss Kimberly Nicanor

NAME: DATE:
STRAND & SECTION: SCHEDULE:
SUBJECT TOPIC: WORKSHEET #:

Write your adjusting journal entries in a word document then convert it into a PDF file.
A. Prepare the adjusting entries for the following:

1. Last September 15, 2019, EWE Co. paid insurance policy for one year amounting to ₱27,600.
This was recorded as prepaid insurance. Give the adjusting journal entries on December
2019.

2. Six months rent was paid last October 31, 2019 in the amount of ₱83,000. The asset method
was used upon payment of rent. Give the adjusting journal entries on December 2019.

3. Haven resort received ₱49,000 from Mr. Talufs last August 18, 2020 for a one week stay in
the resort from December 1-7. The receipt of cash was recorded as an unearned resort
income. Give the adjusting journal entry on December 31, 2020.

4. Received ₱90,000 last December 1, 2020 for a three month lease of the company’s parking
lot located the basement. The liability method was used in recording the lease income.
Give the adjusting journal entries on December 31,2020.

5. Last October 1, 2020 the company paid one year insurance for its building to Sure Life
Insurance Company amounting to ₱25,200. The Asset Method was used to record the
insurance payment. Give the adjusting journal entry on December 2020.

6. On March 31, 219 the company leased an office space in Ortigas. It received ₱264,000 for
annual rent and credited the amount to Unearned Rent. Give the adjusting journal entry on
November 2019.

7. Last October 31, 2020 the company signed Shizet Advertising for a three-year advertising
campaign with the aim to promote its services for the next three years. In line with this, the
company paid ₱1,800,000 for the contract. Give the adjusting journal entry on December
2020.

8. Supplies purchased during the year 2019 amounted to ₱18,000, of which 25% remained on
hand at the end of the year.
 ABM 1: FUNDAMNETALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 1
UNIVERSITY OF CEBU – BANILAD CAMPUS
SENIOR HIGHSCHOOL DEPARTMENT
Miss Kimberly Nicanor

9. On Aug. 1, 2021 a ₱180,000 premium was paid on a one-year insurance policy. The amount
of the premium was debited to Insurance Expense. Give the adjusting journal entries on
December 2021.

10. Received an ₱180,000 cash advance for a contract to provide services in the future. The
contract required a 1-year commitment, starting April 1, 2021. Give the adjusting entry on
October 31 of the same year.

Write your adjusting journal entries in a word document then convert it into a PDF file.
B. Preparation of Adjusting Journal Entries

The following are some of the transactions made by Timoleon Lianza Cleaners during 2019:

April 1 Acquired cleaning supplies in the amount of ₱260,000. A count of the supplies
on December 31, 2019 amounted to ₱110,000.

Aug. 1 Received ₱360,000 from Cebu Company for cleaning janitorial uniforms over the
next 3 years.

Nov. 1 Paid ₱240,000 for annual rent.

Required:
a) Assume that Lianza records these transactions using the following accounts
(Asset&Liability Method), record the adjusting entries on December 31, 2019:
1) Office Supplies
2) Prepaid Rent
3) Unearned Cleaning Revenues

b) Now, assume that Lianza records these transactions using the following accounts
(Expense Method&Income Method), what will be the adjusting entries on December 31,
2019?
1) Office Supplies Expense
2) Rent Expense
3) Cleaning Revenues