Adjusting Entries-Owwsic Enterprise

Dec 31,2020
JOURNAL Page 1

Date Particulars Pr Dr. Cr

.1 31 Cash in Bank- Union Bank P 100,000

F. Herrera, Capital P100,000
To record the transfer from personal funds from
F.Herrera to Union bank payroll acct amounting to
P 30,000 - Oct. 9
P 32,000- Non.9
P 38,000- Dec. 3

2 31 Office Supplies 6,000

Service Income 3,000
Cash 3,000
To record the use up of P6,000 supplies , 50% was
materials consumed in provision of Service to Customers

3 28 Equipment 1,232,000

Accounts Payable 1,100,000

Deferred Input Vat 132,000
To record the purchase of equipment on account , VAT
inclusive

4 31 Furniture and Fixture 113,000

Cash in Bank- BDO 113,000
To record the delivery of newly acquired furniture and fixture
from F. Herrera Mansion to office for business use

5 31 Gen and admin-Salaries and wages 5,000

Salaries and wages 5,000
Cash in Bank- Union bank 10,000
To record 50% of salaries paid to employees which is
not directly attributable to the provision of service.

6 31 Depreciation- Building 5,333.33

Depreciation- Equipment 233.33
Accumulated depreciation- Building 5,333.33
Accumulated depreciation-Equipment 233.33
To record the depreciation of equipment (7,000 with 5 yrs life t
and building (800,000 with 25yrs life and ) in provision of
service

7 31 Withholding tax Payable 68,000

Cash in bank- BDO 68,000

To record Payment for withholding taxes and VAT during the

month of November and December were not taken up in the
books

8 31 Interest Expense 10,273.97

Cash in bank- BDO 10,273.97
To record Interest on loans is computed using 365 day
(1,000,000 x6.25% /365days x 60 days
9 31 Doubtful Accounts 11,908.80
Allowance for Doubtful accounts 11,908.80
To record 2% of ending balance of accounts receivable is
estimated to be uncollectible ( 595,440.00 x 2%)

10 31 Cash in bank- BDO 814.00

Interest Income 814.00
To record t Interest income earned from cash deposited with
BDO amounting to ₱814

11 31 Utilities Expense 6,956.25

Cash in Bank - BDO 6,956.25
To record Utilities for the month of December is
estimated to be the 150% of the average consumption of
the two preceding months ( Oct 5000 + Nov ₱4,275) /2
= 4637.50 *150%= P 6,956.25

12 31 Representation and Entertainment 3,418.00

Cash in Bank- BDO
To record the Unrecorded transaction included 3,418.00
payments for the refreshments to entertain the convoy of
Mr. Jacob Buenaventura, a potential customer. Total
amount spent is ₱3,418.l

13 31 Equipment 30,000
Cash in Bank 50,000
Cash in bank- BDO 30,000
Gain on Sale of Equipment 50,000
To record e last unrecorded transaction pertains to a purchase
of equipment made on December 1 for ₱30,000 net of VAT. The
purchase was unrecorded because three working days after the
equipment was sold for cash,₱50,000 net of VAT.