Ramon Magsaysay Memorial Colleges

General Santos City

College of Business Education

Accounting 101 – Financial Reporting
Adjusting Journal Entries

Name: ______________________________________ Date: _______________ Score: ______

Prepared by: Norma Salise Second Semester – School Year 2022 – 2023

Instruction: In a clean 1 whole sheet of yellow paper, write your name then prepare the
necessary adjusting entries based on the situations as listed below. Take a picture of your
answer then submit it in the LMS. Bring also your hard copy of your answer on Monday, March
20, 2023

Major assumption: The last day of the accounting period is December 31.

1. Three days salaries are unpaid as at December 31. Salaries are P75,000 for a five day
work week.
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2. On August 1, a P18,000 premium was paid on a one – year insurance policy. The
amount of the premium was debited to Prepaid insurance.
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3. Before adjustments, the Supplies account has a balance of P35,400. The count of
supplies on hand amounted to 22,300.
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4. Office equipment was purchased on March 1 for P270,000. The expected life of the
equipment is 8 years.
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5. Borrowed P100,000 by issuing a one – year note with 7% annual interest to Century
Savings Bank on October 1.
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6. Paid P160,000 cash to purchase a delivery van (surplus) on January 1. The van was
expected to have a three year life and a P10,000 salvage value. Depreciation is
computed on a straight line basis.
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7. Paid a 24,000 for a 1-year fire insurance policy to commence on September 1. The
amount of premium was debited to prepaid insurance.
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8. Received an P18,000 cash advance for a contract to provide services in the future. The
contract required a one year commitment, starting April 1.
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9. Purchased P6,400 of supplies on account. At year’s end, P750 of supplies remained on

hand.
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10. Paid P78,000 cash in advance on September 1 for a one year lease on office space.
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11. Payment for repairs was erroneously debited to building account, P20,000.
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12. Rendered service for cash amounting to P102,300, but made no record of the
transaction.
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13. Depreciation for the month was omitted, P12,500.

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14. Recorded collection of an account receivable by debiting cash and crediting revenue
account, P25,000.
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15. A P900,000 note payable was issued on October 1, 2007. It will be repaid in 12 months
together with interest at an annual rate of 24%.
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Good Luck!!!