O.B.

Montessori Center
SENIOR HIGH SCHOOL
FIRST SEMESTER 2023-2024
DRILLSHEET#6

ABM 1: Fundamentals of Accountancy, Business, and Management

Name: _________________________Level / Sec.: __________ Date: _______

Teacher:________________________Campus:_____________ Score:_______

Directions: Using the Trial Balance Information given below, adjust the following transactions of
ABC Food Corp. at the end of December 31, 2017.

Additional Information:

1. It is estimated that 10% of the Service Revenue is doubtful accounts.

2. The truck was purchased last November 1, 2017. It has a scrap value of 300,000 and 5 years
of useful life.
3. Mr. Lee paid 480,000 in advance for 1-year monthly food supplies which was recorded to
Unearned Service Revenue. Delivery starts on November 15, 2017.
4. ABC Food Corp. issued a check worth 100,000 on June 31, 2017. It has a 10% interest
per annum.
5. Interest from the outstanding notes payable is 50,000 at December 31, 2017. The business
intends to pay it on January 2, 2018.
6. The remaining office supplies left unused is 33% of the recorded value in the trial balance.
7. 100,000 of the outstanding Accounts Receivable bears a 15% interest which is to be paid
within by June 30, 2018. The start of the accrual is October 21.
8. Insurance bill for 10,000 was sent to the business December 31, 2017.
9. The office equipment has an estimated useful life of 3 years. It was purchased on February
28, 2017.
10. Accrued 30-day salaries are to be paid on January 20, 2018. For the 30-day salaries, the cut-
off period of January 20 pay is from December 15 to January 15. The business has 7
employees.