CATANDUANES NATIONAL HIGH SCHOOL

;Senior High School Department

Virac, Catanduanes

Name: ____________________________________________ Score: ____________________

Subject: FABM1 Teacher: Shinette T. Oliveros
Section: ______________________ Date: ________________ Portfolio#12_Adjusting Entries
Instructions: The following are individual transactions unrelated to each transaction. Suppose the accounting
period follows the calendar year, prepare the journal entry upon payment and the adjusting entry at the end of
the accounting period. The business uses asset and liability methods in recording prepayments and deferrals
respectively.

Date Transaction Journal Entry Adjusting Entry

Jan 1 Paid 1-year advance rentP45,000.

Bought office supplies P18,000. One-

June 1 third remained unused at year-end.

Sept. Paid P2,400 interest on a 6-month

31 note payable.

Paid 2-year insurance premium

Oct 15 P30,000

Received telephone bill in the amount

of P1,899 and will be paid January 10
Dec 27 of the following year.

Accounts Receivable has a balance of

P300,000. It is estimated that 6% of
Dec 31 this will be uncollectible. No entry.

Acquisition Date Property Cost Scrap Value Estimated Life

May 31, 2020 Building P3,000,000 P300,000 30 years

July 1, 2022 Equipment 900,000 7,000 8 years

Sept. 15, 2023 Machinery 88,000 4,000 10 years

Instruction: Given the following cases of non-current assets, prepare the adjusting entries on December 31, 2023,
to record the depreciation expense of each property. Show your computation in good form.

Points:
Journal entries – 5 points
Adjusting Entries – 6 points
Adjusting Entries for Depreciation - 3 points
Computation of Depreciation for each non-current assets – 2 points
Total = 20 points.