Problem 5: Tabar Company uses calendar year accounting period. The following transactions occurred during the year: a. On January 1, 2030 the balance of supplies account is P31,250. During the year, the total supplies purchased amounted to P125,000 initially recorded as asset. On December 31, 2030, the total unused supplies are P11,000. b. The company received billing from Meralco for electricity charges for the month of December 2030 totaling P14,000. The bill will be due on January 10, 2031. C. The entity received payment from a tenant amounting to P18,000 for five- months' rent on November 30, 2030. The company credited rent income upon receipt of cash. d. The unadjusted trial balance of the company shows office supplies amounting to P9,000. The used supplies amounted to P1,000. e. The company acquired equipment on May 1, 2030 amounting to P290,000- It has estimated that the useful life of the equipment is 10 years with salvage value of P34,000.

Problem 5: Tabar Company uses calendar year accounting period. The following transactions occurred during the year: a. On January 1, 2030 the balance of supplies account is P31,250. During the year, the total supplies purchased amounted to P125,000 initially recorded as asset. On December 31, 2030, the total unused supplies are P11,000. b. The company received billing from Meralco for electricity charges for the month of December 2030 totaling P14,000. The bill will be due on January 10, 2031. C. The entity received payment from a tenant amounting to P18,000 for five- months' rent on November 30, 2030. The company credited rent income upon receipt of cash. d. The unadjusted trial balance of the company shows office supplies amounting to P9,000. The used supplies amounted to P1,000. e. The company acquired equipment on May 1, 2030 amounting to P290,000- It has estimated that the useful life of the equipment is 10 years with salvage value of P34,000.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 32E

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