REQUIRED: Prepare the necessary adjusting entries on December 31, 20x2. Assume that the books have not been closed.
The following selected accounts are included in the
Debit Credit
Supplies on hand P270,000
Accrued salaries payable P150,000
Interest receivable 510,000
Prepaid insurance 9,000,000
Unearned rent -
Accrued interest payable 1,500,000
Additional information are as follows:
1. A physical count of supplies on hand on December 31, 20x2 totaled P110,000.
2. The accountant failed to adjust the Accrued Salaries Payable account. The accrued salaries payable
on December 31, 20x2 totaled P440,000.
3. The Interest Receivable account was also left unadjusted on December 31, 20x2. Accrued interest
receivable on December 31, 20x2 amounted to P435,00
4. The unexpired portions of the insurance policies totaled P6,500,000 as of December 31, 20x2.
5. A total of P2,800,000 was received on January 1, 20x2, for the rent of a building for both 20x2 and
20x3. The total amount received was recognized as revenue in 20x2.
6. The correct amount of
P300,000.
7. Prior years’ depreciation was understated by P432,000.
REQUIRED: Prepare the necessary
been closed.
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