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    Accounting Problems and Exercises3 Case 4

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    Mario Agoncillo
    Hilltop Realty needs to make adjusting entries to properly record transactions and account balances at year-end. The adjustments include recognizing expired insurance of P3,400 as an expense, estimating depreciation of P3,000 for office equipment and P5,000 for the automobile, recognizing P4,500 of management fees as earned revenue that was previously unearned, and accruing P1,500 of wages expense for work performed at year-end.

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    Accounting Problems and Exercises3 Case 4

    Uploaded by

    Mario Agoncillo
    119 views1 page
    Hilltop Realty needs to make adjusting entries to properly record transactions and account balances at year-end. The adjustments include recognizing expired insurance of P3,400 as an expense, estimating depreciation of P3,000 for office equipment and P5,000 for the automobile, recognizing P4,500 of management fees as earned revenue that was previously unearned, and accruing P1,500 of wages expense for work performed at year-end.

    Original Description:

    Sample Accounting Exercises

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    Hilltop Realty needs to make adjusting entries to properly record transactions and account balances at year-end. The adjustments include recognizing expired insurance of P3,400 as an expense, estimating depreciation of P3,000 for office equipment and P5,000 for the automobile, recognizing P4,500 of management fees as earned revenue that was previously unearned, and accruing P1,500 of wages expense for work performed at year-end.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    119 views1 page

    Accounting Problems and Exercises3 Case 4

    Uploaded by

    Mario Agoncillo
    Hilltop Realty needs to make adjusting entries to properly record transactions and account balances at year-end. The adjustments include recognizing expired insurance of P3,400 as an expense, estimating depreciation of P3,000 for office equipment and P5,000 for the automobile, recognizing P4,500 of management fees as earned revenue that was previously unearned, and accruing P1,500 of wages expense for work performed at year-end.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    ADJUSTING ENTRIES

    The Hilltop Realty operates with annual accounting period that ends each December 31. At the end of this year, a
    trial balance of the concern appears as follows:

    HILLTOP REALTY
    Trial Balance
    December 31, 2013

    Cash 14,450
    Accounts Receivable 9,800
    Prepaid Insurance 5,400
    Office Equipment 37,500
    Accumulated Depreciation, Office Equipment 6,500
    Automobile 57,650
    Accumulated Depreciation, Automobile 9,500
    Accounts Payable 11,000
    Unearned Management Fees 5,500
    C. De Leon, Capital 50,000
    C. De Leon, Drawing 9,000
    Sales Commissions Earned 156,500
    Office Salaries Expense 75,000
    Advertising Expense 7,500
    Rent Expense 15,000
    Telephone Expense 4,500
    Utility Expense 3,200
    ---------- -----------
    239,000 239,000
    ====== =======

    Adjustment Data:
    1. Expired insurance during the year, P3,400.
    2. Estimated depreciation of office equipment P3,000, of automobile P5,000
    3. An amount of P4,500, received from J. Ilagan and was credited to Unearned Management Fees account, is an
    advanced payment for management services for six months.
    4. On December 31, five-days’ wages at P300 per day have accrued.
    5. Advertising expense represents a 5-month advertising beginning on November 1 of the current year.

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