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    Journal Entries and Adjusting Entries

    Uploaded by

    Garp Barroca
    The document records journal entries for Entity A from January 1-31. It records various cash transactions including the owner's initial investment, purchases of equipment, inventory, and supplies. It also records sales, collections, expenses paid, and owner's drawings. Adjusting entries are made at the end of January to allocate prepaid rent, record depreciation, expense supplies used, and estimate doubtful accounts.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Journal Entries and Adjusting Entries

    Uploaded by

    Garp Barroca
    52 views3 pages
    The document records journal entries for Entity A from January 1-31. It records various cash transactions including the owner's initial investment, purchases of equipment, inventory, and supplies. It also records sales, collections, expenses paid, and owner's drawings. Adjusting entries are made at the end of January to allocate prepaid rent, record depreciation, expense supplies used, and estimate doubtful accounts.

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    The document records journal entries for Entity A from January 1-31. It records various cash transactions including the owner's initial investment, purchases of equipment, inventory, and supplies. It also records sales, collections, expenses paid, and owner's drawings. Adjusting entries are made at the end of January to allocate prepaid rent, record depreciation, expense supplies used, and estimate doubtful accounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    52 views3 pages

    Journal Entries and Adjusting Entries

    Uploaded by

    Garp Barroca
    The document records journal entries for Entity A from January 1-31. It records various cash transactions including the owner's initial investment, purchases of equipment, inventory, and supplies. It also records sales, collections, expenses paid, and owner's drawings. Adjusting entries are made at the end of January to allocate prepaid rent, record depreciation, expense supplies used, and estimate doubtful accounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    1.

    Prepare journal entries

    Jan 1 Mr. A, the sole owner of Entity A, Cash in bank 1,300,000


    invested ₱1,300,000 to the MR.A,CAPITAL 1,300,000
    business.

    Jan 2 Equipment costing ₱200,000 was Equipment 200,000


    acquired for cash. Cash in bank 200,000

    Jan 3 Inventory costing ₱680,000 Purchases 680,000


    was acquired on credit. Accounts payable 680,000

    Jan 4 Purchased office supplies for cash, Office supplies 6,500


    P 6,500. Cash in bank 6,500

    Jan 5 Inventory costing ₱400,000 Accounts receivable 750,000


    was sold for ₱750,000 on Sales 750,000
    credit.

    Jan 6 Received goods returned by Sales returns 60,000


    customer sold on January 5, P Accounts receivable 60,000
    60,000.

    Jan 7 Returned goods purchased on Accounts payable 30,000


    January 3, P 30,000. Purchase returns 30,000

    Jan 8 Accounts payable of Accounts payable 200,000


    ₱200,000 was settled. Cash in bank 200,000

    Jan 9 Accounts receivable of Cash in bank 400,000


    ₱400,000 was collected. Accounts receivable 400,000

    Jan 10 Utilities expense of ₱35,000 Utilities expense 35,000


    was paid. Cash in bank 35,000

    Jan 11 Owner’s drawings during the MR.A,DRAWING 40,000


    period totaled ₱40,000. Cash in bank 40,000

    Jan 15 Paid rent for 4 months in Prepaid rent 80,000


    advance, P 80,000. Cash in bank 80,000

    Jan 30 Salaries expense of ₱250,000 was Salaries expense 250,000


    paid. Cash in bank 250,000
    Adjusting Entries:

    January 31 Rent Expense 10,000


    Prepaid Rent 10,000
    31. Depreciation Expense 12,000
    Accumulated Depreciation. 12,000
    31. Office Supplies Expense 4,333
    Office Supplies 4,333
    31. Doubtful Account 11,600
    Estimated Doubtful Accounts 11,600

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