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    Analysis Using T-Accounts

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    Chris Aruh Borsalina
    The document discusses analyzing accounting transactions using T-accounts. It provides examples of adjusting entries that affect both balance sheet and income statement accounts, such as prepaid rent expense increasing prepaid rent asset and decreasing rent expense. It then works through examples calculating accounting adjustments for various accounts, such as calculating cash payments for prepaid rent based on beginning and ending balances, calculating supplies expense based on beginning balance and purchases, and calculating service revenue and accrued liabilities adjustments.

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    Analysis Using T-Accounts

    Uploaded by

    Chris Aruh Borsalina
    151 views10 pages
    The document discusses analyzing accounting transactions using T-accounts. It provides examples of adjusting entries that affect both balance sheet and income statement accounts, such as prepaid rent expense increasing prepaid rent asset and decreasing rent expense. It then works through examples calculating accounting adjustments for various accounts, such as calculating cash payments for prepaid rent based on beginning and ending balances, calculating supplies expense based on beginning balance and purchases, and calculating service revenue and accrued liabilities adjustments.

    Original Title

    ANALYSIS USING T-ACCOUNTS

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    The document discusses analyzing accounting transactions using T-accounts. It provides examples of adjusting entries that affect both balance sheet and income statement accounts, such as prepaid rent expense increasing prepaid rent asset and decreasing rent expense. It then works through examples calculating accounting adjustments for various accounts, such as calculating cash payments for prepaid rent based on beginning and ending balances, calculating supplies expense based on beginning balance and purchases, and calculating service revenue and accrued liabilities adjustments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    151 views10 pages

    Analysis Using T-Accounts

    Uploaded by

    Chris Aruh Borsalina
    The document discusses analyzing accounting transactions using T-accounts. It provides examples of adjusting entries that affect both balance sheet and income statement accounts, such as prepaid rent expense increasing prepaid rent asset and decreasing rent expense. It then works through examples calculating accounting adjustments for various accounts, such as calculating cash payments for prepaid rent based on beginning and ending balances, calculating supplies expense based on beginning balance and purchases, and calculating service revenue and accrued liabilities adjustments.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    ANALYSIS

    USING
    T-ACCOUNTS
    Review on Selected Accounting
    Topics
    ANALYSIS USING T-ACCOUNTS

    Each adjusting entry affects a balance sheet account (an asset or a liability account) and
    an income statement account (an income or an expense account).
    For example:
    + Rent expense is related to prepaid rent
    + Supplies expense to supplies
    + Service revenues to unearned service revenues
    + Salaries expense to salaries payable
    + Interest income to interest receivable
    PREPAID EXPENS E/S UPPLIES (AS S ET)
    Beg. Bal. xx xx Expens ed portion of prepaid expens e/s upplies cons umed
    Cas h payments for prepaid expens e/s upplies xx xx End. Bal.

    Total debit XX XX Total credit


    PREPAID EXPENSE/SUPPLIES (AS SET)
    Beg. Bal. Expens ed portion of prepaid expens e/s upplies cons umed
    Cas h payments for prepaid expens e/s upplies End. Bal.

    Total debit Total credit

    The income statement for the Seulgi Company showed rent expense of
    P1,030,000. The related balance sheet account balances at year end
    2022 and 2023 are as follows:
    December 31, 2023 December 31, 2022
    Prepaid rent P450,000 P560,000

    Determine the amount of cash payments related to prepaid rent for


    2023.
    PREPAID EXPENSE/SUPPLIES (AS SET)
    Beg. Bal. Expens ed portion of prepaid expens e/s upplies cons umed
    Cas h payments for prepaid expens e/s upplies End. Bal.

    Total debit Total credit

    The adjusted trial balance of Yeri Company as at December


    31, 2022 and November 30, 2022 include these amounts:
    December 31, 2022 November 30, 2022
    Supplies P21,000 P15,000

    Analysis of accounts revealed that the total supplies purchased for


    December is P84,000. Compute the amount of supplies expense to be
    reported on the December 31, 2022 income statement.
    UNEARNED S ERVICE REVENUES (LIABILITY)
    Income earned portion of unearned s ervice revenues xx xx Beg. Bal.
    End. Bal. xx xx Cas h received in advance for s ervice revenues

    Total debit xx xx Total credit


    UNEARNED S ERVICE REVENUES (LIABILITY)
    Income earned portion of unearned s ervice revenues Beg. Bal.
    End. Bal. Cas h received in advance for s ervice revenues

    Total debit Total credit

    The adjusted trial balance of Hoshi Company as at December


    31, 2022 and November 30, 2022 include these amounts:
    December 31, 2022 November 30, 2022
    Unearned revenues P142,000 P163,000

    Analysis of accounts revealed that the cash received in advance for service
    revenues for December is P1,800,200. Compute the amount of service
    revenues to be reported on the December 31, 2022 income statement.
    ACCRUED LIABILITIES
    P ayment of accrued liabilities xx xx Beg. Bal.
    End. Bal. xx xx Expens e related to accrued liabilities

    Total debit xx xx Total credit


    ACCRUED LIABILITIES
    P ayme nt of a cc rue d lia bilitie s Be g. Ba l.
    End. Ba l. Expe ns e re la te d to a c crue d lia bilitie s

    Tota l de bit Total c re dit

    The following amounts are taken from the records of Wonwoo


    Company:
    December 31, 2022 November 30, 2022
    Accrued liabilities P440,000 P375,000

    During December, expenses related to accrued liabilities were


    P305,000. Compute the amount of cash payments related to
    accrued liabilities.
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