Question

ved on December 29 in the amount of P6,000 will be paid 9. Workers' wages accrued but were unpaid at the end of the year, P20,000. P60,000 at 10% interest per 10. Uncollectible accounts at year-end is estimated to be 5% of Accounts Receivas Sunshine Carpet Cleaners ended its first month of operations on May 31, 2019. Months financial statements will be prepared. The unadjusted account balances are as follows: which has a balance of P90,000. Allowance for Bad Debts account shows a co January 3 of the following year. balance of P1,500 before adjustment. Problem 5-3 Credit Sunshine Carpet Cleaners Trial Balance May 31, 2019 Debit Cash 8,200 Accounts Receivable 3,000 Prepaid Rent 12,000 Supplies Unused 10,000 Equipment 46,800 Accounts Payable Beam, Capital Beam, Drawing 2.000 Service Fees Earned Wages Expense 9,000 91.000 6,000 55,000 30,000 91.000 he following information is available: 1. The balance of Prepaid Rent was the amount paid on May 1 for the first four months rent. 2. Supplies on hand on May 31, P2,000. 3. The equipment purchased on May 1 has an estimated useful life of 10 years. 4. Unpaid wages on May 31, P1,500. 5. Utility services used during May were estimated at P3,000. A bill is expected early in June. 6. Fees earned for services performed but not yet billed were P5,000. quired: In general journal form, make the adjusting entries needed at May 31, 2019, 130

Answer 1

Adjusting entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Rent expense			3,000
	Prepaid rent	(12000*1/4)		3,000
	(for rent expired)
b.	Supplies expense (10000-2000)		8,000
	Supplies account				8,000
	(fo supplies used)
c.	Depreciation expense (46,800*1/120)	390
	Accumulated depreciation			390
	(for depreciation charged)
d.	Wages expenses			1,500
	Wages payable				1,500
	(for wages unpaid)
e.	Utilities expenses			3000
	Accounts payable				3000
	(for utilities expense unpaid)
f.	Accounts receivable			5,000
	Service Fees earned			5,000
	(for service fees earned)