1.

Taylor Folk Realty Co pays weekly salaries of P13,750 on Friday for a five day week
ending on that day. Journalize the necessary adjusting entry at the end of the
accounting period, assuming that the period ends on (a) Tuesday (b) Wednesday.

a. Salaries expense 5,500

Salaries payable 5,500

b. Salaries expense 8,250

Salaries payable 8,250

2. At the end of the current year, P7,260 of fees have been earned but hove not been
billed to clients. Give the adjusting journal entry to record the accrued income
Accrued service fee 7,260
Service fee 7,260

3. Wages accrued but not paid at December 31 are P1,800.

Wages expense 1,800
Wages payable 1,800

4. Fees accrued but unbilled at December 31 are P10,600

Accrued Service fee 10,600
Service fee 10,600

5. The company has an outstanding 12% note payable dated December 1, 2005
amounting to P50,000. the principal and interest are payable on January 30, 2006.
Give the adjusting entry.

(50,000 x .12 x 30/360) = 500

Interest expense 500
Interest payable or accrued interest expense 500

6. A company received a 90 day 12% note dated November 16, 2005 amounting to
P100,000. Give the adjusting journal entry on December 31.

(100,000 x .12 x 45/360) = 1,500

Interest receivable or accrued interest income 1,500
Interest income 1,500

7. The notes receivable account has a balance of P50,000 representing a 90 day, 6%

note received on December 1. The interest collectible upon maturity. Give the
adjusting journal entry. How much is the maturity value of the note?

(50,000 x .06 x 30/360) = 250

Interest receivable or accrued interest income 250
Interest income 250

Maturity value
(50,000 x .06 x 90/360) = 750
50,000 +750 = 50,750
8. Unpaid salaries as of December 31 amounted to P7,500.
Salaries expense 7,500
Salaries payable 7,500

9. The del Pilar Enterprises pays its weekly salary o fP50,400 for a 6 day work ending
on a Saturday. If December 31 falls on a Thursday, how much is the accrued
expense?
(50,400/6 x 4 ) =33,600
Salaries expense 33,600
Salaries payable 33,600

10.On September 1, 2005, Silang Trading issued a note to Dar east Bank in the amount
of P500,000. The note had an interest rate of 12% and had a term of one year. On
December 31, Silang Trading should record accrued interest of ________. How
much is the maturity value of the note?

(500,000 x .12 x 4/12) = 20,000 accrued interest

Maturity value
(500,000 x .12) = 60,000
500,000 + 60,000 = 560,000

11.The company has a P90,000 10% note receivable outstanding at December 31. The
note is dated December 1. What is the adjusting entry on December 31?
(90,000 x .1 x 30/360) = 750
Interest receivable 750
Interest income 750

12.Before any adjustments were made, the net income of Aguinaldo Co. was
P2,000,000. However, accrued interest on notes payable of P15,000 need to be
recorded. After the adjusting entry was made, what is the adjusted net income?

1,985,000

13.The trial balance on December 31 shows P45,000 for notes receivable. Of this
amount, P35,000 was issued on November 28 with an interest rate of 15% for 60
days. The other P10,000 was non interest bearing. How much is the accrued
interest on December 31?

(35,000 x .15 x 33/360) = 481.25

14.On December 31, notes on hand included the following:
A 30 day 18% note for P1,200 dated December 10.
A 60day 20% note for P2,000 dated December 11
A 45 day non interest bearing note for P800.
Give the adjusting journal entry to record the accrued interest.
1,200 x .18 x 21/360 = 12.6
2,000 x .2 x 20/360 = 22.22

Interest receivable 34.82

Interest income 34.82

15.Received a 90-18% note for 9,500 from a client on October 15. How much is the
accrued interest? How much is the maturity value of the note?

Accrued interest
9,500 x .18 x 77/360 = 365.75

Maturity value
9,500 x .18 x 90/360 = 427.50
9,500 + 427.5 = 9,927.5

1. Taylor Folk Realty Co pays weekly salaries of P13,750 on Friday for a five day week
ending on that day. Journalize the necessary adjusting entry at the end of the
accounting period, assuming that the period ends on (a) Tuesday (b) Wednesday.

2. At the end of the current year, P7,260 of fees have been earned but have not been
billed to clients. Give the adjusting journal entry to record the accrued income

3. Wages accrued but not paid at December 31 are P1,800.

4. Fees accrued but unbilled at December 31 are P10,600

5. The company has an outstanding 12% note payable dated December 1, 2005
amounting to P50,000. the principal and interest are payable on January 30, 2006.
Give the adjusting entry.
6. A company received a 90 day 12% note dated November 16, 2005 amounting to
P100,000. Give the adjusting journal entry on December 31.

7. The notes receivable account has a balance of P50,000 representing a 90 day, 6%

note received on December 1. The interest collectible upon maturity. Give the
adjusting journal entry. How much is the maturity value of the note?

8. Unpaid salaries as of December 31 amounted to P7,500.

9. The del Pilar Enterprises pays its weekly salary of P50,400 for a 6 day work ending
on a Saturday. If December 31 falls on a Thursday, how much is the accrued
salaries?

10. On September 1, 2005, Silang Trading issued a note payable to Dar east Bank in the
amount of P500,000. The note had an interest rate of 12% and had a term of one
year. On December 31, Silang Trading should record accrued interest of ____. How
much is the maturity value of the note?

11.The company has a P90,000 10% note receivable outstanding at December 31. The
note is dated December 1. What is the adjusting entry on December 31?
Accrued interest = 90,000 x .1 x 30/360 = 750

12.Before any adjustments were made, the net income of Aguinaldo Co. was
P2,000,000. However, accrued interest on notes payable of P15,000 need to be
recorded. After the adjusting entry was made, what is the adjusted net income?

13.The trial balance on December 31 shows P45,000 for notes receivable. Of this
amount, P35,000 was issued on November 28 with an interest rate of 15% for 60
days. The other P10,000 was non interest bearing. How much is the accrued
interest on December 31?

14.On December 31, notes on hand included the following:

A 30 day 18% note for P1,200 dated December 10.
A 60day 20% note for P2,000 dated December 11
A 45 day non interest bearing note for P800.
Give the adjusting journal entry to record the accrued interest.

15.Received a 90-18% note for 9,500 from a client on October 15. How much is the
accrued interest? How much is the maturity value of the note?
Accrued interest = 9,500 x .18 x 77/360 = 365.75