Quiz for BAACCEN

A. Journalize the following transactions:

1. (Asset method and expense method) Paid Insurance for two
years, P24,000.
2. (Liability method and Income method) Collected 120,000 in
advance for services to be rendered next year.

B. Prepare the adjusting entries:

1. (Asset method and expense method) 2 months of the expense
had been used.
2. (Liability method and Income method) P40,000 worth of
services had been rendered.
3. Total unpaid wages at year-end amounted to P35,000.
1.

a. Asset Method: a. Expense Method:

Prepaid Insurance 24,000 Insurance exp 24,000
Cash 24,000 Cash 24,000

b. AJE: b. AJE:
Insurance exp 2,000 Prepaid Ins. 22,000
Prepaid Ins. 2,000 Insurance exp 22,000
2.

a. Liab method a. Income Method

Cash 120,000 Cash 120,000
Unearned Inc 120,000 Service Inc 120,000

b. AJE b. AJE
Unearned Inc 40,000 Service Inc 80,000
Service Inc 40,000 Unearned Inc. 80,000
3. Wages Expense 35,000
Accrued Wage payable/expense 35,000