Date

Dec
Dec
Dec

Dec
Dec

Explanation
31
31
31

31
31

Dec

31

Dec
Dec

31
31

Dec

Dec
Dec

Dec
Dec

Prepaid Advertising
Advertising Expense
Interest Expenses
Accrued Interest Expense

P 5,000
100
100

Unearned Commission
Rent Revenue

1,750

Supplies
Supplies Expense

1,000

Bad Debts
Salaries
Expense
Estimated
Uncollectible
Salaries
Payable
Accounts

Credit

P 5,000

2,333
.33

31 Depreciation, Office
31
Interest
Expense
equipment
Interest Payable
Accumulated
Depreciation, Office
Equipment

Debit

Depreciation, Office
Equipment
Accumulated
Depreciation, office
equipment

Prepaid Insurance
Salaries
Expense
Salaries Payable
Insurance
31
Interest Receivable
Interest Income
31 Supplies Expense
31
Depreciation, furniture and
fixtures
Supplies
Accumulated depreciation,
furniture and fixtures

2,333.33

1,750

A.
1
2

3
4
5

1,000
150
P 45,000

4,000
7,500
91

150
P 45,000

4,000
7,500

7
8

91
9

750
13,100
13,100750

10

76.66
28,125
76.66
28,125

Dec

Dec

31

31

Insurance Expense
Prepaid Insurance
Salaries Expense
Salaries Payable

P 9,500
P 9,500
30,000
30,000

Dec

31

Supplies Expense
9,080
Supplies
9,080

Dec

31

Depreciation, Equipment
101,600
Accumulated Depreciation,
Equipment

101,600

Solution:
1. (12,000/12)7=7000 you used 7000 since this is
Expense method therefore you will use 5000
because this is
2. [(10000x.6)/12]2=100
3. (21500-1500)/5=4000 since this was bought in
may therefore you will divide it by 12 then times
7 to find its depreciation for this one year
(4000/12)7
4. 3500 then of this is earned therefore 1750 is
unearned
5. No solution is needed
6. 3000x.95=2850 then that means that the
uncollectible are only 3000-2850=150
7. 6000/6=1000 4 days work therefore
1000x4=4000 is accrued
8. [(6000x.12)/360]30=60 &
[(3000x.12)/360]31=31 then add 60 and 31=91
for days solution its 360 because of banks rule,
and for months solution [(6000x.12)/12]= 60 &
[(3000x.12)/12]=30 add them both then its 90.
Days solution are more accurate.
9. 2500/5+[(2500/5)/12]6=750 I added them the
first half is = to 500 and the other half which is

bought at July depreciated at 250 500+250=750

is the depreciation for that year.
10.
[(5000x.12)/360]46=76.66 the 46 are the
days that will pass until Dec 31.
Problem #2
1. (75000/5)3=45,000 for 3 days
2. (18000/12)5=7500 were used
3. 35400-22300=13100 were used
4. [(270000/8)/12]10=28125 is the depreciation
for that year
Problem #3
1. 19000/2=9500
2. (10000/5)3=30000 for 3days
3. (4480+11000)-6400=9080 supplies were used
4. (588000-80000)/5=101600 is the depreciation
for one year