STRAIGHT PROBLEMS. Prepare what is required for each of the items below. Treat each case independently. In 2020, NEROSON Inc. bought office supplies for P27,000 cash and debited the same to an expense account. At year-end, 2/3 of the office supplies remain unspent. What is the adjusting journal entry at year end? NEROSON Inc. Corporation received cash of P13,500 on September 1, 2020 for one year’s rent in advance and recorded the transaction with a credit to Unearned Rent. The December 31, 2020 adjusting entry is? NEROSON Inc. paid cash of P18,000 on June 1, 2020 for one year’s rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2020 adjusting entry is? NEROSON Inc. received advance payment from a customer on October 31, 2020 worth P510,000 in consideration for future services to be rendered starting November 1, 2020. NEROSON recorded the same in Unearned Service Revenue account. If NEROSON already rendered 60% of the required work by year-end, what is the December 31, 2020 adjusting entry? NEROSON Inc. received P6,400 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is? NEROSON Inc. paid P3,600 on June 1, 2020 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2020 adjusting entry is? NEROSON Inc. purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of P20,000. The December 31, 2020 adjusting entry is? NEROSON Inc. received cash of P18,000 on August 1, 2020 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2020 adjusting entry is? NEROSON Inc. loaned P90,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with a face value of P90,000. What adjusting entry should NEROSON make on December 31, 2020? The accountant of NEROSON Inc. made the following adjusting entry on December 31, 2020. Rent Expense P1,800 Prepaid Rent P1,800 If annual rent is paid in advance every October 1, the original transaction entry made on October 1 was? The accountant of NEROSON Inc. made the following adjusting entry on December 31, 2020: Unearned Rent P900 Rent Revenue P900 If annual rent is received in advance every March 1. The original transaction entry made on March 1 was? Three-days’ worth salaries are unpaid as at Dec. 31. Salaries are ₱75,000 bi-weekly for a five-day work week. Prepare the adjusting journal entry as of December 31. NEROSON Inc. pays its employees every 8th and 22nd day of the month. There are five workdays within a workweek. The last payday was on May 22, 2020 (a Tuesday). By month-end, there are already seven days of accrued salaries. The pay scale at NEROSON is as follows: Category No. in Category Daily Rate per Employee Executives 3 1,000 Managers 6 750 Staff 36 400 Prepare the adjusting entry at the end of the month. NEROSON Inc. sells magazine by subscription for ₱15 per copy. During the year, 47,200 two-year subscriptions were sold. As at June 1, 2020, the Unearned Magazine Revenues account had a balance of ₱315,000. At year-end, it is determined that the liability to provide subscribers’ future magazines amounted to ₱613,000. Prepare the adjusting entry at year-end.
