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Exercises Reversing Entries

The document provides information about accounting exercises on adjusting entries and reversing entries. It includes transactions that occurred in 2019 and 2020 for a company called Kelly Corp. It requires the preparation of adjusting entries for 2019, reversing entries for 2020, journal entries for 2020 transactions excluding adjustments, adjusting entries for 2020, and computation of account balances for various expense and income accounts in 2020.

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Andrea Bercy Coballes
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48 views

Exercises Reversing Entries

The document provides information about accounting exercises on adjusting entries and reversing entries. It includes transactions that occurred in 2019 and 2020 for a company called Kelly Corp. It requires the preparation of adjusting entries for 2019, reversing entries for 2020, journal entries for 2020 transactions excluding adjustments, adjusting entries for 2020, and computation of account balances for various expense and income accounts in 2020.

Uploaded by

Andrea Bercy Coballes
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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SCHOOL OF ACCOUNTANCY, BUSINESS and HOSPITALITY

Accountancy Department

ACCT 1026- Financial Accounting and Reporting


First Semester, SY 2021-2022

Exercises
ADJUSTING ENTRIES AND
REVERSING ENTRIES

Make sure you have solved the following problems before attending our teleconference. Please write your
complete solution in your Journal of Learnings (JoL).

Problem 1 – Refer to Exercises under ADJUSTING ENTRIES – PART 2. Please prepare the reversing
entries for PROBLEM 9.

Problem 2 – Refer to Exercises under ADJUSTING ENTRIES – PART 2. Please prepare the reversing
entries for PROBLEM 10.

Problem 3 The following transactions occurred during the year 2019 and 2020:

2019
October 20 Kelly Corp purchased various office supplies in cash amounting to P20,000.
November 1 Kelly received a 6-month rental fee of P30,000 from a tenant upon occupation of a
space being rented out on the same date.
November 18 Kelly purchased an equipment in cash amounting to P50,000. This equipment is
available for use on the same date. It has a useful life of 5 years.
November 30 The entity received CAGELCO electric bill for the month ended November 30
amounting to P25,000.
December 4 The entity paid the electric bill.
December 15 The entity received a 3-month promissory note from a customer for a sale of goods
amounting to P10,000. The note bears an interest of 10%.
December 31 The entity received CAGELCO electric bill for the month ended December 30
amounting to P28,000.
Additional information
1. The remaining office supplies after a count on December 31 is P5,000.
2. The entity uses the expense method of recording prepayments and the revenue
method of recording pre-collections.

2020
January 3 The entity paid the December electric bill.
March 15 The entity received the payment of the customer’s promissory note including the 3-
month interest.
June 9 Kelly Corp purchased various office supplies in cash amounting to P60,000.
August 31 Kelly received a 6-month rental fee of P60,000 from a tenant upon occupation of a
space being rented out on the same date.
November 30 The entity received CAGELCO electric bill for the month ended November 30
amounting to P27,000.
December 5 The entity paid the electric bill.
December 31 The entity received CAGELCO electric bill for the month ended December 30
amounting to P32,000.
Additional information
1. The remaining office supplies after a count on December 31 is P7,000.
Required:

1. Provide all the adjusting entries in 2019.


2. Provide the reversing entries in 2020.
3. Provide the journal entries (other than adjusting entries) for the transactions that occurred in 2020.
4. Provide the adjusting entries in 2020.
5. Compute the balance of the following accounts in 2020 based on the transactions given (Tip: Use your T-
account):
a. Utilities expense.
b. Supplies Expense
c. Interest income
d. Rent Income
e. Depreciation Expense

Prepared by Sir Je

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