ADJUSTING ENTRIES • SOLVING
Extracted text: On September 1, 20A, Maria Theresa C. Apostol, owner of Cateel Fitness Centre paid an advance rental on a space of the building it occupies in the amount of P84,000. Ths covers the period from September 1, 20A to September 1, 20B and the accounting period ends on December 31, 20A. Q-1 If Asset Method or Real Approach is used in recording the prepayment, what i your journal entry on September, 1, 20A? Debit Credit Q-2 If Expense Method or Nominal Approach is used in recording the prepayme what is your journal entry on September 1, 20A? Debit Credit Q-3 How much of the P84,000 advanced rental payment will expire or expensed at the end of each month? Debit Credit Q-4 How many months will cover the expense portion? from to Q-5 How many months will cover the asset portion? to
Extracted text: a-8 If Expense Method or Nominal Approach is used in recording the prepayment, a-7 If Asset Method or Real Approach is used in recording the prepayment, what is a-6 How much of the P84,000 prepayment will be considered as Expense? Sisatheaeriost Adnustenents as Asset? your adjusting journal entry on December 31, 20A? Debit Credit what is your adjusting journal entry on December 31, 20A? Debit Credit n-9 Regardless of what method is used in recording the prepayment, a) How much amount of Prepaid Rent account that will be shown in the Balance Sheet as of December 31, 20A? b) How much amount of Rent Expense account that will be shown in the Income Statement for the period ended?