During your examination of the 20×3 financial statements of Goyo Company, the following data were discovered. Give any correcting and adjusting entries called for by the information given. Disregard any

During your examination of the 20×3 financial statements of Goyo Company, the following data were discovered. Give any correcting and adjusting entries called for by the information given. Disregard any effects on income tax. Write your answers in the space provided. Adjusting Entries, December 31, 20×3 1. An office equipment purchased on January 2, 20×2, at the cost of P44,000, having an estimated salvage value of P4,000 and an estimated useful life of five (5) years, is now estimated to have a total life of 10 years from January 2, 20×2. The estimated salvage value remains unchanged, the straight-line method of depreciation is used. 2. Interest deducted in advance on notes payable amounts to P10,000. The Interest Expense account has a debit balance of P15,000. The company failed to record interest deducted in advance at the end of 20×1, P6,000; and at the end of 20×2, P6,200. All original entries were made to the Interest Expense account. 3. Merchandise in transit, December 31, 20×3, FOB shipping point, of P30,000 was not included in the inventory as of December 31, 20×3, but was entered in the Purchases account in 20×3.

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer