Prepare the necessary adjusting entries on the following items on December 31, 2016:

1. The business rented a space on December 10, 2016 for P15,000 payable a month after.
Debit Credit
Rent expense P 1 5 0 0 0
Accounts Payable P 1 5 0 0 0

2. A radio broadcasting company started advertising the product of a customer on December 5,2016 for a
one-month coverage for P20,000 payable on January 5, 2017.
Debit Credit
Advertising expense P 2 0 0 0 0
Accounts Payable P 2 0 0 0

3. The salaries of the owrkers remained unpaid as of December 31 amounting to P15,000.

Debit Credit
Salaries and Wages P 1 5 0 0 0
Accrued Salaries & Wages P 1 5 0 0 0
Prepare the necessary adjusting entries on the following items on December 31, 2016:

1. On November 15, 2016, the business borrowed P500,000 at 10% interest payable a year after. The interest
was deducted in advance, and the company debited interest expense on the date of borrowings.
Debit Credit
Interest Expense P 5 0 0 0 0 0
Interest Payable P 5 0 0 0 0

2. Supplies on Hand was debited at the time of the purchase amounting to P6,000. Per inventory count on
December 31, 2016, unused supplies amounted to P2,300.
Debit Credit
Supplies Expense P 3 7 0 0
Supplies on hand P 3 7 0 0

3. Furniture and Fixtures were purchased on July 1, 2016 amounting to P530,000. It is estimated that the asset
is useful for 10 years afterwhich they can be sold for P20,000.
Debit Credit
Depreciation Expense - Furnitures P 2 6 5 0 0
Accumulated Depreciation - Furnitures P 2 6 5 0 0
 P500,000 x 10% = 50,000

SUPPLIES SUPPLIES EXPENSE

P 6,000 P 2,300 P 2,300
P 3,700

P530,000/10 = 53000/12 x 6 = 26500

 CASH
P 6,000
Prepare the necessary adjusting entries on the following items on December 31, 2016:

1. Rent Income account has balance of P370,000 as of December 31, 2016. An amount of P12,000 is
applicable for January, 2017.
Debit Credit
Rent Revenue P 3 5 8 0 0 0
Accounts Receivable P 3 5 8 0 0 0

2. The business received a 90-day, 10% note from customer on November 1, 2016 amounting to P60,000 for
services rendered.
Debit Credit
Notes Receivable P 1 8 0 0 0
Service Income P 1 8 0 0 0

3. Unrecorded dental income as of December 31, 2016 amounted to P18,000.

Debit Credit
Service Income P 1 8 0 0 0
Accrued Income P 1 8 0 0 0
 RENT INCOME CASH
P 370,000 P 12,000 P 370,000 P12,000
P 358,000

P60,000/10% x 3 = 18,000