COPY AND ANSWER.

ACTIVITY: October 8, 2018

1. Entity A received an 8%, ₱100,000, one-year, note receivable on September 1, 2016. Entity A
uses a calendar year period. The principal and interest on the note are due on September 1,
2017. What is the adjusting entry on December 31, 2016?
2. Entity B issued a 12%, ₱350,000, one-year, note payable on May 1, 2015. Entity B uses a
calendar year period. The principal and interest on the note are due on May 1, 2016. What is
the adjusting entry on December 31, 2015?
3. A tenant is renting a space in the building of Entity C. The monthly rental is ₱120,000. On
December 31, 2014, the tenant has not yet paid the rent for the months of November and
December 2014. What is the adjusting entry to be made by Entity C on December 31, 2014?
4. Your employees earned total salaries of ₱180,000 for the month of December 2016. What is the
entry to record the salaries prior to their payment?
5. On March 31, 2017, your business acquires a pickup truck for ₱1,600,000. The truck has an
estimated useful life of 5 years. What is the adjusting entry on December 31, 2017 to take up
depreciation expense?

ACTIVITY: October 9, 2018

A business renting out properties receives one-year advances rent of ₱480,000 from one of its tenants
on May 1, 2017. The advanced rent covers the months of May 1, 2017 to April 30, 2018.

a. Provide the journal entry to record the collection on May 1, 2017 under each of the following
methods: Liability Method; Income Method
b. Provide the adjusting entries on December 31, 2017 under each of the methods listed above.

A business pays one-year insurance of ₱360,000 on August 1, 2017.

a. Provide the journal entry to record the collection on May 1, 2017 under each of the following
methods: Asset Method; Expense Method
b. Provide the adjusting entries on December 31, 2017 under each of the methods listed above.