To prepare the adjusting entries and adjusted trial balance, we need to consider the given information.

Here are the adjusting entries based on the provided information:

1. Adjusting entry for doubtful accounts:

Debit: Bad Debt Expense - P4,900 (10% of P49,000)

Credit: Allowance for Doubtful Accounts - P4,900

2. Adjusting entry for prepaid insurance:

Debit: Insurance Expense - P3,000 (P15,000 / 5 months)

Credit: Prepaid Insurance - P3,000

3. Adjusting entry for cash on hand:

Debit: Cash on Hand - P300

Credit: Cash - P300

4. Adjusting entry for accrued interest on notes receivable:

Debit: Interest Receivable - P500 (P30,000 × 10% × 60/365)

Credit: Interest Income - P500

5. Adjusting entry for depreciation of machinery and equipment:

Debit: Depreciation Expense - P15,000 [P150,000 / 10 years]

Credit: Accumulated Depreciation - P15,000

6. Adjusting entry for depreciation of furniture and fixtures:

Debit: Depreciation Expense - P3,250 [P25,000 / 5 years]

Credit: Accumulated Depreciation - P3,250

7. Adjusting entry for accrued interest on notes payable:

Debit: Interest Expense - P1,250 (P50,000 × 15% × 60/360)

Credit: Interest Payable - P1,250

8. Adjusting entry for percentage tax on gross receipts:

Debit: Percentage Tax Expense - P6,000 (P60,000 × 10%)

Credit: Percentage Tax Payable - P6,000

Now, let's prepare the adjusted trial balance:

Account Titles Debit Credit

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Cash (on hand) P 24,700

Cash (in bank) P 45,000

Accounts receivables P 44,100

Notes receivables P 29,500

Office supplies P 600

Prepaid insurance P 12,000

Furnitures and Fixtures P 21,750

Equipment and Machineries P 135,000

Accounts Payable P 26,000

Notes Payable P 50,000

Ortega. Capital P 138,850

Ortega. Drawings P 500

Repair and enhancement Income P 290,000

Salaries expense P 55,000

Rent expense P 45,000

Interest P 1,000

License expense P 7,250

Miscellaneous expense P 46,750

Bad Debt Expense P 4,900

Allowance for Doubtful Accounts P 4,900

Insurance Expense P 3,000

Cash on Hand P 300

Interest Receivable P 500

Depreciation Expense P 18,250

Accumulated Depreciation P 18,250

Interest Expense P 1,250

Interest Payable P 1,250

Percentage Tax Expense P 6,000

Percentage Tax Payable P 6,000

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TOTAL P 569,800 P 569,800

The adjusted trial balance shows the balances of all accounts after considering the adjusting entries. The
debit and credit totals should match to ensure the accounts are in balance.