a. The balance in the ledger account Office Supplies amounted to P 32,000. A count of the Office Supplies on Dec. 331, 2017 totaled P 12,800. b. On Oct. 1, Gloria Diaz Company paid P 10,800 for 6-months' rent. Prepare the adjusting entry on Dec. 31, 2017. The entity acquired Office Equipment costing P352,800 on May 1, 2017. The equipment is expected to last 5 years after which it will be worthless. Compute for the depreciation expense as of Dec. 31, 2017. d. Gloria Diaz received P 22,800 on Nov. 1 from a customer for service to be rendered during the months of November to February. On December 31, 2 months' worth of service is already done.

During the course of your examination of the financial statements of the Hales Corporation for the year endedDecember 31, 2016, you discover the following:a. An insurance policy covering three years was purchased on January 1, 2016, for $6,000. The entire amountwas debited to insurance expense and no adjusting entry was recorded for this item.b. During 2016, the company received a $1,000 cash advance from a customer for merchandise to be manufacturedand shipped in 2017. The $1,000 was credited to sales revenue. No entry was recorded for the cost ofmerchandise.c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing$750 were on hand at December 31.d. Hales borrowed $20,000 from a local bank on October 1, 2016. Principal and interest at 12% will be paid onSeptember 30, 2017. No accrual was recorded for interest.e. Net income reported in the 2016 income statement is $30,000 before reflecting any of the above items.Required:Determine…

The following transactions occurred during December 31, 2021, for the Microchip Company.  On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…

Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017   Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000. Instructions Compute the current ratio as of the beginning of the month and after each transaction