repare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit balance of P117,600, which represent the cost of equipment purchased at the beginning of the year. The equipment was estimated to have a life of 15 years with the residual value of P9,600. 7. An automobile was acquired on June 1 at a cost of P1,440,000. This automobile was estimated to have a life of 8 years with a salvage value of P180,000. 8. Assume that on December 31, 2020, the end of the company’s accounting period, the company has outstanding Account Receivable of P300,000. The company estimates that 6% of the receivables might not be collected. The allowance for bad debts has a debit balance of P11,000 before adjustment. 9. Management fees of P432,000 were collected for one year in advance on April 1. These are credited to Unearned Management Fees when received. 10. The company pays a total of P18,000 every Friday for a 5-day work week ending Friday. Assume that the last day of the year falls on Wednesday

Prepare the adjusting entries needed as of December 2020. Write your solutions as description/explanation in each entry. The account names are given below. 1. The balance of the supplies account is a debit of P34,125. The inventory of supplies on December 31 amount s to P14,220. 2. The insurance expense account has a debit balance of P11,700 which represent a one-year premium paid in advance on August 1. 3. The balance of the prepaid rent account is a debit balance of P40,500 which represent 6-month rent received in advance on October 1. 4. Subscription income has a credit balance of P7,020 which represent a one-year subscription to a monthly magazine received in advance on May 31. 5. The advertising expense account includes a debit of P37,024 which represent the cost of advertising contract to publish the company ad in 52 consecutive issues of a weekly magazine. As of December 31, advertisements had appeared in 24 issues already. 6. The balance of the equipment account is a debit balance of P117,600, which represent the cost of equipment purchased at the beginning of the year. The equipment was estimated to have a life of 15 years with the residual value of P9,600. 7. An automobile was acquired on June 1 at a cost of P1,440,000. This automobile was estimated to have a life of 8 years with a salvage value of P180,000. 8. Assume that on December 31, 2020, the end of the company’s accounting period, the company has outstanding Account Receivable of P300,000. The company estimates that 6% of the receivables might not be collected. The allowance for bad debts has a debit balance of P11,000 before adjustment. 9. Management fees of P432,000 were collected for one year in advance on April 1. These are credited to Unearned Management Fees when received. 10. The company pays a total of P18,000 every Friday for a 5-day work week ending Friday. Assume that the last day of the year falls on Wednesday.