3 2: Recording Seven Typical Adjusting Entries Direction: Read the information provided below and answer what is being required. Balikatan Store is completing the accounting process for the year just ended December 31, 2020. The transactions in 2020 have been journalized and posted. The following date with respect to adjusting entries were available. . Office Supplies Inventory at January 1, 2020 was P2,500. Office supplies purchase and debited to Office Supplies Inventory during the year amounted to P6,000. The year-end inventory showed P3,000 of supplies on hand. b. Waged earned on December 2020, unpaid and unrecorded on December 31, 2020, amounted to P27,000. The last payroll was December 28; next payroll will be January 6, 2021. C. 3/4 of the basement of the store is rented for P1 1,000 per month to another merchant, Kano Enterprises. Kano sells comparable, but not competitive merchandise. On November 1, 2020, the store collected six month's rent in advance from Kano in the amount of P66,000, which was credited in full to rent revenue when collected. d. The remaining basement space is rented to Gloria Specialty Shop for P5,200 per month, payable monthly. On December 31, 2020, the rent for November and December was neither collected nor recorded. Collections is expected on January 10, 2021. e. Delivery equipment that cost P300,000 was being used by the store. The equipment was estimated to have a useful life of 4 years and a residual value of P6,000 at the end of 4 years. Assume depreciation for a full year for 2020. The asset will be depreciated evenly over its useful life. f. On July 1, 2020, a two-year insurance premium amounting to P30,000 was paid in cash and debited in full to prepaid insurance. Coverage began on July 1, 2020. g. Balikatan Operates a repair shop to meet its own needs. Also, the shop does repairs for Kano. At the end of December 31, 2020, Kano did not pay for repairs completed amounting to P7,500. This amount has not been recorded as Repairs Shop Revenue. Collection is expected on January 1, 2021. Required: Give the adjusting entries for each situation that should be recorded for in the next page. Balikatan's Store on December 31, 2020. A space for the adjusting entries is provided