Adjusting entries - I Determine the effects of the following adjusting - related items on the income statement and statement of financial position balances dated December 31, 2019. Indicate whether O - overstated, U - understated, or NE - no effect. Item Revenues Expenses Assets Liabilities Owner's Equity A 1 2 B 4 C 5 6 D 7 8 E 9 10 A. Failure to accrue interest expense amounting to P3,000 for the fourth quarter. B. Failure to accrue rental revenues amounting to P55,000 for the month of December. C. Failure to recognize the unearned portion of the P120,000 advance consulting fees covering a nine - month period received last March 1, 2019 and initially recorded as a nominal account. D. Failure to recognize the P20,000 earned portion of the repairs revenue initially recorded as a real account when the cash was received. E. Failure to recognize P5,000 unused office supplies for supplies bought last June 1, 2019 which was taken up in the books using a nominal account.Adjusting Entries - II provide the adjusting journal entries at year-end 2019 for the following independent situations using the perspective of the business (assume calendar year). 1. On March 1, 2019, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an interest-bearing note for the P285,000. The bank loan is payable after three years with an annual interest of 15%. 2. Guitar Cafe received the following bills covering the month of December 2019 on January 3, 2020: advertising of P19,800, repairs of P2,000, and utilities of P4,860. 3. Harp beauty Shop pays salaries for the first half of the month every 25th day of the current month and the second half every 10th day of the succeeding month. The salaries for the second half of December 2019 amounted to P35,000. 4. Drumstick Chickens rendered catering services last December 15, 2019. The contract price amounted to P75,000. Since no payment had been received yet, Drumstick did not make any journal entry last December 15, 2019. 5. On May 1, 2019, Piano Services received a P450,000, 9% note for selling equipment not being used anymore in the business. The note will be payable in two years.Assessment Task 5 - 3 Adjusting Entries - III. Provide the adjusting journal entries at year-end 2019 for the following independent situations (assume calendar year) 1. On March 1, 2019. Finland Tutorials received P60,000 representing an advance payment for services to be rendered in November 2019. This was booked using a real account. At year end, only 70% of the expected service was rendered. 48 2. The trial balance of Mangolia Cafe shows Kitchen Supplies and Kitchen Supplies Expense accounts at balances of P8,400 and PO, respectively. At year-end, there are P1,480 of supplies on hand. 3. On June 15, 2019, Russia Beauty Shop paid P18,000 to Secure Insurance Company for a three-year insurance policy. This was taken up in the books using a real account. 4. China Chickens received a 90 - day, P18%, P175,000 note from a customer for catering services rendered. The note matures on February 14, 2020.5. On May 1, 2019. Indonesia Services mortgaged a piece of real property to a local bank. Proceeds amounted to P499,200, net of 4% services charges. The mortgage requires annual payment of 12% interest starting May 1, 2020. 5. On March 1, 2019, Pakistan Job Placements decided to sublease a portion of its office to a review center for a P8,500 a month. The review center occupied the space on September 1, 2019. Because of a tight budget, the review center requested Pakistan if it could make the first payment on January 15, 2020. Pakistan yielded to this request. 7. The Unearned Subscriptions Revenue account of Iran Events showed a balance of P268, 500 composed of the following: a. One-year subscription starting July 1, 2019, P87,000. b. Two-year subscriptions starting February 1, 2019, P95,700. c. Eight-month subscription starting April 1, 2019, P85,800. 8. Mexico Skin Care bought a piece of salon equipment for P75,000 on January 15, 2019. It has an estimated useful life of five years. Scrap value has been determined to be 10% of the acquisition cost. 9. Australia Delivery needed four trucks in 2019. Two trucks were purchased on May 1, 2019 at P1,850,000 each and another two trucks were purchased on July 1, 2019 at a total price 15% higher than the May 1, 2019 purchase. For this type of depreciableassets, Australia is allocating 8% of the acquisition cost for scrap value and estimating useful lives at eight years. 10. On August 1, 2019, Turkey Manpower Services bought office furniture and fixtures worth P248, 000. These depreciable assets have a useful life of nine years and a scrap value of P5,000. Assessment Task 5 -4 The following selected ledger balances were provided to you at year-end (before adjusting journal entries) by Happy Buddy Tour Services, a calendar year services business owned by Igo Santiago. The year 2019 is their first year of business operations Account Title Debit Credit Accounts Receivable P435.000 Notes Receivable 10,000 Equipment 125.000 Furniture and Fixtures 36,000 Prepaid Rent 21,000 Allowance for Doubtful Accounts Accumulated Depreciation - Equipment Accumulated Depreciation - Fumiture and Fixtures Interest Receivable Notes Payable 57,000 Utilities Payable Salaries Payable Unearned Service Revenue 240,000 Interest Payable Interest Income Insurance Expense 45,000 Interest Expense Depreciation Expense Doubtful Accounts ExpenseAdditional requirements: 1. What is the carrying value of Equipment as of December 31, 2019? 2. What is the carrying value of Furniture and Fixtures as of December 31, 2019? 3. What is the net realizable value of Accounts Receivable as of December 31, 2019? 4. What is the adjusted balance of Prepaid rent as of December 31, 2019? 5. What is the adjusted balance of Unearned Service Revenue as of December 31, 2019