Assignment: Adjusting Entries Prepare the adjusting entries from the following information which you gathered on Dec 31, 2007, the end of the accounting period 1. On June 1, 2007, the business entered into a one year advertising contract with Sagnit Advertising Co. A payment of P 12,000 was made on that date. The expense method was used. 2. The office equipment costing P 21,500 was purchased on May 31, 2007. It is estimated that it can be used for five years with a scrap value of P1,500. 3. Unearned commission was credited for P3,500. One-half of this amount has been earned as of Dec 31, 2007. 4. Supplies expense account has a balance of P 3,000 representing the amount of supplies bought during the period. Supplies on hand at the end of Dec. amounted to P 1,000. 5. The Accounts Receivable of the business has a balance of P 3,000. It is estimated that only 95% is collectible. There is no allowance carried in the books. 6. The payroll for a week for six working days (Mon to Sat) amounts to P 6,000. This is paid every Sat. Dec 31 fell on a Thursday. 7. On Dec 31, 2007, there are two notes on hand. A 60-day 12% note for P 6,000 Dec 1, 2007 and a note for P 3,000 dated Nov 30, 2007. No interest has yet collected