Correction of Errors The following errors were discovered by Joseph Refugio in his examination of the books of accounts of Dipolog Glass Factory, owned and managed by Nathalyn A. Lopez, just before closing of books on December 31, 20A. Reconstruct the wrong entries prepared, the correct entries that should be made, the would be correcting entries. Utilize the space provided. 1. Cash received from a bank loan of the business in the amount of P80,000 was erroneously credited to Capital account instead of Notes Payable. Correcting Entry Correct Entry Wrong Entry 2. Payment of rental expense in the amount of P30,000 was erroneously recorded at P20,000 Correcting Entry Correct Entry Wrong Entry 3. Collection from customer's account was erroneously credited to Service Income instead of Accounts Receivable, P16,000. Correcting Entry Correct Entry Wrong Entry 4. Purchase of office supplies in the amount of P20,000 was erroneously credited to Accounts Receivable instead of Accounts Payable. The amount was also erroneously recorded at P30,000 Wrong Entry Correct Entry Correcting Entry Problem on Accruals of Income and Expense Arising from Issuance of Notes As of December 31, 20A, Mr. Kadil Guiamad holds a 60-day, 10% note of P240,000 signed by Ma. Cristina Robles, dated November 16, 20A: a. b C The journal entry in the book of Kadil Guiamad upon released of the money? How much interest would be earned upon maturity of the note? How much is the maturity value of the note? How much interest earned by Mr. Kadil Guiamad as of Dec. 31, 20A? What is the required adjusting entry in the book of Mr. Kadil Guiamad to record accrued interest income as of December 31, 20A? d e. On August 1, 20A Mr. Vincent Clarin, owner of Debonaire Salon borrowed money from Sofia Goden Lending Co. and issued a 6-month note amounting to P50,000 for a 12% interest rate. 1. 2. 3. 4. What is the journal entry in the book of Mr. Clarin upon receipt of cash? How much is the accrued interest expense as of December 31, 20A? What is the maturity value of the note? What is the required adjusting entry in the book of Mr. Clarin to record the interest has been accruing on the note as of December 31, 20A