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Direction: Compute the depreciation expense for the following independent cases. Use the straight line method of depreciation. 1. Pedro Reyes purchased a delivery vehicle on

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Direction: Compute the depreciation expense for the following independent cases. Use the straight line method of depreciation. 1. Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January - December 2016, how much is the depreciation expense? 2. Pedro Reyes purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January-December 2016, how much is the depreciation expense? 3. Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) month (January 2016), how much is the depreciation expense for the month? ACTIVITY: On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes its accounts at the end of each month. The following trial balance was prepared after one month of operations. More information: . No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200. Unadjusted Trial Balance Account Title and Explanation Debit Credit Cash 10,060 Salaries earned by the office staff but not yet recorded or Accounts Receivable 0 paid amounted to PHP970 by April 30. Prepaid Expenses 7,800 Supplies 1,460 . Many clients are asked to make advance payment for legal Office Equipment 26,400 services to be rendered in future months. These advances are Accum. Deprn-Off Eqpt 0 16,000 credited to the Unearned Service Revenue account once Notes Payable Interest Payable received. During April, PHP5,020 of these advances were Unearned Service Revenue 15,020 earned by the business. Cruz, Capital 20,000 Cruz, Withdrawal 3000 Office supplies on hand by April 30 amounted to PHP400. Service Revenue 1,580 Supplies Expense 2,680 The office equipment was purchased on April 1 and is Salaries Expense 1,200 being depreciated over an estimated useful life of 10 years 52,600 52,600 with no residual value. Instructions: 1. Prepare the adjusting entries for April 30. 2. Prepare a statement of income for April 2016

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