DO IT! 3 Adjusting Entries for Accruals ACCRUED INCOME CASE 1: Assume that the business entity received a promissory note from a customer dated October 1, 2019. The note is amounting P100,000 with interest of 12% per year. The note is due after six(6) months. In December 31, 2019, what is the necessary adjusting entry on December 31, 2019 to recognize the accrued income for 2019? Answer: Debit Credit CASE 2: Solid Enterprise leases space to a tenant. The tenant agreed to an annual rental fees of P120,000 covering a period from December 1, 2019 to November 30, 2020. On December 2019, Solid Enterprise has not received the rental fee for December yet. What is the adjusting entry to record the accrued rental on December 31, 2019? Answer: Debit Credit ACCRUED EXPENSE CASE 1: Assume that the business entity issued a promissory note to a supplier dated September 1, 2019. The note is amounting P100,000 with interest of 12% per year. The note is due after six (6) months. In December 31, 2019, what is the necessary adjusting entry on December 31, 2019 to recognize the accrued interest expense for 2019? Answer: Debit Credit CASE 2: Coco Enterprises rented a space from a lessor. They agreed to an annual rental fees of P120,000 covering a period from November 1, 2019 to October 31, 2020. On December 2019, Coco Enterprise has not paid any rental fee yet. What is the adjusting entry to record the accrued rental on December 31, 2019? Answer: Debit Credit