Exercise $19$

On September $1,2019,$ ABC Company and MNO Company signed a contract with the Daily Bulletin for an ad of their products to be printed every Sunday and to run for $4$ months at a rate of $P10,000$ per month. ABC Company immediately issued a check for this contract while MNO did not because the owner of the Daily Bulletin was a close friend.

a$)$ Give the adjusting entry of the ABC Company if the accounting period is yearly ending October $31$ and the company is using the asset method.

b$)$ Give the adjusting entry of MNO Company if its accounting period is yearly ending December $31$ and a statement of account was received from Daily Bulletin.