Exercise 6:

Believe You Can Corporation has the following information during the month of December:

Total purchases for office supplies during the year amounted to P240,000. A year-end physical count revealed that only 20,000 worth of supplies were on hand. Fees for security services provided to the company, amounting to P45,000 per month, are scheduled to be paid on the 5th day of the following month. On December 31, the company received the following utility bills which were paid on the following month: Liwanag Electric Company, P40,000; DoonDito Telecom, P20,000 Clear Water District P5,000 Prepare the necessary adjusting journal entries.

Exercise 7:

Driven by the owner's drive and focus, Icandoit Corporation started its operations on July 1 of this year. As a protection, the company purchased an insurance plan for P60,000 per year. The company paid the insurance premiums for 1 year at the start of its operations.

Prepare the journal entries relevant to the insurance. Use the asset method.

Exercise 8:

Driven by the owner's motivation, Relentless Company started its operations on April 1 of this year. He rented an office space for the company at P10,000 per month. The company paid its 12 months' rent in advance at the start of its operations.

Prepare the journal entries relevant to the rent payment. Use the expense method.