EXERCISES 1. Adjusting entries affect at least one statement of financial position account and 0 income statement account. For the following information, gathered as at December 3, identify the accounts affected and whether it is to be debited (Dr) or credited (Cr) whether it is to be placed in the income statement (IS) or statement of financial posto (SFP). The first entry is given as a guide: Account Titles 1.8% one year bank loan of the Interest Expense company is dated July 15. Interest Payable 2. Telephone Bill is received from PLDT 3. Prepaid insurance has expired IS or SFP Dr or Cr Debit Credit 1$ SFP 4. Credit customer is declared insolvent 5. Customer's 5% one year note is dated December 1 6. Advance collection from tenant is already camned. 7. Equipment has a life of ten years, 2. Make theentries to record the following adjustments at the end of the accounting period a) Accrued commission income of P10,000, b) Accrued utility expense of P5,000, c) Bad debts of P2,000 under the direct write-off method d) Depreciation of equipment for P3,500 c) Used supplies of P350 under the asset method from total purchases of P500 ) Eamed commission of P2,500 under the liability method if advance collection amounted to P3,000 3. Refer to Exercise 2 a) How much will be the additional operating expenses? b) How much will be the additional revenues? 150