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Activities/Assossment: Exercise 1-1 (Adjusting and Reversing Entries - Prepaid Expenses and Unearned Revenue) The following are selected transactions of the ABC Trading during the year 2018) a. On July 1, 2009, the company received P270,000 representing rental payments for the period July 1, 2009 to December 31, 2010. b. On October 1, 2009 an insurance premium of P90,000 was paid covering a period of two years beginning on this date. 18 | ACCO 20283 ACCOUNTING 2 Instructions: Provide the necessary adjusting entries as of December 31, 2009 and appropriate reversing entries of January 1, 2020 assuming: 1. Transactions were originally record in asset and liability accounts. 2. Transactions are originally recording in expense and revenue accounts. Exercise 1-2 (Adjusting and Reversing Entries) DEF Merchandising follows the policy of recording prepayments to revenue and expenses accounts and reverse appropriate adjusting entries at the beginning of a new accounting period. The records of the business show the following: a. On March 1, 2009, DEF borrowed P2, 000,000 Cash from the Bank of the Philippines by issuing a 6% note payable in one year. The interest is payable upon mature. b. On September 1, 2009 =, DEF paid P360, 000 representing rental for one year starting on this date. C. DEF pays all employees every Friday. The total payroll for the five workweek ending January 3, 2010 is P150, 000. Instructions: Prepare the adjusting entries. Exercise 1-3 (Adjusting Entries) Give the account/s to be credited to complete the adjusting entries below: Debit Credit 1. Uncollectible Account Expense 2. Prepaid Rent 3. Office Supplies on Hand 4. Salary Expense 5. Insurance Expense 6. Interest Receivable 7. Interest Expense B. Rent Income 9. Depreciation Expense 10. Inventory, end