I.Arrange the following sequence in proper order: (10 points)

A.Transactions are entered in the journal.

B.Financial Statements are prepared.

C.The transactions are analyzed from the source document

D.A worksheet is prepared.

E.Closing entries are prepared.

F.Transactions are posted to the ledger.

G.A trial balance is prepared.

II.Based on the following data, prepare the necessary adjusting entries at the

end of the accounting period, December 31. (20 points)

A.Office Equipment costing P 55,000 was acquired on March 1 of the current year. It has an estimated salvage value of P 1,000 and useful life of 10 years.

B.Rent for nine months from May 1 was paid and charged to Prepaid Rent account, P 45,000.

C.Of the balance in advertising expense account of P 60,000; P10,000 is applicable for next year.

D.Interest Accrued on Notes Receivable, P 760.

E.Interest Accrued on Notes Payable , P 900.