III.Problems: 1. Bonga Repair Company began business operations on May 1, 2021. During 2021, the company recorded transactions using the cash-basis method. On April 30, 2022, the trial balance reported the following amounts: Trial Balance Bonga Repair Company April 30, 2022 5 Bonga, the owner, decided that it would be wiser to use the accrual- basis method to keep its accounting records. Details of unrecorded accruals and other information as of April 30,2022 are as follows: a. Supplies on hand on April 30, 2022 amounted to P15,000. b. On April 30, utilities payable amounted to P6,500. c. On April 30, rent payable amounted to P12,000. d. It is estimated that the repair equipment bought on September 17, 2021 would have an estimated useful life of 10 years, P10,000 scrap value. e. The notes payable balance consists of two notes: a two-year note of P50,000, dated June 1 , 2021, bearing an interest of 10%; and a one-year note of P20,000, dated April 1, 2022, bearing an interest of 12%. (Interests were deducted in advance) f. On April 5, 2022, Bonga rendered services on account for P25,000. g. Included in the Service Revenue was P1,500 deposit given by a customer for repairs to be done on June 1, 2022. h. Salaries of employees amounting to P18,500 on April 30, 2022 will be paid on May 5 , 2022. III.Problems: 1. Bonga Repair Company began business operations on May 1, 2021. During 2021, the company recorded transactions using the cash-basis method. On April 30, 2022, the trial balance reported the following amounts: Trial Balance Bonga Repair Company April 30, 2022 5 Bonga, the owner, decided that it would be wiser to use the accrual- basis method to keep its accounting records. Details of unrecorded accruals and other information as of April 30,2022 are as follows: a. Supplies on hand on April 30, 2022 amounted to P15,000. b. On April 30, utilities payable amounted to P6,500. c. On April 30, rent payable amounted to P12,000. d. It is estimated that the repair equipment bought on September 17, 2021 would have an estimated useful life of 10 years, P10,000 scrap value. e. The notes payable balance consists of two notes: a two-year note of P50,000, dated June 1 , 2021, bearing an interest of 10%; and a one-year note of P20,000, dated April 1, 2022, bearing an interest of 12%. (Interests were deducted in advance) f. On April 5, 2022, Bonga rendered services on account for P25,000. g. Included in the Service Revenue was P1,500 deposit given by a customer for repairs to be done on June 1, 2022. h. Salaries of employees amounting to P18,500 on April 30, 2022 will be paid on May 5 , 2022