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Joey Advertising closes its books every December 31 and correspondingly prepares its adjusting entries. Make the appropriate adjusting entry for each of the following items

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Joey Advertising closes its books every December 31 and correspondingly prepares its adjusting entries. Make the appropriate adjusting entry for each of the following items (20 pts.) 1. Last October 15, Joey Advertising decided to sign the company for a nine-month advertising contract for a full blast advertising of all of its products. The company received P810,000 for the contract and the accountant credited the amount to Unearned Advertising Income. 2. Last August 1, the company subscribed to a business magazine paying P12,960 for a two- year subscription to start that same month. This was recorded to Prepaid Subscription. 3. Supplies account at the beginning of the year showed a balance of P10,800. No purchases were made during the year. Supplies used during the year amounted to P6,300. 4. A machine costing P750,000, with a salvage value of P50,000 and an estimated useful life of 14 years, is depreciated on a straight-line basis. 5. Utilities bill was received last December 27 amounting to P3,123. The company intends to pay it on January 3 the following year. 6. Last May 31, the company decided to rent a garage as parking space of its company vehicles. Six-month rent was paid in advance in the amount of P30,000. The Asset method was used to record this transaction 7. Last June 30, the company received a note from its customer Byron Co. amounting to P120,000 with interest of 12% per year. 8. Doubtful accounts at the end of the year are estimated to be 3% of Accounts Receivable which has a balance of P355,000. 9. Joey Advertising received P640,000 cash from a customer representing an 8-month advertising contract. The Liability Method was used to record the receipt of payment. 10. The company constructed its own building with total cost amounting to P27,000,000. The building has an estimated useful life of 25 years and a salvage value of P2,000,000. The building was completed last May 31. Depreciation will start after the building's completion. EN

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