Preparing Adjusting Entries at Year-End Hungria's accountants for making adjusting entries: On June 30, 2020, the end of fiscal year, the following information is available to Noel Among the liabilities of the entity is a P2,400,000 mortgage payable. On June 30, the accrued interest on this mortgage amounted to P120,000. Assume that on, July 2, a Friday, the entity, which is on a five-day workweek and pays employees weekly, paid its regular salaried employees P192,000. On June 29, the entity completed negotiations and signed a contract to provide services to a new client at an annual rate of P36,000. d. The Supplies account showed a beginning balance of P16,150 and purchases The beginning balance represents the unexpired portion of a one-year policy purchased in April of the previous year. The January 1 entry represented a new one- during the year of P37,660. The year-end inventory revealed supplies on hand of year policy, and the May 1 entry is the additional coverage of a three-year policy. Adjusting the Accounts | 217 NAME: SECTION: SCORE: PROFESSOR Problem #8 ng for P11,860. e. The Prepaid Insurance account showed the following entries on June 30: Beginning Balance P15,300 29,000 33,660 January 1 May 1 Cost The following table contains the cost and annual depreciation for buildings and equipment, all of which were purchased before the current year: Account Annual Depreciation Buildings P1,850,000 P 73,000 Equipment 2,180,000 218,000 On June 1, the entity completed negotiations with another client and accepted an advance of P210,000 for services to be performed in the next year. The P210,000 was credited to Unearned Service Revenues. h. The entity calculated that as at June 30 it had earned P35,000 on a P75,000 contract that will be completed and billed in August. 8 Required: Prepare the adjusting entries