PROBLEM 3 Additional information: 1. The one-year P6,000 insurance paid was effective December 1. 2. Office rental of P4,000 for the month of December was still unpaid. 3. Interest of 18% per annum on the P60,000 bank loan granted on December 11, has accrued. 4. Advertising placement of P3,600 for three months was effective on December 1, 5. Fees of P5,000 collected in advance on December 30 will be for services to be rendered next year. 6. Office supplies unused at the end of the month amounted to P1,600. 7. Furniture and Equipment are estimated to have a useful life of ten years with ho residual value. It was decided to provide depreciation for December. NESTOR MARTEL LAW OFFICE Trial Balance December 31, 200C ACCOUNT TITLE Cash DEBIT CREDIT 78,400.00 Accounts Recelvable. 8,900.00 Office Supplies 2,500.00 Prepaid Insurance 6,000.00 Fumiture and Equipment 75,000.00 Accounts Payable 30,000.00 Loan Payable 60,000.00 Nestor Martel, Capital 60,000,00 Nestor Martel, Drawing 12,000.00 Legal Fees Earned 44,400.00 Salary Expense 5,500.00 Advertising Expense 3,600.00 Utilities Expense 1,500.00 Miscellaneous Expense 1,000.00 Total 194,400.00 194,400.00 Instruction: 1. Prepare the adjusting entries 2. Prepare the worksheet 3. Prepare the financial statements (Income Statement, Changes in Equity and Balance Sheet only) 4. Prepare the closing entries 5. Prepare the t-accounts for closing entries 6. Prepare the post-closing trial balance