PROBLEM 4: CLASSROOM ACTIVITY The trial balance of Sunray Co. is shown below. The following are the year-end adjustments: 1. 2% of the total accounts receivable is doubtful of collection. 2. Depreciation for the year is not yet recognized. The equipment has a 10-year useful life. Sunray Co. uses the straight line method. 3. The notes payable was issued on September 30, 20x1. Interest of 10% is due annually. 4. Sunray rents its office space. Monthly rental of P2,000 is due at the end of each month. Sunray Co. has not yet paid its rent for the month of December 31, 20x1. Requirements: a. Prepare the year-end adjusting entries. b. Complete the worksheet below