Problem #4 Preparing the Adjusting Entries at Year-End On Nov. 30, 2019, the end of fiscal year, the following information is available to enable you to prepare Edgar Detoya Research and Development adjusting entries: The Supplies account showed a beginning balance of P21,740. Purchases during the year were P45,260. The ending inventory revealed supplies on hand of P 13,970. b. The Prepaid Insurance account showed the following on November 30: Beginning balance P35,800 July 1 42,000 October 1 72,720 The beginning balance represented the unexpired portion of a one-year policy purchased in September 2018. The July 1 entry represented a new one-year policy, and the Oct. 1 entry is additional coverage in the form of a three-year policy. The following table contains the cost and annual depreciation for buildings and equipment, all of which the entity purchased before the current year: Account Cost Annual Depreciation Buildings P2.860,000 P145.000 Equipment 3,740,000 354,000 d. On September 1, the entity completed negotiations with a client and accepted an advance of P168,000 for services to be performed next year. The P168,000 was credited to Unearned Service Revenues. e The entity calculated that as of November 30, it had earned P40,000 on an P110,000 contract that would be completed and billed in January. Among the liabilities of the entity is a note payable in the amount of P3,000,000. On November 30, the accrued interest on this note amounted to P150,000 Assume that on, December 3, a Saturday, the entity, which is on a six-day workweek, will pay its regular salaried employees P123,000. h On November 29, the entity completed negotiations and signed a contract to provide services to a new client at an annual rate of P175,000 Problem #3 Preparing Adjusting Entries at Year-End The Gloria Dimen Illustrators presented the following information pertaining to accounts that will need adjustments for its Nov. 30, 2019 year-end financial statements: a. On Oct. 1, 2019, Gloria Dimen Illustrators paid P10,800 for 6-months' insurance premiums. b. The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on Nov. 30, 2019 totaled P12,800. c. Gloria Dimen illustrators received P22,800 on Nov. 1, 2019 from a customer for services to be rendered during the months of November, December, January, and February d. Gloria Dimen acquired Office Equipment costing P352,800 on Apr. 1, 2019. The equipment is expected to last 5 years after which it will be worthless. e Assume that Nov. 30, 2019 is a Friday and that Gloria Dimen pays its employees a total of P87,500 on Saturday. Required: 1. Prepare the adjusting entries. 2. Prepare the Dec. 1, 2019 entry to record the payment of the salaries