Problem #7 Preparing the Worksheet, Adjusting and Closing Entries, and Financial Statements The ledger accounts of the Erlinda Seechua Company for the year ended Dec 31, 2012 are as follows: Accu. Depreciation-off. Bldg. Accu. Depreciation-off. Equipt. Accounts Receivable Accounts Payable Cash Transportation in Insurance Expense Interest Expense Seechua, Capital Seechua, Withdrawals Land Merchandise Inventory Mortgage Payable P 100,000 Notes Payable due in 2 yrs. P 200,000 150,000 Office Building 1,600,000 136,000 Office Equipment 570,000 74,000 Office Supplies 42,000 72,000 Prepaid Advertising 75,000 72,000 Purchases Discounts 172,000 25,000 Purchases Rets. & Allow. 133,000 208,000 Purchases 2,643,000 1,510,000 Salaries Expense 862,000 200,000 Sales Discounts 161,000 400,000 Sales Returns and Allow. 187,000 598,000 Sales 4,600,000 1,100,000 Travel Expense 188,000 Additional information: a. Office Supplies consumed during the year amounted to P17,000. b. Advertising expense in the amount of P25,000 has expired during the year. C. Salaries of P21,000 have accrued as at Dec 31, 2012. d. Depreciation on the office building and on the office equipment amounted to P15,000 and P20,000, respectively. e. The Dec. 31, 2012 ending inventory is P723,000. Required: 1. Prepare the worksheet. 2. Prepare the financial statements. 3. Prepare the adjusting and closing entries