Sheet1 Sheet2 Prepaid Expenses Prepaid Rent On May 1, Weddings"R"Uspaid P8,000 for two month's rent in advance. This expenditure resulted to an asset consisting of the right to occupy the office for two months. Aportion of the set expires and becomes an expense each day. By May 31, one half of the authod expired, and hold we trated as an expense Prepard Insurance Weddings "R"Us acquired a one-year comprehensive insurance coverage on the service Vehicle and paid P14,400 premium. Ina manner similar to prepaid rent, prepaid insurance offers protection that expires daily, Supplies On May 8, Weddings"R"Us purchased supplies, P18.000. During the month, the entity used supplies in the process of performing services for clients. There is no need to account for the supplies every day since the financial statements will not be prepared until the month end. At the end of the accounting period. Perce Manalo makes a careful physical inventory of the supplies, the inventory con showed that supplier costing P15.000 are still on hand Service Vehicle and Office Equipment Suppose that Weddings *** Us estimated that service Vehicle, which was bought on May 4 for $20,000, will last for seven years (84 months) and with a salvage value of P84.000. The office equipment that was acquired on May 5 for 60000 will have a useful life of five years (60 monthsand will be worthless at that time. Unand Revenue On May 15, Weddings "R"Us received P10,000 as an advance payment for referrals made. Assume that by the end of the months. one of the three couples referred has already taken their marriage vows and as a result the amount of 4,000 pertaining to the referred event has been realized, Accruals Accrued Salaries Entities pay their employees at regular intervals. It can be weekly, monthly or monthly, Weekly payrolls are wally made on Fridays (for a five day workweek) watunlay for a six day workwk. The office sistem and the contentive were paid lanes on May 13 and 27. Each of the salary note 7,00 per month of P100 day. On May 2.P.Monele borrowed P210,000 from Metrobank. She lood promiy note that carried 20 interest per num. Both the interest and principal will payable in one year. The need to the bank acies interest 20% anually. At the end of May, Pere Manalowed the bank 3.500we computation for interest in addition to the P210,000 loan Acredintre Acered Revenue Suppose that Weddip *** Us apreed to arrange a rush bur imple ewil wedding for a madly in love couple in the afternoon of May 1. The entity intended to charge fees of Ps.100 for the services, which is camned bot billed Omitting Adjustment On July 1, 2020. Cabuyao Manpower Services enned by Warlito Blanche borrowed P100,000 by signing an 18-month note at 10% interes per annum. The principal and interest are to repaid when the mote matures on Dec 31, 2020 Sheet1 Sheet2 a b Prepare the adjusting entry for Christine Gamba Cargo under each of the following for the year ending December 31, 2020: Paid P24,000 for a 1-year life insurance policy to commence on Sept 1. The amount of premium was debited to Prepaid Insurance. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1. 2018 Paid P160,000 cash to purchase a delivery van on Jan. I. The van was expected to have a 3-year life and a P10,000 salvage value. Depreciation is computed on a straight line basis, Received an P18,000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1. Purchased P6,400 of supplies on account. At year's end, P750 of supplies remained on hand. Invested P90,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May I and carried a 1-year term to maturity. Paid P78,000 cash in advance on Sept for a 1-year lease on office space. d c f Sheet1 Sheet2 Prepaid Expenses Prepaid Rent On May 1, Weddings"R"Uspaid P8,000 for two month's rent in advance. This expenditure resulted to an asset consisting of the right to occupy the office for two months. Aportion of the set expires and becomes an expense each day. By May 31, one half of the authod expired, and hold we trated as an expense Prepard Insurance Weddings "R"Us acquired a one-year comprehensive insurance coverage on the service Vehicle and paid P14,400 premium. Ina manner similar to prepaid rent, prepaid insurance offers protection that expires daily, Supplies On May 8, Weddings"R"Us purchased supplies, P18.000. During the month, the entity used supplies in the process of performing services for clients. There is no need to account for the supplies every day since the financial statements will not be prepared until the month end. At the end of the accounting period. Perce Manalo makes a careful physical inventory of the supplies, the inventory con showed that supplier costing P15.000 are still on hand Service Vehicle and Office Equipment Suppose that Weddings *** Us estimated that service Vehicle, which was bought on May 4 for $20,000, will last for seven years (84 months) and with a salvage value of P84.000. The office equipment that was acquired on May 5 for 60000 will have a useful life of five years (60 monthsand will be worthless at that time. Unand Revenue On May 15, Weddings "R"Us received P10,000 as an advance payment for referrals made. Assume that by the end of the months. one of the three couples referred has already taken their marriage vows and as a result the amount of 4,000 pertaining to the referred event has been realized, Accruals Accrued Salaries Entities pay their employees at regular intervals. It can be weekly, monthly or monthly, Weekly payrolls are wally made on Fridays (for a five day workweek) watunlay for a six day workwk. The office sistem and the contentive were paid lanes on May 13 and 27. Each of the salary note 7,00 per month of P100 day. On May 2.P.Monele borrowed P210,000 from Metrobank. She lood promiy note that carried 20 interest per num. Both the interest and principal will payable in one year. The need to the bank acies interest 20% anually. At the end of May, Pere Manalowed the bank 3.500we computation for interest in addition to the P210,000 loan Acredintre Acered Revenue Suppose that Weddip *** Us apreed to arrange a rush bur imple ewil wedding for a madly in love couple in the afternoon of May 1. The entity intended to charge fees of Ps.100 for the services, which is camned bot billed Omitting Adjustment On July 1, 2020. Cabuyao Manpower Services enned by Warlito Blanche borrowed P100,000 by signing an 18-month note at 10% interes per annum. The principal and interest are to repaid when the mote matures on Dec 31, 2020 Sheet1 Sheet2 a b Prepare the adjusting entry for Christine Gamba Cargo under each of the following for the year ending December 31, 2020: Paid P24,000 for a 1-year life insurance policy to commence on Sept 1. The amount of premium was debited to Prepaid Insurance. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on Oct. 1. 2018 Paid P160,000 cash to purchase a delivery van on Jan. I. The van was expected to have a 3-year life and a P10,000 salvage value. Depreciation is computed on a straight line basis, Received an P18,000 cash advance for a contract to provide services in the future. The contract required a 1-year commitment, starting April 1. Purchased P6,400 of supplies on account. At year's end, P750 of supplies remained on hand. Invested P90,000 cash in a certificate of deposit that paid 4% annual interest. The certificate was acquired on May I and carried a 1-year term to maturity. Paid P78,000 cash in advance on Sept for a 1-year lease on office space. d c f