V. Adjusting Entries (2 points per entry) DEF Merchandising follows the policy of recording prepayments in revenue and expense accounts and reverses appropriate adjusting entries at the beginning of the new accounting period. The record of the business show the following: a. On September 1, 2021, DEF borrowed P2,000,000 cash from the Bank of the Philippines by issuing a 6% note payable in one year. The interest is payable upon maturity of the note. b. On February 1, 2021, DEF paid insurance premium of P72,000 covering a period of three years beginning on this date. c. On December 1, 2021, DEF paid P360,000 representing the rental for one year starting on this date. d. DEF pays all employees every Friday. The total payroll for the five-day workweek ending January 3, 2022 is P450,000 e. DEF subleases part of its office space for P30,000 per month. On November 1, 2021, it received rental payments for six months starting on this date