Reference no: EM132717375

The information listed below was obtained from the accounting records of Cecil Company as of June 30, 2018, the end of the company's fiscal year.

(a) Payments to vendors of P20,000 were made for purchases on account during the year and were not recorded.

(b) On June 28, 2018, Cecil received P45,000 in advance for services to be performed in July 2018. The P45,000 was credited to Sales Revenue.

(c) Building and land were purchased in 2007 for P7,500,000. The building's fair market value was P6,200,000 at the time of purchase. The building is being depreciated over a 25-year life using the straight-line method, and assuming no salvage value.

(d) On June 1, 2018, P120,000 was loaned to a prospective client on a 6-month note with interest at an annual rate of 7 percent. Interest is due at maturity.

(e) Assume June 30, 2018 is a Thursday and Salaries and wages for weekly earners amounting to P15,000 is paid on Saturday July 2, 2018.

(f) The office supplies account has a balance of P31,100. An inventory of supplies revealed a total of P6,020.

Problem 1: Prepare journal entries to adjust the books of Cecil Company at June 30, 2018.