Reference no: EM132942722

Question - Read and analyze the transaction below then prepare the appropriate adjusting entries for each transaction.

Flipper art closes its books every December 31 and correspondingly prepares year-end adjusting entries. Make appropriate adjusting entry for each of the following items.

1. Last October 1, the company paid one-year insurance for its building to sure life insurance amounting to Php25,200. The asset method was used have a great day insurance payment.

2. On February 28, the company the flora and Fauna Co Php 96,000 at 12 % interest per annum. Interest will be paid upon maturity of the debt.

3. Five workers are paid every Saturday for six-day work at P404 a day. December 31, falls on a Friday.

4. Last October 31, the company signed Shizet advertising for a three-year advertising campaign with the aim to promote its services for the next 3 years. In line with this, the company paid Php 1,800,000 contract. The asset method was used to record payment.

5. On March 31, the company leased an office space in Baguio City. It received Php 264,000 for annual rent and credited the amount to unearned rent.

6. Supplies purchased during the year amounted to Php 18,000, of which 25 percent remained on hand at the end of the year.

7. Accounts receivable has abalance pf Php 101,000, pf which 6 percent is estimated uncollectable. The allowance for doubtful accounts has a credit balance of Php 2,300 before adjustments.

8. Beneco Bill amounting to Php 3,888 was received on Decmeber 31. It will be paid on January 10 of the following year.

9. On March 15, the company borrowed Php 800,000 from banco De Oro at 9% per annum. No interest ahs been paid to Banco De Oro.

10. The company's island and building cost Php 16,000,000. 25 % of the cost allotted to the land and the remaining balance was allotted to the building The building has an estimated useful life of 25 years and a salvage value of Php500,000.