Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the transaction provides another year-end. 1. Arizona Restaurant holds a 150-day 18% note for ₱75,000 dated September 2, 2021. The principal amount and interest on the note are collectible upon maturity. 2. On Octob
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1. Arizona Restaurant holds a 150-day 18% note for ₱75,000 dated September 2, 2021. The principal amount and interest on the note are collectible upon maturity.
2. On October 15, 2021, Colorado Janitorial Services borrowed money from the bank amounting to ₱180,000 by issuing a 6-month 15% note for the amount. Both principal amount and interest are to be paid upon maturity of the note.
3. Florida Telecommunications incurs salaries for its 18 contractual employees at the rate of ₱750 per day/employee. Salaries have not yet been paid for 4 days as of December 31, 2021.
4. Georgia People's Inn charges its tenants the following rates: ₱500 per day for transient occupants and ₱5,000 per month for the monthly tenants. As of December 31, 2021, the firm has not received yet the payment of five (5) transient occupants for the period from December 18-31, 2021.
5. Hawail Catering Services is entitled to a 15% commion which is always received on the 5th day following the month of sale, based on its monthly sale of the products of Gourmet Corporation. Sales of Pollux of Gourmet's products for the last two months of 2021 are as follows: November, ₱375,000; December, ₱420,000.
6. Indiana Company received advance rental for 30 months amounting to ₱168,000 to take effect starting March 15, 2021. The amount was credited to a liability account.
7. Louisiana Photocopying Center's Office Supplies on January 1, 2021 has a balance of ₱7,500. Purchases of supplies during the year amounted to P35,510 while return of defective supplies amounted to ₱4,250. At year end, supplies worth ₱8,760 remain unused.
8. Prepaid Advertising for ₱180,000 was debited by Maryland Hillside Hotel on May 1, 2021 for a 2-year advertising contract.
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