The following data were gathered in analyzing the accounts of Topaz Co. on December 31, 2020. 1. Supplies of P25,000 were purchased during the year and were debited to Supplies account. On December 31, supplies of P8,500 are on hand 2. The Prepaid Insurance account shows a balance of P24,000 representing the cost of a two-year insurance policy dated May 31, 2020. 3. On November 1, 2020, the company leased a portion of its space and received 27,000, representing three-months rent beginning on that date. The lease is an operating lease and the amount recelved was credited to Rent Revenue 4. The company purchased office equipment on March 1, 2020 costing P400,000. The assets have an estimated useful life of 5 years and salvage value of P40,000. The company uses the sum-of-the-years digit method and depreciates to the nearest month. 5. It is estimated that 2% of accounts receivable at the end of the year is uncollectible. Accounts receivable balance on December 31, 2020 is P450,000. The Allowance for Uncollectible Accounts shows a credit balance before adjustment of P3,000. 6. On December 1, the company issued a 90-day, 12% note for P200,000. The interest is payable on maturity. 7. Merchandise inventory on December 31, 2020 amounted to P480,000. At the end of the year, selected account balances were as follows: Purchases- P900,000; Freight- in-P20,000; Purchase Retums and Allowances- P25,000. Required: 1. Adjusting entries on December 31, 2020. 2. Appropriate reversing entries on January 1, 2021 assuming that the entity prepares reversing entries. 1. A law firm began operation in July with office supplies of P192,000. During the month, the firm purchased supplies of P232,000. On July 31, supplies on hand total P172,000. The adjusting entry on July 31 will result in supplies expense of: 2. On December 31, 2019, the Garnet Company had a P990,000 balance in its advertising expense account before any year end-adjustments relating to the following ‘ Radio advertising spots broadcast during December 2019 were billed to Gamet on January 4, 2020. The invoice cost of P50,000 was paid on January 15, 2020. * Included in the P990,000 is P60,000 for newspaper advertising for a January 2020 sales promotional campaign Garnet's advertising expense for year ended Dec. 31, 2019 should be 3. On November 1, 2019, Amethyst Company paid P72,000 to renew its insurance policy for three years. On December 31, 2019, Amethyst’s unadjusted trial balance showed a balance of P1,800 for prepaid insurance and P88,200 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense, respectively in Amethyst’s December 31, 2019 financial statements? 4. Aquamarine Company collected P24,700 in interest during 2019. Aquamarine showed P10,600 in interest receivable on its December 31, 2019, balance sheet and P14,300 on December 31, 2018. How much Is the interest revenue reported on Aquamarine’s income statement for 201975. On December 31, 2019, the unadjusted trial balance shows office supplies of P24,000 and office supplies expense of P40,400. The December 31, adjusting entry recorded office supplies expense of P6,800. After the December entries have been posted, what is the proper balance in the office supplies account on December 31, 2019? 6. Ruby Company sells service contracts for personal computer. The service contracts are for one-year, two-year, or three-year period. All sales are for cash and all receipts are credited to uneamed service contract revenues. This account had a balance of P1,440,000 on December 31, 2019 before year end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of P360,000 on December 31, 2019. Service contracts still outstanding at December 31, 2019 expire as follows: During 2020 P 300,000 During 2021 450,000 During 2022 200,000 What amount should be reported as unearned service contract revenue in Ruby’s December 31, 2019 balance sheet? 7. Citrine Company recorded accrued salaries of P54,000 on December 31, 2019. During 2019, Citrine paid salaries of P872,000. Unpaid salaries on December 31, 2018 amounted to P79,000. Citrine prepares adjustments only on December 31, and reversing entries on January 1. The balance of the salaries expense account that would appear in the balance sheet at December 31, 2019 is: 8. Zircon Company began operations on January 1, 2019, with P1,000,000 from the issuance of stock and borrowed funds of P150,000. Net income for 2019 was P50,000 and Zircon paid P4,000 cash dividend on December 15. No additional activities affected owner’s equity in 2019. At December 31, 2019, Zircon liabilities had increased to P188,000. In Zircon ‘s December 31, 2019 balance sheet, total assets should be reported at: 9. Pearl Company purchased a computer hardware on January 1, 2019 for P800,000. The economic life and residual value are estimated to be 5 years and P80,000, respectively. What is the depreciation expense In 2019 using straight-line method? 10. Using the information in no. 10, what is the depreciation charges in 2019, assuming the use of double declining balance method?