The following is the post-closing trial balance of HAYAHAY dated March 31, 200A.

Debit Credit
Cash 70,000
Accounts Receivable 140,000
Allowance for doubtful accounts 1,400
Unused shop supplies 400
Shop equipment 120,000
Accum. Depreciation-shop equipment 24,000
Accounts payable 44,400
Notes payable 50,000
Accrued interest payable 600
HAYAHAY, Capital 210,000
Totals 330,400 330,400

For the month of April, the following are the transactions of HAYAHAYshop:
1. HAYAHAYwithdrew P10,000 cash from the business for his personal use.
2. Paid P16,000 insurance premium.
3. Paid P10,000 rent.
4. Total service rendered to various customers, P70,000. 40% of total sales are on cash basis and the
balance on open account.
5. Received promissory note from customer to replace P50,000 accounts receivable.
6. Collected in cash P90,000 of accounts receivable.
7. Paid the notes payable of P50,000 plus the P1,200 interest.
8. Purchased P1,200 shop supplies on cash basis.
9. Paid salaries, P12,000.

At the end of the month, the following information are available to effect adjustments:
a. The insurance in number 2 for P16,000 is applicable for six months starting April 1.
b. The rent of P10,000 paid in number 3 is for 3 months, starting April 1.
c. The notes receivable in number 5 is earning 10% interest per year. The note is dated April 1, and
is due on June 30.
d. Bad debt expense is estimated at 3% of accounts receivable balance.
e. The annual depreciation is P24,000.
f. The unused supplies balance is P100.
g. HAYAHAY failed to record cash sales of P5,000.

Required:
1. Prepare the journal entries to record the transactions.