On December 31, 2015, prepare the necessary adjusting entries for

Red Carpet Company:

a) Depreciation of office equipment, P 11,800

Depreciation expense-office equipment 11,800

Accumulated Depreciation 11,800
To record depreciation expense on office equip.
b) The Unearned Rent account at December 31 is P 10,500 representing the
receipt of an advance on December 1, of five months' rent from tenants.

Rent Income 2,100

Unearned Rent Income 2,100
10,500*1/5= 2,100
c) To record rent that already earned Fees
accrued but unbilled at December 31, amounted to P 20,000.

Fees receivable 20,000

Fees earned 20,000
To record accrued fees earned.

d) Salaries accrued but not paid at December 31, amounted to P 5,000

Salaries expense 5,000

Salaries payable 5,000
To record accrued salaries payable

e) The Supplies Expense account balance on December 31, amounted to P 4,000. The
supplies on hand on December 31, amounted to P 1,000
Supplies 1,000
Supplies Expense 1,000
To record supplies not consumed