Case No. 7. (Adjusting Journal Entries) From the following given data, prepare an adjusting journal entry for the year ended December 31, 20A:
1. Purchase of supplies for \( P 3,000 \). At the end of the year, \( P 1,000 \) cost of supplies were actually used. Expense method was used in payment of supplies.
2. A P48,000 6\%,120-day note was received from a client dated Nov. 1, 20A. The interest was not yet collected at the end of the accounting period.
3. Before the adjustments, the balance of laundry supplies inventory was \( \mathrm{P} 35,000 \). Physical count of supplies inventory was P15,000.
4. An office equipment was acquired on May 31, 20A for P150,000. The office equipment has an estimated life of 5 years without scrap value.
5. A copying machine was rented on Nov. 30, 20A at P1.00/copy of production. It reported to have produced 300 copies as of December 31, 20A. No payment was made as of this date.
6. Signed an advertising contract on December \( 1,20 A \) with a radio station for \( P 3,500 \). The contract will commence upon payment on December 15, 20A and will terminate on January 15, 208. Expense method is used in recording prepayment.
7. Supplies inventory showed a balance of \( P 40,000 \) as of December 31, 20A. During the year, P25,000 cost of supplies were purchased and at the end of December 31, 208, P20,000 were found to be on hand.
