(Solved): INSTRUCTIONS: (1) Complete the adjustments section of the worksheet [WS]. Use the following inform ...

INSTRUCTIONS: (1) Complete the adjustments section of the worksheet [WS]. Use the following information regarding unadjusted items. (a) On September 30, the firm received its utilities bill for the month of September amounting to P14,300. This remains to be unpaid at month-end. Record an adjustment for the utilities for the month of September. (b) On September 21, the firm received a 6% 90-day note for money lent to Ling Ying Wei amounting to P400,000. Record an adjustment for the accrued interest from the note for the month of September. (c) On September 30, an inventory of Warehouse Supplies and Office Supplies showed that items costing P127,000 and P12,000 were on hand respectively. Record an adjustment for the supplies used in September. (d) On July 1, 2021, the firm purchased a six-month insurance policy for P464,000. Record an adjustment for the expired insurance in September. Round-off answer to the nearest peso. (e) On April 1, 2021, the firm purchased an equipment to be used in the warehouse for P200,000. The equipment was estimated to have a useful life of five years and a salvage value of 10% of cost. Record an adjustment for depreciation on the equipment for September. (f) On April 1, 2021, the firm purchased equipment to be used in the office for P300,000. The furniture was estimated to have a useful life of five years with no salvage value. Record an adjustment for depreciation on the furniture for September. (g) The allowance for doubtful accounts is to be increased by 1% of accounts receivable. Record an adjustment for the expected loss from uncollectible accounts for the month of September. (h) On September 26, 2021, Tayane Alves contracted the firm to deliver specialized automobile part. The firm received P81,240 in advance from the customer. These parts have not been delivered by month-end and this transaction was recorded as a normal sale on the same date. Record an adjustment for the unearned revenue. (i) Based on a physical count, ending inventory was determined to be P6,481,600. Record an adjustment for the ending inventory. (2) Determine the net income or net loss for September and complete the worksheet [WS]. Vincent Fabron Automobiles distributes automobile parts to service stations and repair shops. The business is owned and managed by Vincent Fabron who started the business on April 1, 2021. Vincent Fabron Automobiles has a monthly accounting period. The Unadjusted Trial Balance was prepared on September 30, 2021, which is shown below. Account Name Dr Cr Cash 4,950,000 Petty Cash Fund 30,000 Notes Receivable, due March 31 2022 750,000 Accounts Receivable 7,010,000 Allowance for Doubtful Accounts 190,000 Interest Receivable 7,500 Merchandise Inventory 6,425,000 Warehouse Supplies 165,000 Office Supplies 35,000 Prepaid Insurance 232,000 Warehouse Equipment 990,000 Accumulated Depreciation - Warehouse Equipment 15,000 Office Equipment 470,000 Accumulated Depreciation - Office Equipment 25,000 Notes Payable, due June 30 2022 750,000 Accounts Payable 2,845,000 Interest Payable 20,000 Notes Payable, Long term 850,000 Vincent Fabron, Capital 14,838,500 Vincent Fabron, Drawing 1,532,500 Income Summary Sales 50,515,000 Sales Returns and Allowances 420,000 Interest Income 29,000 Purchases 23,150,000 Freight In 490,000 Purchase Returns and Allowances Purchase Discounts Delivery Expense 1,871,250 Depreciation Expense - Office Equipment 81,000 Depreciation Expense - Warehouse Equipment 170,000 Doubtful Accounts Expense 179,000 Insurance Expense 493,750 Interest Expense 200,000 Office Supplies Expense 61,000 Rent Expense 280,000 Repairs Expense 185,000 Salaries Expense - Warehouse 5,430,000 Salaries Expense - Office 4,250,000 Salaries Expense - Sales 7,585,000 SSS, Philhealth, Pagibig Expenses 1,580,000 Supplies Expense - Warehouse 290,000 Telephone Expense 164,000 Travel Expense - Sales 1,200,000 Utilities Expense 400,000 71,077,000 Rent Expense, Repairs Expense, and Utilities Expense are shared as follows: 10% for the office, 30% for the store, and 60% for the warehouse. An Excel spreadsheet is provided for you with the following tabs: WS (for 10-column worksheet) 537,500 462,000 71,077,000