Adjusting Journal Entries. Prepare the adjusting journal entries for the case below. Please show computations below each journal entry.
Extracted text: Albert Fernandez maintains 3 small row house units that he rents out to tenants. Below is a trial balance he prepared himself. He understands that he needs to make some adjusting entries at the end of the year. However, is unsure how to make the adjustments and he came up to you for assistance. Fernandez Housing Trial Balance December 31, 2018 Cash P503,000.00 Account receivable 15,000.00 Office supplies Prepaid insurance Housing unit Accounts payable Unearned rental revenue 20,000.00 24,000.00 500,000.00 P1,000.00 21,000.00 Fernandez, capital Rent income 1,000,000.00 75,000.00 Salaries expense Utilities expense Total 25,000.00 10,000.00 P1,097,000.00 P1,097,000.00 Additional information: a. 5% of the accounts receivable above is doubtful of collection. b. The Prepaid Insurance above pertains to an advance one-year payment of P24,000.00 on December 1, 2018. c. The Housing Unit was acquired on June 1, 2018 and is estimated to last for 10 years with no salvage value. d. Fernandez Housing's caretaker's salary is P500 daily, and he works for 7 days a week. The salary is given in bulk every 10th and 25th of the month. e. One of Fernandez Housing's tenants paid him P21,000 as advance payment for one year on July 1, 2018.