Provide the adjusting journal entries at year-end 2015 for the following indepen dent situations using the perspective of the business (assume calendar year).
1. On March 1, 2015, Xylophone Tutorials borrowed money from Metrobank to be used in business, and issued an inte rest-bearing note for the 285,000, net of 2% processing fee. The bank loan is payable after three years with an annual interest of 15%.
2. Guitar Café received the following bills covering the month of December 2015 on January 3, 2016: advertising of 19,800, repairs of P2,000, and utilities of P4,860.
3. Harp Beauty Shop pays salaries for the first half of the month every 25th day of the current month and the second half every 10th day of the succeeding month. The salaries for the second half of December 2015 amounted to P35,000.
4. Drumstick Chickens rendered catering services last December 15, 2015. The contract price amounted to 75,000. Since no payment had been received yet, Drumstick did not make any journal entry last December 15, 2015.
5. On May 1, 2015, Piano Services received a P450,000, 9% note for selling equipment not being used anymore in the business. The note will be payable in two years.
