ACTIVITY EVALUATION DIRECTION: Prepare all the necessary journal entries. Complete a 10-column working paper. Prepare all required Financial Statements. The unadjusted trial balance of MARUPOK Bags as at December 31, 2019 follows: MARUPOK Bags Trial Balance December 31, 2019 Credit Debit 72,000 136,000 42,000 646,000 48,000 75,000 400,000 1,600,000 100,000 570,000 Accounts Cash Accounts Receivable Office Supplies Merchandise Inventory Allowance for Doubtful Accounts Prepaid Advertising Land Office Building Accumulated Depreciation - Off. BLDG Office Equipment Accumulated Depreciation - Off. EQPT Accounts Payable Notes Payable - 2 years Mortgage Payable MARUPOK, Capital MARUPOK, Withdrawals Sales Sales Discount Sales Returns and Allowance Purchases Purchase Discount Purchase Returns and Allowance 150,000 74,000 200,000 1,100,000 1,713,892 200,000 4,107,143 161,000 166,964 2,359,821 172,000 118,750 Credit Accounts Freight in Insurance Expense Salaries Expense Travel Expense Interest Expense TOTAL Debit 72,000 25,000 862,000 188,000 208.000 7.783.785 7.783.785 Additional information at year-end: 1. Office supplies on hand, P17,000. 2. Prepaid advertising is for 3 years starting August 31, 2019. 3. Unpaid salaries amounted to P21,000. 4. Office building had a salvage value of P100,000 and a 15 years useful life. 5. Office equipment had a residual value of P70,000 and a 10 year useful life. 6. Insurance had a 5-year coverage from April 30, 2019. 7. MARUPOK estimates bad debts at 10% of the outstanding Accounts Receivable at year end. 8. At the end of the year, a physical count of the merchandise inventory revealed P723,000 inventory on hand