Question: DO IT! 2 Adjusting Entries for Deferrals DEFERRED INCOME CASE 1: On November 1, 2019, Borja (Sole Proprietor) leased a portion of its building for

DO IT! 2 Adjusting Entries for Deferrals DEFERRED INCOME CASE 1: On November 1, 2019, Borja (Sole Proprietor) leased a portion of its building for a monthly rental fee of P20,000. On the same day, Borja received a three-month advance rental of P60,000 from a tenant. The entry made upon receipt of payment from tenant was debit to Cash and credit to Unearned Rent Revenue amounting to P60,000. What is the adjusting entry needed on December 31, 2019? Answer: Debit Credit CASE 2: On November 1, 2019, Rodrigo (Sole Proprietor) leased a portion of its building for a monthly rental fee of P20,000. On the same day, Rodrigo received a three-month advance rental of P60,000 from a tenant. The entry made upon receipt of payment from tenant was debit to Cash and credit to Rent Revenue amounting to P50,000. What is the adjusting entry needed on December 31, 2019? Answer: Debit Credit DEFERRED EXPENSE CASE 1: In August 31, 2019, Von (Sole Proprietor) paid one year insurance premium of 24,000 covering the period September 1, 2019 to August 31, 2020. The entry upon payment was debited to PREPAID INSURANCE and credited to CASH. What is the adjusting entry on December 31, 2019? Answer: Debit Credit CASE 2: In August 31, 2019, Von (Sole Proprietor) paid one year insurance premium of 24,000 covering the period September 1, 2019 to August 31, 2020. The entry upon payment was debited to INSURANCE EXPENSE and credited to CASH. What is the adjusting entry on December 31, 2019? Answer: Debit Credit

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