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Instructions: Provide the necessary adjusting entries as of December 31, 2009 and appropriate reversing entries of January 1, 2020 assuming: 1. Transactions were originally record in asset and liability accounts. 2. Transactions are originally recording in expense and revenue accounts. Exercise 1-2 (Adjusting and Reversing Entries) DEF Merchandising follows the policy of recording prepayments to revenue and expenses accounts and reverse appropriate adjusting entries at the beginning of a new accounting period. The records of the business show the following: a. On March 1, 2009, DEF borrowed P2, 000,000 Cash from the Bank of the Philippines by issuing a 6% note payable in one year. The interest is payable upon mature. b. On September 1, 2009 =, DEF paid P360, 000 representing rental for one year starting on this date. c. DEF pays all employees every Friday. The total payroll for the five workweek ending January 3, 2010 is P150, 000. Instructions: Prepare the adjusting entries. Exercise 1-3 (Adjusting Entries) Give the accounts to be credited to complete the adjusting entries below: Debit Credit 1. Uncollectible Account Expense 2. Prepaid Rent 3. Office Supplies on Hand 4. Salary Expense 5. Insurance Expense 6. Interest Receivable 7. Interest Expense B. Rent Income 9. Depreciation Expense 10. Inventory, end