INTRODUCTION TO BASIC ACCOUNTING Activity 3- Prepare the adjusting entries of Loyalty Company on December 31, 2020, the end of the annual accounting period based on the following independent data. 1. The Insurance Expense account had a debit balance on December 31, 2020 of P 108, 000, representing a 2-year fire insurance premium effective October 1, 2013. 2. Rent Revenue as credited for P 54, 000 on November 1, 2020 representing 9-month rent collected in advance. 3. Equipment on December 31, 2020 shows a balance of P 558, 000. Equipment acquired during the year was P 78, 000 on April 1, 2020. All equipment is to be depreciated at the rate of 25% per annum. 4. As of December 31, 2020, commissions already earned but not yet collected amounted to P 57,000. 5. Office Supplies costing P 27, 000 bought during the period was debited to the Office Supplies account. Of the amount, P 15,000 was consumed during the year. 6. Unearned Subscription account showed a credit balance of P 84, 000 per general ledger on December 31. Of this 60% had been actually earned during the period. 7. On December 31, 2020 a 60-day, 9% Notes Payable has a balance of P 360, 000 per genera ledger. The note was issued on December 5, 2013. No interest has been taken on this note. 8. Fees Collected in Advance has a balance of P 300, 000 of which 30% has been earned. 9. A 90-day, 12% Notes Receivable has a balance of P 300, 000 of which 30% has been earned. 10. The company pays all employees every Friday. The total payroll for the five-day work- week ending January 3, 2020 is P 225, 000