Problem #7 Preparing the Worksheet, Adjusting and Closing Entries, and Financial Statements The ledger accounts of the B. Onate Company for the year ended Dec. 31, 2007 are as follows: Additional information: a. Office supplies consumed during the year amounted to P17,000. b. Advertising expense in the amount of P25,000 has expired during the year. c. Salaries of P21,000 have accrued as at Dec. 31, 2007. d. Depreciation on the office building and on the office equipment amounted to P15,00 and P20,000, respectively. e. The Dec. 31, 2007 ending inventory is P723,000. Required: 1. Prepare the worksheet. 2. Prepare the financial statements. 3. Prepare the adjusting and closing entries