Adjusting entries?pls help!!!!?

Question

please adjust the entries below:

For the year ended December 31,2007

a. Feb. 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-year term.

b. Nov 1 Purchased a 1 year P50,000 certificate of deposit that paid a 6% annual rate of interest.

please give the adjusting entries.

Answer 1

For the year ended December 31, 2007

a. Feb. 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-year term.

Feb 1 to Dec 31 is 11 months

Dr  Interest expense P8,250 (100,000 x 9% x 11/12)

Cr  Interest payable P8,250

b. Nov 1 Purchased a 1 year P50,000 certificate of deposit that paid a 6% annual rate of interest

Dr  Interest receivable P500 (50,000 x 6% x 2/12)

Cr  Interest income P500