Question

Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing intomation for the adjusting entries, the accountant learned the following a. The capipany paid $2,000 on January 1 of the current year to have advertisements placed in the local monthly neighborhood paper. The ads were to be run from January through June. The bookkeeper dobited the full amount to Prepaid Advertising on January 1 b. Al March 31 of the current year, the following data relating to Construction Equipment were obtained from the records and supporting documents Construction equipment (at cost) Accumulated depreciation through March 31 of the prior year) Estimated annual depreciation for using the equipment 5 360.000 133,600 34.800 Required: 1. Record the adjusting entry for advertisements at March 31 of the current year, (if no entry is required for a transaction event, select "No journal entry required in the first account field) View transaction at Journal entry worksheet

Answer 1

Page:00 Date Dr (2000X 316) 1000 tooo max 3 34800 34800 Inswer (1){(2) journal particulous max 31 | Advertising expense prepaid advertising depreciation expense Accumulated depreciation (3) -Amount to be reported adventing expense = $1000 Amount to be reported reported as depreciation expense = $34800 balance sheet (4) poppaid advertising to be seported on $360000.-(413600+ 34800) $ 360000-$ 48400 $ 311600. as = =