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The May 31, 2009 trial balance for Lucena Bacalso Surveyors is presented as follows:
Lucena BacalsoSurveyors
Trial Balance
May 31, 2009
Cash P 210,000
Accounts Receivable 930,000
Prepaid Advertising 360,000
Engineering Supplies 270,000
Survey Equipment 1,890,000
Accumulated Depreciation-Survey Equipment P 640,000
Accounts Payable 190,000
Unearned Survey Revenue 120,000
Notes Payable 500,000
Bacalso, Capital 1,120,000
Bacalso, Withdrawals 700,000
Survey Revenues 6,510,000
Salaries Expense 3,270,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous Expense 80,000
--------------------------------------------------------------------------------------------------------------------
Totals P 9,080,000 P9,080,000
The ff. info. Pertaining to the year-end adjustment is available:
a. The P 360,000 prepaid advertising represents expenditure made on Nov. 1 2009 for monthly
Advertising over the next 18 months.
b. A count of the engineering supplies at May 31,2009 amounted to 90,000
c. Depreciation on the surveying equipment amounted to 160,000
d. One-third of the unearned survey revenues has been earned at the year-end
e. At year-end salaries in the amount of 140,000 have accrued
f. Interest of 60,000 on the notes payable has accrued at year-end
My answers.
a. Debit: Advertising expense 140,000
Credit: Prepaid Advertising 140,000
b. Debit: Engineering Supply expense 180,000
Credit: Engineering Supply: 180,000
c. Debit: Depreciation Expense 160,000
Credit: Accumulated Depreciation 160,000
d. Debit: Survey Revenue 40,000
Credit: Unearned Survey Revenue 40,000
e. Debit: Salary Expense 140,000
Credit: Salaries Payable 140,000
f. Debit: Interest expense 60,000
Credit: Interest Payable 60,000
Please correct me if I'm wrong.
