[nofear13]

[F]I have sim that I can't get to balance my ADJUSTMENTS on my WORKSHEET:(
the following are the given of my TRIAL BALANCE;

Cash $ 210,000(Dr.)
Accounts Receivable 930,000(Dr.)
Prepaid Advertising 360,000(Dr.)
Engineering Supplies 270,000(Dr.)
Survey Equipment 1,890,000(Dr.)
Accum. Depreciation-Survey Equipt. $ 640,000(Cr.)
Accounts Payable 190,000(Cr.)
Unearned Survey Revenues 120,000(Cr.)
Note Payable 500,000(Cr.)
Bacalso, Capital 1,120,000(Cr.)
Bacalso, withdrawals 700,000(Dr.)
Survey Rev. 6,510,000(Cr.)
Salaries Exp. 3,270,000(Dr.)
Rent Exp. 960,000(Dr.)
Insurance exp. 250,000(Dr.)
Utilities Exp. 160,000(Dr.)
Miscellaneous Exp. 80,000(Dr.)
---------------------------------------
Totals $9,080,000 $9,080,000
======== =======

The Following information pertaining to the year-end adjustments is available:

a. The $360,000 prepaid advertising represents expenditure made on Nov. 1, 2005 for
monthly advertising over the next 18 months.
b. A count of the engineering supplies at May 31, 2006 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 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.

Thank you to who will answer my Question:)

[CaptainForest]

Your trial balance is balancing is seems before adjustments.

What do you think the Journal Entries for those adjustments are?

[nofear13]

I don't know if this is right but tell me what is wrong on my journal and . Give me also my adjustment on this account... TnKz...

_date______ Account title & exp. _____ Dr. ______ Cr.
2005
a.) nov. 1 ___ expenditure exp. _____ 360,000
_____________ Prepaid adver. _______________ 360,000

2006
b.) May. 31 ___Accr. Dep. ___________ 90,000
______________ Enginnering Supp. ____________ 90,000

c.) _____31 ___Dep. Exp. __________ 160,000
______________ Survey. Equp. ______________ 160,000

d.) _____31___ Cash _______________ 40,000
______________ Unearned ser. rev. ___________ 40,000

e.) _____31___ Accrued exp. _________ 140,000
______________ Salaries exp. _______________ 140,000

F.) _____31___ Interest ______________ 60,000
______________ Note payable ________________ 60,000

[CaptainForest]

A) What is the year end that you are working with? Without that piece of information, once can't solve the question. Is it Oct. 31, 2006? More? I think that you year end MIGHT be May 31, 2006 based on other questions.

Therefore, assuming a May 31, 2006 year end…

The Adjusting Journal Entry would be:
Dr. Advertising Expense 140,000
Cr. Prepaid Advertising 140,000

Calculation: 360,000 / 18 x 7 = 140,000


B)
Dr. Eng Supplies Expense 180,000
Cr. Eng Supplies 180,000

Calculation: 270,000 – 90,000 left = 180,000 used up


C)
Dr. Dep Exp 160,000
Cr. Accumulated Depreciation – Survey Eqp. 160,000


D)
Dr. Unearned Survey Revenues 40,000
Cr. Survey Revenue 40,000

Notes: You had already received the cash when you recorded the unearned account. Now you have earned it, so you transfer it from the unearned account to the earned account.


E)
Dr. Salaries Expense 140,000
Cr. Salaries Payable 140,000

Notes: Basically this is saying, you owe 140,000 to your employees at year end and you haven't yet made a journal entry to reflect this.


F)
Dr. Interest Expense 60,000
Cr. Interest Payable 60,000

Notes: This is interest, on top of the note payable.

[nofear13]

Thank you For Answering my Question. This was a great help for me.. thanks again!:)

[CaptainForest]

You're welcome