Adjustment Data: 1 The P360,000 prepaid advertising represents expenditure made on Nov. 1,2017 for monthly advertising over the next 18 months. 2 A count of the engineering supplies at Dec. 31,2017 amounted to 90,000 . 3 Depreciation on the surveying equipment amounted to 160,000 4 One-third of the unearned survey revenues have been earned at year-end. 5 At year-end, salaries in the amount of 140,000 have accrued. 6 Interest of 60,000 on the notes payable has accrued at year-end. Prepare the adjustments on the worksheet and complete the worksheet.
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Prepaid Advertising: The company paid P360,000 for 18 months of advertising on Nov. 1, 2017. This means that by Dec. 31, 2017, two months of advertising have been used up. The monthly cost of advertising is P360,000/18 = P20,000. Therefore, the adjustment is to Show more…
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