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Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. The company paid $3,500 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 debited the full amount to Prepaid Advertising on January 1. b. At 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 $510,000 145,600 40,800 Required: 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. 3. What amounts should be reported on the current year's income statement for the following items? 4. What amounts should be reported on the current year's balance sheet for the following items? Complete this question by entering your answers in the tabs below. Reqs 1 and 2 Req 3 Req 4 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. The company paid $3,500 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 debited the full amount to Prepaid Advertising on January 1. b. At 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 $510,000 145,600 40,800 Required: 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. 3. What amounts should be reported on the current year's income statement for the following items? 4. What amounts should be reported on the current year's balance sheet for the following items? Complete this question by entering your answers in the tabs below. Reqs 1 and 2 Req 3 Req 4 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. The company paid $3,500 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 debited the full amount to Prepaid Advertising on January 1. b. At 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 $510,000 145,600 40,800 Required: 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. 3. What amounts should be reported on the current year's income statement for the following items? 4. What amounts should be reported on the current year's balance sheet for the following items? Complete this question by entering your answers in the tabs below. Reqs 1 and 2 Req 3 Req 4 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal ontus workaboot
Transcribed Image Text:Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. The company paid $3,500 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 debited the full amount to Prepaid Advertising on January 1. b. At 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 $510,000 145,600 40,800 Required: 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. 3. What amounts should be reported on the current year's income statement for the following items? 4. What amounts should be reported on the current year's balance sheet for the following items? Complete this question by entering your answers in the tabs below. Reqs 1 and 2 Req 3 Req 4 1. Record the adjusting entry for advertisements at March 31 of the current year. 2. Record the adjusting entry for the use of construction equipment during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal ontus workaboot
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