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Hi! I need help with the adjusting entry and computation as the description on the following information was obtained from a review of the ledger
Hi! I need help with the adjusting entry and computation as the description on the following information was obtained from a review of the ledger and other records of 2 Moons Company at the close of the current fiscal year ending December 31, 2017
- The prepaid advertising account has a debit balance of P14,040 which represent the advance payment of a yearly contract for a uniform amount of space in 52 consecutive issues of a weekly publication. As of December 31, advertisements had appeared in 18 issues of publication.
- The company acquired an item of equipment for P288,000 at the beginning of the year. This equipment was estimated to have a life of 15 years with a residual value of P36,000.
- A delivery truck was purchased on June 30 at a total cost of P936,000. This truck was estimated to have a useful life of 10 years with the scrap value of P192,000.
- The company pays a total of P27,000 every Saturday for a six-day-work-week ending Saturday. The last payday was December 26.
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