Question
How would I go about making the following adjustments to the unadjusted trail balance:It is estimated that 20% of the balance of the Advertising Expense
How would I go about making the following adjustments to the unadjusted trail balance:It is estimated that 20% of the balance of the Advertising Expense account is for advertising that will appear in various media early in the next quarter, Granite Bay Jet Ski, Inc., has three trucks. The new truck acquired on June 21 will not be depreciated this quarter. An old truck used only for short distance heavy hauling is fully depreciated. The third truck was acquired at a cost of $25,500.00, has a salvage value of $7,500.00, is depreciated on a miles driven basis (units of production depreciation), and has an estimated service life of 120,000 miles. The truck was driven 2,240 miles during the quarter, The $10,000.00 balance in the Long-Term Note Payable account is the balance owing from a $100,000.00, 6% note that requires quarterly payments of $5,000.00 plus accrued interest on the unpaid balance. The $5,000.00 payments, plus accrued interest from the previous quarter, are made the first day of January, April, July, and October of each year, Accrue the quarterly interest on the $10,000.00, 6%, long-term notes payable, The balance sheet (computer aging) method is used to estimate the balance of the Allowance for Doubtful Accounts account for the end of each quarter. The program has analyzed all accounts receivable and calculated the estimated balance of the account to be $2,190.50.
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