The May 31, 2018 unadjusted trial balance for Rosalina Besario Surveyors is presented as follows: Rosalina Besario Surveyors Unadjusted Trial Balance May 31, 2018 Cash 210,000 Accounts Receivable 930,000 Prepaid Advertising 360,000 Engineering Supplies 270,000 Survey Equipment 1,890,000 Accumulated Depreciation-Survey Equipment 640,000 Accounts Payable 190,000 Unearned Survey Revenues 120,000 Notes Payable 500,000 Besario, Capital 1,120,000 Besario, Withdrawals 700,000 Survey Revenues 6,510,000 Salaries Expense 3,270,000 Rent Expense 960,000 Insurance Expense 250,000 Utilities Expense 160,000 Miscellaneous Expense 80,000 Totals 9,080,000 9,080,000 The following information pertaining to the year-end adjustments is available: a. The P360,000 prepaid advertising represents expenditure made on Nov. 1, 2017 for monthly advertising over the next 18 months. b. A count of the engineering supplies at May 31, 2018 amounted to P90,000. c. Depreciation on the surveying equipment amounted to P160,000. d. One-third of the unearned survey revenues has been earned. e. Salaries in the amount of P140,000 have accrued. f. Interest of P60,000 on the notes payable has accrued. Required: a. Prepare the adjustments then prepare a complete worksheet. b. Prepare an income statement, a statement of changes in equity, and a balance sheet.
The May 31, 2018 unadjusted
Rosalina Besario Surveyors
Unadjusted Trial Balance
May 31, 2018
Cash 210,000
Prepaid Advertising 360,000
Engineering Supplies 270,000
Survey Equipment 1,890,000
Accounts Payable 190,000
Unearned Survey Revenues 120,000
Notes Payable 500,000
Besario, Capital 1,120,000
Besario, Withdrawals 700,000
Survey Revenues 6,510,000
Salaries Expense 3,270,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous Expense 80,000
Totals 9,080,000 9,080,000
The following information pertaining to the year-end adjustments is available:
a. The P360,000 prepaid advertising represents expenditure made on Nov. 1, 2017 for monthly
advertising over the next 18 months.
b. A count of the engineering supplies at May 31, 2018 amounted to P90,000.
c. Depreciation on the surveying equipment amounted to P160,000.
d. One-third of the unearned survey revenues has been earned.
e. Salaries in the amount of P140,000 have accrued.
f. Interest of P60,000 on the notes payable has accrued.
Required:
a. Prepare the adjustments then prepare a complete worksheet.
b. Prepare an income statement, a statement of changes in equity, and a balance sheet.
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