Recording Adjusting Entries and Reporting Balances in Financial Statements 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 $2,900 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) $340,000
Accumulated depreciation (through March 31 of the prior year) 132,000
Estimated annual depreciation for using the equipment 34,000

Required:
a. Using the process illustrated in the chapter, record the adjusting entry for advertisements at March 31 of the current year.
b. Using the process illustrated in the chapter, record the adjusting entry for the use of construction equipment during the current year.
c. What amount should be reported on the current year's income statement for Advertising Expense? For Depreciation Expense?
d. What amount should be reported on the current year's balance sheet for Prepaid Advertising? For Construction Equipment (at net book value)?

Organizational portfolio plan, the final phase of the strategic planning process, involves? a. identifying strategic business units (sbus) and establishing methods to determine how resources should be allocated among the various sbus. b. designing marketing mix strategies c. setting organizational objectives d. creating organizational strategies

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

On january 2, 2018, bering co. disposes of a machine costing $34,100 with accumulated depreciation of $18,369. prepare the entries to record the disposal under each of the following separate assumptions. exercise 8-24a part 2 2. the machine is traded in for a newer machine having a $50,600 cash price. a $16,238 trade-in allowance is received, and the balance is paid in cash. assume the asset exchange has commercial substance.