Lucerna Bacalso Surveyors

Trial Balance
May 31, 2013
Account Title Debit Credit
Cash 210000
Accounts Receivable 930000
Prepaid Advertising 360000
Engineering Supplies 270000
Survey Equipment 1890000
Accum. Depreciation-Survey Equipment 640000
Accounts Payable 190000
Unearned Survey Revenues 120000
Notes Payable 500000
Bacalso, Capital 1120000
Bacalso, Withdrawals 700000
Survey Revenues 6510000
Salaries Expense 3270000
Rent Expense 960000
Insurance Expense 250000
Utilities Expense 160000
Miscellaneous Expense 80000

Total 9080000 9080000

The following information pertaining to the year-end adjustments is available:

The P360,000 prepaid advertising represents expenditure made on Nov. 1, 2012 for monthly advertising over the next 18 months.
A count of the engineering supplies at May 31, 2013 amounted to P90,000.
Depreciation on the surveying equipment amounted to P160,000.
One-third of the unearned survey revenues has been earned at year-end.
At year-end, salaries in the amount of P140,000 have accrued.
Interest of P60,000 on the notes payable has accrued at year-end.
Required: Prepare the adjustments and financial statements.
ng over the next 18 months.
Adjustment Enntries
No Account Title & Explanation Debit Credit
1 Advertising Expenses 140000
Prepaid Advertising 140000

2 Supplies Expense 180000

Engineering Supplies 180000

3 Depreciation Expenses 160000

Accum. Depreciation-Survey Equipment 160000

4 Unearned Survey Revenues 40000

Survey Revenues 40000

5 Salaries Expense 140000

Salary Payable 140000

6 Interest Expenses 60000

Interest Payable 60000
 Lucerna Bacalso Surveyors
Trial Balance Adjustment
May 31, 2013
Account Title Debit Credit Debit Credit
Cash 210000
Accounts Receivable 930000
Prepaid Advertising 360000 1 140000
Engineering Supplies 270000 2 180000
Survey Equipment 1890000
Accum. Depreciation-Survey Equipment 640000 160000
Accounts Payable 190000
Unearned Survey Revenues 120000 4 40000
Salary Payable 5 140000
Interest Payable 6 60000
Notes Payable 500000
Bacalso, Capital 1120000
Bacalso, Withdrawals 700000
Survey Revenues 6510000 4 40000
Salaries Expense 3270000 5 140000
Rent Expense 960000
Insurance Expense 250000
Utilities Expense 160000
Advertising Expenses 1 140000
Supplies Expense 2 180000
Depreciation Expenses 3 160000
Interest Expenses 6 60000
Miscellaneous Expense 80000

Total 9080000 9080000 720000 720000

Lucerna Bacalso Surveyors

Adjusted Trial Balance
May 31, 2013
Account Title
Cash 210000
Accounts Receivable 930000
Prepaid Advertising 220000
Engineering Supplies 90000
Survey Equipment 1890000
Accum. Depreciation-Survey Equipment 800000
Accounts Payable 190000
Unearned Survey Revenues 80000
Salary Payable 140000
Interest Payable 60000
Notes Payable 500000
Bacalso, Capital 1120000
Bacalso, Withdrawals 700000
Survey Revenues 6550000
Salaries Expense 3410000
Rent Expense 960000
Insurance Expense 250000
Utilities Expense 160000
Advertising Expenses 140000
Supplies Expense 180000
Depreciation Expenses 160000
Interest Expenses 60000
Miscellaneous Expense 80000

Total 9440000 9440000

Adjusted Trial Balance

Debit Credit
210000
930000
220000
90000
1890000
800000
190000
80000
140000
60000
500000
1120000
700000
6550000
3410000
960000
250000
160000
140000
180000
160000
60000
80000

9440000 9440000
 Lucerna Bacalso Surveyors
Income Statement
For the Year Ended May 31, 2013
Amount (in Dollar)
Revenue
Survey Revenues
Total Revenue
Expenses
Salaries Expense 3,410,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Advertising Expenses 140,000
Supplies Expense 180,000
Depreciation Expenses 160,000
Interest Expenses 60,000
Miscellaneous Expense 80,000
Total Expenses
Net income
mount (in Dollar)

6,550,000
6,550,000

5,400,000
1,150,000
 Lucerna Bacalso Surveyors
Balance Sheet
as on May 31, 2013

Assets
Current Assets
Cash 210,000
Accounts Receivable 930,000
Prepaid Advertising 220,000
Engineering Supplies 90,000
Total Current Assets 1,450,000

Property, Plant, and Equipment

Survey Equipment 1,890,000
Accum. Depreciation-Survey Equipment 800,000
Total PPE 1,090,000

Total Assets 2,540,000

Lucerna Bacalso Surveyors
Balance Sheet
as on May 31, 2013

Liabilities
Current Liabilities
Accounts Payable 190,000
Unearned Survey Revenues 80,000
Salary Payable 140,000
Interest Payable 60,000 470,000

Long Term Liabilities

Notes Payable 500,000 500,000
Total Liabilities 970,000

Equity
Bacalso, Capital 1,570,000
Total Equity 1,570,000

Total Liabilities & Equity 2,540,000