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Gauge Construction Company is making adjusting entries for the year ended March 31 of the...

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Accounting

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:

  1. The company paid $4,100 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.
  2. 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) $ 570,000
Accumulated depreciation (through March 31 of the prior year) 150,400
Estimated annual depreciation for using the equipment 43,200

Required:

1. Record the adjusting entry for advertisements at March 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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