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Question: brokeback towing company is at the end of its accounting...

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Brokeback Towing Company is at the end of its accounting year, December 31, 2015. The following data that must be considered were developed from the companys records and related documents: a. On July 1, 2015, a two-year insurance premium on equipment in the amount of $624 was paid and debited b. At the end of 2015, the unadjusted balance in the Supplies account was $1.000. A physical count of c. On December 31, 2015, YYs Garage completed repairs on one of Brokebacks trucks at a cost of $810 d. On December 31,. 2015, the company completed a contract for an out-of-state company for $8.000 in full to Prepaid Insurance on that date. Coverage began on July 1 supplies on December 31, 2015, indicated supplies costing $310 were still on hand The amount is not yet recorded. It will be paid during January 2016. payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction. e. On July f. As of December 31, the company owes interest of $510 on a bank loan taken out on October 1, 2015. The g. Assume the income after the preceding adjustments but before income taxes was $31.000. The 1, 2015, the company purchased a new hauling van. Depreciation for July-December 2015. estimated to total $2.800, has not been recorded. interest will be paid when the loan is repaid on September 30, 2016. No interest has been recorded yet companys federal income tax rate is 25%. Compute and record income tax expense. Required: 1. Give the adjusting journal entry required for each item at December 31. 2015. (lf no entry is required for a transactionlevent, select No Journal Entry Required in the first account field) View transaction list Journal entry worksheet 2 4. 7 Record the entry for insurance expense if, on July , 2015 a two-year insurance premium on equipment in the amount of s624 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1 Note: Enter debits befare crecits Transaction General Journal Debit Creclit
1. Give the adjusting journal entry required for each item at December 31, 2015. (If no entry is required for a transaction/event, select No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the entry for insurance expense if, on July 1, 2015, a two-year insurance premium on equipment in the amount of $624 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. Note: Enter debits before credits. ransaction General Journal Debit Credit Record entry Clear entry View general journal 2. if adjustments were not made each perioo, the fnancial resuits could be materialy miastated. Desermine the amount by which Brokebacks net income would have been undarstateg, or qverstated, hac the adjustments in requirement 1 not been made Brokebacks ne: income
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