Question

consider the following transactions for huskies insurance company

Consider the following transactions for Huskies Insurance Company: 1. Equipment costing $31,200 is purchased at the beginning of the year for cash. Depreciation on the equipment is $5,200 per year 2. On June 30, the company lends its chief financial officer $32,000, principal and interest at 6% are due in one year. 3. On October 1, the company receives $8,800 from a customer for a one-year property insurance policy. Deferred Revenue is credited. Required: For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 3 Equipment costing $31,200 is purchased at the beginning of the year for cash. Depreciation on the equipment is $5,200 per year. Record the adjusting entry for depreciation at its year end of December 31. Note: Enter debits before credits General Journal Debit Credit Date December 31 Record entry Clear entry Www general journal

Answer 1

Credit Date Jan. 31 Adjusted Entries General Journal Depreciation Expense Accumulated Depreciation-Equuipment Debit $5,200 $5,200 Jan 31 $960 Interest Expense Interest Payable ($32,000 x 6% x 6/12) $960 Jan. 31 Deferred Revenue Service revenue ($8.800 x 3/12) $2,200 $2,200 (3/12)_ $2,200