Question

H UJUL... U N Take videos all ... SSF Cumshot Page 37. Freaky Lala Sucks.. thot facial' Search Camp Homework Assignment A Saved Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were developed from the company's records and related documents: a. On July 1, 2018, a two-year insurance premium on equipment in the amount of $408 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. b. At the end of 2018, the unadjusted balance in the Supplies account was $1,000. A physical count of supplies on December 31, 2018 indicated supplies costing $220 were still on hand. c On December 31, 2018, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $720. The amount is not yet recorded. It will be paid during January 2019. d. On December 31, 2018, the company completed a contract for an out-of-state company for $7,550 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 1. 2018, the company purchased a new hauling van. Depreciation for July-December 2018, estimated to total $2,350, has not been recorded. f As of December 31, the company owes interest of $420 on a bank loan taken out on October 1, 2018. The interest will be paid when the loan is repaid on September 30, 2019. No interest has been recorded yet. 9. Assume the income after the preceding adjustments but before income taxes was $22,000. The company's 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, 2018. 2. If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which co

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Answer 1

1 Adjustment entries S No Credit Debit $ 102 Remarks Income overstated $ 102 Particulars Insurance expense To Prepaid Insurance (Being insurance expense recognized for the period Jul - Dec 2018 as $408/24months*6 months) b $ 780 Income overstated $ 780 Supply expense To Supplies (Being supply expenses recognozed as $1000 $220) $ 720 Income overstated Repair expense To Accrued expense (Being repair cost accrued) $ 720 $ 7,550 $ 7,550 Income understated Accounts Receivable To Sales (Being revenue recognized on completed project)

е $ 2,350 Income overstated $ 2,350 Depreciation expense To Accumulated Depreciation (Being depreciation recorded on hauling van for the period Jul - Dec 2018) $ 420 Income overstated Interest expense To Accrued Interest (Being interest accrued on the bank loan) $ 420 $ 5,500 Income overstated $ 5,500 Income Tax expense To Provision for Income Tax (Being incone tax expense recorded as $22,000*25%) Income overstated by Income understated by Net income overstated by $ 9,872 $ 7,550 $ 2,322