Question

Check my work Consider the following transactions for Huskies Insurance Company: 1. Equipment costing $32,400 is purchased at the beginning of the year for cash. Depreciation on the equipment is $5,400 per year. 2. On June 30, the company lends its chief financial officer $34,000; principal and interest at 7% are due in one year. 3. On October 1, the company receives $9,600 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 the first account field. Do not round Intermediate calculations.) View transaction list View journal entry worksheet Credit No 1 Date December 31 General Journal Depreciation Expense Accumulated Depreciation Debit 5,400 2 5.400 December 31 No Traction Recorded December 31 No Transaction Recorded

Question 2and3

Answer 1

Answers

Date	general journal	Debit	Credit
31-Dec	Depreciation expense	$5,400
	Accumulated Depreciation - Equipment		$5,400
	(to adjust 12 month depreciation)
31-Dec	Interest receivable ($34000 x 7% x 6/12)	$1,190
	Interest revenue		$1,190
	(to adjust 6 month interest revenue accrued)
31-Dec	Deferred Revenue ($9600 x 3/12)	$2,400
	Revenue or Service Revenue		$2,400
	(to record earned revenue for 3 months)