Question

6 value: 10.00 points Cactus Company's annual accounting year ends on June 30. Assume it is June 30, and all of the entries except the following adjusting journal entries have been made: a. The company earned service revenue of $3,600 on a special job that was completed June 29 b. On March 31, Cactus paid a six-month premium for property insurance in the amount of $4,800 for c. At June 30, wages of $2,500 were earned by employees but not yet paid. The employees will be paid d. On June 1, Cactus collected two months' revenue of $610. At that date, Cactus debited Cash and Collection will be made during July; no entry has been recorded. coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. on the next payroll date, which is July 15 credited Unearned Revenue for $610. One-half of it has now been earned but not yet recorded Depreciation of $3,100 must be recognized on a service truck purchased on July 1 of the previous year Cash of $6,120 was collected on May 1 for services to be rendered evenly over the next year beginning on May 1. Unearned Revenue was credited when the cash was received. Some of it has now been earned but not yet recorded e. f. g. The company owes interest of $760 on a bank loan taken out on February 1. The interest will be paid when the loan is repaid next year on January 31 h. The income after all adjustments except income taxes was $36,000. The company's federal income tax rate is 30%. Compute and record income tax expense Required Indicate the accounting equation effects (amount and direction) of each adjusting journal entry. Provide an appropriate account name for any revenue and expense effects. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets = Liabilites + Stockholders' Equity C. 9 Ihn.

Answer 1