Question

Consider the following transactions for Huskies Insurance Company: Equipment costing $40,800 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,800 per year. On June 30, the company lends its chief financial officer $48,000; principal and interest at 5% are due in one year. On October 1, the company receives $15,200 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.)

Answer 1

Answer:

For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of Decembe

Explanation:

1.- Purchase equipment  

d c

Equipment                                    40800  

Cash                                                40800

 

2.-Lend  

d c

Account receivable employees 48000  

Cash                                              48000

 

3.-Lend Interest  

d c

Account receivable interest               1200  

Other income                                       1200

 

4-Insurance policy  

d c

Cash                                           15200  

Deferred revenue                             15200

 

5.-Insurance policy  

d c

Deferred revenue                              3800  

Revenue                                              3800