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.)

Question

Liberty Stark

Business

16 March, 10:10

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.)

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Answers (1)

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Iris Cunningham · Answer 1

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