Consider the following items for Huskies Insurance Company: 1. Income taxes for the year total $50,000...

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Consider the following items for Huskies Insurance Company: 1. Income taxes for the year total $50,000 but won't be paid until next April 15. 2. On June 30, the company lent its chief financial officer $58,000; principal and interest at 7% are due in one year. 3. On October 1, the company received $14,800 from a customer for a one-year property insurance policy. Deferred Revenue was recorded on October 1. Insurance services provided to other customers during the year totaled $104,000. Required: For each item, determine the accounts to be adjusted on December 31, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. 1. Answer is complete but not entirely correct. Account Income Tax Payable Income Tax Expense Balance before adjustment $ 0 $ 0 December 31 Adjustment 50,000 50,000 December 31 Ending $ 50,000 $ 50,000 balance 2. Interest Receivable Interest Revenue Balance before adjustment $ 0 $ 0 December 31 Adjustment (2,030) 2,030 December 31 Ending $ balance (2,030) $ 2,030 3. Deferred Revenue Service Revenue Balance before adjustment $ 14,800 $ 104,000 December 31 Adjustment (3,700) 3,700 December 31 Ending $ 11,100 $ 107,700 balance Consider the following items for Huskies Insurance Company: 1. Income taxes for the year total $50,000 but won't be paid until next April 15. 2. On June 30, the company lent its chief financial officer $58,000; principal and interest at 7% are due in one year. 3. On October 1, the company received $14,800 from a customer for a one-year property insurance policy. Deferred Revenue was recorded on October 1. Insurance services provided to other customers during the year totaled $104,000. Required: For each item, determine the accounts to be adjusted on December 31, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year. Note: Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. 1. Answer is complete but not entirely correct. Account Income Tax Payable Income Tax Expense Balance before adjustment $ 0 $ 0 December 31 Adjustment 50,000 50,000 December 31 Ending $ 50,000 $ 50,000 balance 2. Interest Receivable Interest Revenue Balance before adjustment $ 0 $ 0 December 31 Adjustment (2,030) 2,030 December 31 Ending $ balance (2,030) $ 2,030 3. Deferred Revenue Service Revenue Balance before adjustment $ 14,800 $ 104,000 December 31 Adjustment (3,700) 3,700 December 31 Ending $ 11,100 $ 107,700 balance

Answer rating: 100% (QA)

1 Income taxes for the year total 50000 but wont be paid until next April 15 Adjustment Debit Income ... View the full answer