Determine year-end adjustments and account balances and prepare an income statement (LO4-3, 4-4, 4-5) Below are...

 

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Determine year-end adjustments and account balances and prepare an income statement (LO4-3, 4-4, 4-5) Below are transactions for Hurricane Company during 2024. 1. On October 1, 2024, Hurricane lent $9,000 to another company. The other company signed a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2025. 2. On November 1, 2024, Hurricane paid its landlord $4,500, representing rent for the months of November through January. The payment was recorded in Prepaid Rent for the entire amount on November 1. Costs related to rent for the first 10 months of the year total $15,000. 3. On August 1, 2024, Hurricane collected $13,200 in advance from another company to provide consulting services for one year. The entire amount was recorded in Deferred Revenue. Hurricane generates $160,000 in other Service Revenue during the year. 4. Utilities owed at the end of the year are $400. For the first 11 months of the year, Hurricane has paid $4,000 for utilities. 5. Salaries for the December earned by employees but not paid to them or recorded are $5,000. For the first 11 months of the year, Hurricane has paid $45,000 for salaries. 6. Hurricane began the year with $500 in supplies. During the year, the company purchased $2,500 in supplies. At year-end, supplies costing $600 remain on hand. Required: 1. For each item, determine the accounts to be adjusted on December 31, 2024, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year. 2. Prepare an income statement for the year ended December 31, 2024 based on the items above. Determine year-end adjustments and account balances and prepare an income statement (LO4-3, 4-4, 4-5) Below are transactions for Hurricane Company during 2024. 1. On October 1, 2024, Hurricane lent $9,000 to another company. The other company signed a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2025. 2. On November 1, 2024, Hurricane paid its landlord $4,500, representing rent for the months of November through January. The payment was recorded in Prepaid Rent for the entire amount on November 1. Costs related to rent for the first 10 months of the year total $15,000. 3. On August 1, 2024, Hurricane collected $13,200 in advance from another company to provide consulting services for one year. The entire amount was recorded in Deferred Revenue. Hurricane generates $160,000 in other Service Revenue during the year. 4. Utilities owed at the end of the year are $400. For the first 11 months of the year, Hurricane has paid $4,000 for utilities. 5. Salaries for the December earned by employees but not paid to them or recorded are $5,000. For the first 11 months of the year, Hurricane has paid $45,000 for salaries. 6. Hurricane began the year with $500 in supplies. During the year, the company purchased $2,500 in supplies. At year-end, supplies costing $600 remain on hand. Required: 1. For each item, determine the accounts to be adjusted on December 31, 2024, the amount of the adjustment, and the ending balance. Assume no adjustments were previously made during the year. 2. Prepare an income statement for the year ended December 31, 2024 based on the items above.