1. Prepare Adjusting Journal Entries on the general journal using the following information (10 points) On 2/1/20, the company purchased a large fishing boat for $38,000 of which had a down payment of $7,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable's principle has a 6% annual interest rate due every 6-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $1,000. Straight-line depreciation method is used. a. Make sure the interest is up to date. b. Make sure the depreciation is recorded. c. Liability insurance was purchased on 5/1/20. The 12 month policy cost $8,000 and was paid in full. Record any expired insurance. d. Shark Bait purchased $18,000 of office supplies and lures from Huge Minnows Company on 4/1/20 on account. Also, on 11/5/20, Shark Bait received $1,000 cash for the sale of some unused lures that were bought on 4/1/20 for $2,400. On 12/31/20, due to the use of office supplies, the Office Supplies and lures only added up to $1,500. e. On 6/1/20, Shark Bait received $14,000 cash for a tour that would take place on 2/4/21. On 12/30/20, 30% of the services were provided early from the customers that paid cash on 6/1/20. ACC 201 Credit General Journal Date Account Titles and Explanation 1/1/20 Cash Capital Stock Ref. 1 Debit 160,000 1 160,000 38,000 2/1/20 Equipment - Boat Cash Notes Payable - First Hawaiian Bank NNN 7,000 31,000 8/1/20 Interest Expense Cash NN 930 930 P** T =31000* .06 *6/12 mo 18,000 4/1/20 Office Supplies/Lures Accounts Payable 3 3 18,000 4 42,000 4/10/20 Cash Sales Revenue 4 42,000 5 8,000 5/1/20 Prepaid Insurance Cash 5 8,000 6 14,000 6/1/20 Cash Unearned Revenue 6 14,000 9/1/20 Accounts Payable Cash 7 7 9,000 9,000 11/5/20 Cash Loss on Sale of Supplies/Lures Office Supplies/Lures 00 00 00 1,000 1,400 2,400 9 9,000 11/30/20 Accounts Receivable Sales Revenue 9 9,000 12/31/20 Salaries Expense Utilities Expense Boat Gas Expense Cash 10 10 10 10 11,000 2,000 1,000 14,000