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PA4-2 Analyzing and Recording Adjusting Journal Entries LO 4-1, LO 4-2] Brokeback Towing Company is at the end of its accounting y must be considered were developed from the company's records and related documents ear, December 31, 2015. The following data that a. On July 1, 2015, a two-year insurance premium on equipment in the amount of $600 was paid and debited b. At the end of 2015, the unadjusted balance in the Supplies account was $1,000. A physical count of c. On December 31, 2015, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $800 d. On December 31, 2015, the company completed a contract for an out-of-state company for $7,950 in full to Prepaid Insurance on that date. Coverage began on July 1 supplies on December 31, 2015, indicated supplies costing $300 were still on hand The amount is not yet recorded. It will be paid during January 2016 payable by the customer within 30 days. No cash has been collected and no journal entry has been made e. On July 1, 2015, the company purchased a new hauling van. Depreciation for July-December 2015 f. As of December 31, the company owes interest of $500 on a bank loan taken out on October 1, 2015. The g. Assume the income after the preceding adjustments but before income taxes was $30,000. The for this transaction estimated to total 2,750, has not been recorded interest will be paid when the loan is repaid on September 30, 2016. No interest has been recorded yet. company's federal income tax rate is 30%. Compute and record income tax expense equired 1. Give the adjusting journal entry required for each item at December 31, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 4 6 Record the entry for insurance expense if, on July 1, 2015, a two-year insurance premium on equipment in the amount of $600 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1 Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal