3 Jordan Company's annual accounting year ends on December 31. It is now December 31, 2018, and all of the 2018 entries have been made except for the following: 10 points 00:55:08 a. The company owes interest of $700 on a bank loan. The interest will be paid when the loan is repaid on September 30, 2019. No interest has been recorded. b. On September 1, 2018, Jordan collected six months' rent of $4,800 on storage space. At that date, Jordan debited Cash and credited Deferred Revenue for $4,800. C. The company earned service revenue of $3,300 on a special job that was completed December 29, 2018. Collection will be made during January 2019. No entry has been recorded. d. On November 1, 2018, Jordan paid a one-year premium for property insurance of $4,200, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. e. At December 31, 2018, wages earned by employees but not yet paid totaled $1,100. The employees will be paid on the next payroll date, January 15, 2019. f. Depreciation of $1,000 must be recognized on a service truck purchased this year. g. The income after all adjustments other than income taxes was $30,000. The company's income tax rate is 30%. Compute and record income tax expense. Required: 1. Give the adjusting journal entry required for each transaction at December 31, 2018. 2. If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Jordan Company's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made. transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Debit Credit 1 a 700 Interest Expense Interest Payable 700 2 b Deferred Revenue 4,800 x Rent Revenue 4,800 X 3 C Accounts Receivable 3,300 Service Revenue 3,300 4 d 4,200 x Insurance Expense Prepaid Insurance 4,200 X 5 e 1,100 Salaries and Wages Expense Salaries and Wages Payable OO 1,100 6 f 1,000 Depreciation Expense Accumulated Depreciation 1,000 7 g 6,020 X Income Tax Expense Income Tax Payable 6,020 X 1. Give the adjusting journal entry required for each transaction at December 31, 2018. 2. If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Jordan Company's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made. X Answer is not complete. Complete this question by entering your answers in the tabs below. Require 1 Required 2 If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Jordan Company's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made. Tip: In transaction (b), Jordan Company has met its obligation for four of the six months, thereby earning 4/6 of the rent collected. Tip: In transaction (d), two months of insurance coverage has now expired. ! Show less : Jordan Company's Net income by Require 1 Required 2