a. The company received its electric bill on December 20 for $250 but will not pay it until January 5. (Use the Utilities Payable account) b. Mitchell purchased a three-month boat insurance policy on November 1 for $2,100. Mitchell recorded a debit to Prepaid Insurance. c. As of December 31, Mitchell had earned $1,500 of charter revenue that has not been recorded or received d. Mitchell's fishing boat was purchased on January 1 at a cost of $68,000 Mitchell expects to use the boat for five years and that it will have a residual value of $3,000. Determine annual depreciation assuming the straight-line depreciation method is used. e. On October 1. Mitchell received $5.500 prebavment for a deep-sea fishing Print Done - X i Requirements 1. Journalize the adjusting entries needed on December 31 for Mitchell Fishing Charters. Assume Mitchell records adjusting entries only at the end of the year. 2. If Mitchell had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated. U Print Done a. The company received its electric bill on December 20 for $250 but will not pay it until January 5. (Use the Utilities Payable account) b. Mitchell purchased a three-month boat insurance policy on November 1 for $2,100. Mitchell recorded a debit to Prepaid Insurance. c. As of December 31, Mitchell had earned $1,500 of charter revenue that has not been recorded or received d. Mitchell's fishing boat was purchased on January 1 at a cost of $68,000 Mitchell expects to use the boat for five years and that it will have a residual value of $3,000. Determine annual depreciation assuming the straight-line depreciation method is used. e. On October 1. Mitchell received $5.500 prebavment for a deep-sea fishing Print Done - X i Requirements 1. Journalize the adjusting entries needed on December 31 for Mitchell Fishing Charters. Assume Mitchell records adjusting entries only at the end of the year. 2. If Mitchell had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated. U Print Done