Below are transactions for Hurricane Company during $2026.$

$10$ points

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Hint

References

On October $1,2026,$ 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 $30,2027.$

On November $1,2026,$ Hurricane paid its landlord $$4,500,$ representing rent for the months of November through January. The payment was recorded in Prepaid Rent for the entire amount on November $1.$ Costs related to rent for the first $11$ months of the year total $$15,000.$

On August $1,2026,$ Hurricane collected $$13,200$ in advance from another company to provide consulting services for $1$ year. The entire amount was recorded in Deferred Revenue. Hurricane generates $$160,000$ in other Service Revenue during the year.

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.

Salaries for 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.

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:

For each item, determine the accounts to be adjusted on December $31,2026$; the amount of the adjustment; and the ending balance. Assume no adjustments were previously made during the year.

Prepare an income statement for the year ended December $31,2026$ based on the items above.

Note: Amounts to be deducted should be indicated with a minus sign.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare an income statement for the year ended December $31,2026$ based on the items above.

$\backslash$table$[[$Hurricane Company$],[$Income Statement$],[$For the year ended December $31,2026],[$Revenues:$],[$Service Revenue,,$179,113],[$Interest Revenue,,$172],[,,],[$Total revenues,,$179,285],[$Expenses:$],[$Rent Expense,,$19,000],[$Utilities Expense,,$5,870],[$Salaries Expense,,$50,300],[$Supplies Expense,,$3,100],[,,],[$Iotal Expenses,,$78,270],[$Net Income,,$101,015]]$C