Brokeback Towing Company is at the end of its accounting year, December 31, 2017. The following data that must be considered were developed from the company's records and related documents: a. On July 1, 2017, a three-year Insurance premium on equipment in the amount of $780 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. b. At the end of 2017, the unadjusted balance in the Office Supplies account was $1,150. A physical count of supplies on December 31, 2017 indicated supplies costing $390 were still on hand. c On December 31, 2017, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $860. The amount is not yet recorded. It will be paid during January 2018. d. In December, the 2017 property tax bill for $1,840 was received from the city. The taxes, which have not been recorded, will be paid on February 15, 2018 e On December 31, 2017, the company completed the work on a contract for an out-of-province company for $9,400 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction. f. On July 1, 20 1, 2017, the company purchased a new hauling van. Depreciation for July to December 2017, estimated to total $2,900, has not been recorded. g. As of December 31, the company owes Interest of $575 on a bank loan taken out on October 1, 2017. The Interest will be paid on September 30, 2018, when the loan is repald. No interest has been recorded yet. h. The Income before any of the adjustments or income taxes was $33,000. The company's federal income tax rate is 30 percent. Compute adjusted Income based on all of the preceding Information, and then determine and record income tax expense. Required: 1. Give the adjusting Journal entry required for each transaction at December 31, 2017. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) Required: 1. Give the adjusting journal entry required for each transaction at December 31, 2017. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list 1 On July 1, 2017, a three-year insurance premium on equipment in the amount of $780 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. amount 2 At the end of 2017, the unadjusted balance in the Office Supplies account was $1,150. A physical count of supplies on December 31, 2017, indicated supplies costing $390 were still on hand. Credit 3 On December 31, 2017, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $860. The amount is not yet recorded. It will be paid during January 2018. 4 In December, the 2017 property tax bill for $1,840 was Note : | = journal entry has been entered Record entry Clear entry View general journal 2. Without the adjustments made in requirement 1, by what amount would Brokeback's net income have been understated or overstated? O $8,266 Overstated O $8,266 Understated Required: 1. Give the adjusting journal entry required for each transaction at December 31, 2017. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list 5 > On December 31, 2017, the company completed the work on a contract for an out-of-province company for $9,400 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction. e amount 6 On July 1, 2017, the company purchased a new hauling van. Depreciation for July to December 2017, estimated to total $2,900, has not been recorded. Credit 7 As of December 31, the company owes interest of $575 on a bank loan taken out on October 1, 2017. The interest will be paid on September 30, 2018, when the loan is repaid. No interest has been recorded yet. 8 The income before any of the adjustments or income taves was $23. non The comnany's federal income tax Note : = journal entry has been entered Record entry Clear entry View general journal 2. Without the adjustments made in requirement 1, by what amount would Brokeback's net income have been understated or overstated? O $8,266 Overstated O $8,266 Understated Required: 1. Give the adjusting journal entry required for each transaction at December 31, 2017. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list for this transaction. > amount 6 On July 1, 2017, the company purchased a new hauling van. Depreciation for July to December 2017, estimated to total $2,900, has not been recorded. 7 As of December 31, the company owes interest of $575 on a bank loan taken out on October 1, 2017. The interest will be paid on September 30, 2018, when the loan is repaid. No interest has been recorded yet. Credit 8 The income before any of the adjustments or income taxes was $33,000. The company's federal income tax rate is 30 percent. Compute adjusted income based on all of the preceding information, and then determine and record income tax expense. Note : = journal entry has been entered Record entry Clear entry View general journal 2. Without the adjustments made in requirement 1, by what amount would Brokeback's net income have been understated or overstated? O $8,266 Overstated O $8.266 Understated