Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were developed from the company's records and related documents: a. On July 1, 2018, a two-year Insurance premium on equipment in the amount of $900 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. b. At the end of 2018, the unadjusted balance in the Supplies account was $1,300. A physical count of supplies on December 31, 2018, indicated supplies costing $450 were still on hand. c. On December 31, 2018, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $950. The amount is not yet recorded. It will be paid during January 2019. d. On December 31, 2018, the company completed a contract for an out-of-state company for $8,100 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction e. On July 1, 2018, the company purchased a new hauling van. Depreciation for July-December 2018, estimated to total $2.900, has not been recorded. 1. As of December 31, the company owes Interest of $650 on a bank loan taken out on October 1, 2018. The interest will be paid when the loan Is repaid on September 30, 2019. No interest has been recorded yel 9. Assume the Income after the preceding adjustments but before income taxes was $45,000. The company's federal income tax rate is 15%. Compute and record income tax expense Required: Indicate the accounting equation effects (amount and direction) of each adjusting journal entry. Provide an appropriate account name for any revenue and expense effects. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets Llabilities Stockholders Equity a. b C d. e 1. 9 Fes Company is making adjusting Joumal entries for the year ended December 31, 2018. In developing information for the adjusting journal entries, you learned the following: a. A two-year insurance premium of $6,500 was paid on January 1 2018, for coverage beginning on that date. As of December 31, 2018, the unadjusted balances were $6,500 for Prepaid Insurance and $0 for Insurance Expense. b. At December 31, 2018, you obtained the following data relating to supplies. Unadjusted balance in Supplies on December 31, 2018 Unadjusted balance in Supplies Expense on December 31, 2018 Supplies on hand, counted on December 31, 2018 $11,500 65,000 7,200 Required: 1. Of the $6,500 paid for insurance, what amount should be[reported on the 2018 income statement as Insurance Expense? What amount should be reported on the December 31, 2018, balance sheet as Prepaid Insurance? 2. What amount should be reported on the 2018 income statement as Supplies Expense? What amount should be reported on the December 31, 2018, balance sheet as Supplies? 3. Indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies. Of the $6,500 paid for Insurance, what amount should be reported on the 2018 Income statement as Insurance Expense? What amount should be reported on the December 31, 2018, balance sheet as Prepaid Insurance? Insurance Expense Prepaid Insurance What amount should be reported on the 2018 Income statement as Supplies Expense? What amount should be reported on the December 31, 2018, balance sheet as Supplies? Supplies Expense Supplies Indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies. Enter any decreases to Assets, Labilities, or Stockholders' Equity with a minus Liabilities Transaction Assets a [Prepaid Insurance Supplies Stockholders' Equity insurance Exponso Supplies Expense