Brokeback Towing Company is at the end of its accounting year, December 31, 2021. The following data that must be considered were developed from the companys records and related documents:

1. On July 1, 2021, a two-year insurance premium on equipment in the amount of $840 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1.
2. At the end of 2021, the unadjusted balance in the Supplies account was $1,000. A physical count of supplies on December 31, 2021, indicated supplies costing $400 were still on hand.
3. On December 31, 2021, YYs Garage completed repairs on one of Brokebacks trucks at a cost of $900. The amount is not yet recorded. It will be paid during January 2022.
4. On December 31, 2021, the company completed a contract for an out-of-state company for $8,450 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.
5. On July 1, 2021, the company purchased a new hauling van. Depreciation for JulyDecember 2021, estimated to total $3,250, has not been recorded.
6. As of December 31, the company owes interest of $600 on a bank loan taken out on October 1, 2021. The interest will be paid when the loan is repaid on September 30, 2022. No interest has been recorded yet.
7. Assume the income after the preceding adjustments but before income taxes was $40,000. The companys federal income tax rate is 20%. Compute and record income tax expense.

S DOW 1 Referenc Mc Required: 1. Give the adjusting journal entry required for each item at December 31, 2021. 2. If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Brokeback's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made Complete this question by entering your answers in the tabs below. Required 1 Required 2 Give the adjusting journal entry required for each item at December 31, 2021. (f no entry is required for a transaction/event, select " Journal Entry Required in the first account field.) View transactions Journal entry worksheet 1 2 7 Record the entry for insurance expense if, on July 1, 2021, a two-year insurance premium on equipment in the amount of $840 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. Note: Enter debits before cred Transaction General Journal Debit Credit Prev 1 of 2 Next > Check my work 1 aces View transaction list Journal entry worksheet 1 2 3 4 5 6 Record the entry for supplies expense if, at the end of 2021, the unadjusted balance in the Supplies account was $1,000. A physical count of supplies on December 31, 2021, indicated supplies costing $400 were still on hand. Note: Enter debits before credits. Debit General Journal Credit Transaction Clear entry View general journal Record entry + View transaction list Journal entry worksheet Record the entry for $600 interest owed by the company as of December 31, on a bank loan taken out on October 1, 2021. The interest will be paid when the loan is repaid on September 30, 2022. No interest has been recorded yet. Note: Enter debits before credita Debit General Journal Credit Transaction View general journal Clear entry Record entry ca Give the adjusting journal entry required for each item at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet its