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Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were Ch developed from
Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were Ch 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 $600 was paid and debited in full to Prepaid b At the end of 2018, the unadjusted balance in the Supplies acc Insurance on that date. Coverage began on July 1 indicated supplies costing $300 were still on hand recorded. It will be paid during January 2019. 30 days. No cash has been collected and no journal entry has been made for this transaction not been recorded the loan is repaid on September 30, 2019. No interest has been recorded yet is 30%. Compute and record income tax expense. ount was $1,000. A physical count of supplies on December 31 2018 Garage completed repairs on one of Brokeback's trucks at a cost of $800. The amount is not yet s d. On December 31, 2018, the company completed a contract for a n out-of-state company for $7.950 payable by the customer within e. On July 1, 2018, the company purchased a new hauling van, Depreciation for July-December 2018, estimated to total $2750, has f As of December 31, the company owes interest of $500 on a bank loan taken out on October 1, 2018. The interest will be paid when g Assume the income after the preceding adjustments but before income taxes was $30.000. The company's federal income tax rate 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 signj AssetsLiabilities 600
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