entries and identifying the impact on financial statements arters has collected the following data for the December31 adjusting entries The company received its electric bill on December 20 for until January 5. (Use the Utilities Payable account $150 but ill not pay it b. Henderson purchased a nine-month boat insurance policy on November I for c. As of December 31, Henderson had earned $4,000 of charter revenue that has not d. Henderson's fishing boat was purchased on January 1 at a cost of $80,500. $8.100. Henderson recorded a debit to Prepaid Insurance. been recorded or received. Henderson expects to use the boat for five years and that it will have a residual value of $5,500. Determine annual depreciation assuming the straight-line depreciation method is used. c. On October 1, Henderson received $5,000 prepayment for a deep-sea fishing charter to take place in December. As of December 31, Henderson has completed the charter Requirements 1. Journalize the adjusting entries needed on December 31 for Henderson Fishing Charters. Assume Henderson records adjusting entries only at the end of the year 2. If Henderson had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated. Use the following table as a guide. Specific Category of Specific Category of Accounts on theOver/ Income Statement Adjusing Accounts on the Over / Understated Balance Sheet Understateo