Print B. Henderson Fishing Charters has collected the following data for the December 31 adjusting entries: (Click the icon to view the data.) Read the requirements Requirement 1. Joumalize the adjusting entries needed on December 31 for Henderson Fishing Charters. Assume Henderson records adjusting entries only at the end of the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. The company received its electric bill on December 20 for $300 but will not pay it until January 5. (Use the Utilities Payable account.) Date Accounts and Explanation Debit Credit (a) Dec. 31 (2) (3) (5) b. Henderson purchased a three-month boat insurance policy on November 1 for $900. Henderson recorded a debit to Prepaid Insurance. Date Accounts and Explanation Debit Credit (b) Dec 31 (6) c. As of December 31, Henderson had earned $2,500 of charter revenue that has not been recorded or received. Date Accounts and Explanation Debit Credit (c) Dec. 31 d. Henderson's fishing boat was purchased on January 1 at a cost of $71,000. Henderson expects to use the boat for ten years and that it will have a residual value of $6,000. Determine annual depreciation assuming the straight-line depreciation method is used. Print Date Accounts and Explanation Debit Credit (d) Dec. 31 (16) (18) (19) (20) e. On October 1, Henderson received $7,500 prepayment for a deep-sea fishing charter to take place in December. As of December 31, Henderson has completed the charter. (When the cash was received, assume that a liability account was credited) Date Accounts and Explanation Debit Credit (e) Dec. 31 (21) (22) (23) (24) (25) Requirement 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. Begin by completing the table for adjustment a and then transactions b through e. Adjusling Entry Specific Category of Accounts on the Balance Sheet (26) (30) Specific Category of Accounts on the Income Statement (28) Over/ Understated (29) Over Understated (27) (31) (33) (37) (39) A L (34) (35) (36) (38) D (40) (41) (43) (45) (48) (49) (52) (53) Print 11: More Info a. The company received its electric bill on December 20 for $300 but will not pay it until January 5. (Use the Utilities Payable account.) b. Henderson purchased a three-month boat insurance policy on November 1 for $900. Henderson recorded a debit to Prepaid Insurance. c. As of December 31, Henderson had earned $2,500 of charter revenue that has not been recorded or received d. Henderson's fishing boat was purchased on January 1 at a cost of $71,000. Henderson expects to use the boat for ten years and that it will have a residual value of $6,000. Determine annual depreciation assuming the straight-line depreciation method is used. c. On October 1, Henderson received $7,500 prepayment for a deep sea fishing charter to take place in December. As of December 31, Henderson has completed the charter. 12: Requirements 1. Joumalize 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. (1) O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense Salaries Payable O Service Revenue Uneared Revenue Utilities Expense Utilities Payable (2) O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expanse-Boat Insurance Expense O Prepald Insurance O Salaries Expense Salaries Payable O Service Revenue Uneamed Revenue Utilities Expense Utilities Payable 0000 0000 (3) O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense Salaries Payable O Service Revenue Uneamed Revenue Utilities Expense Utilities Payable Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense Salaries Payable O Service Revenue Uneared Revenue Utilities Expense Utilities Payable (5) O O Cash paid for utilities in advance. To record payment of accrued expense. To accrue utilities expense. (6) O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats Cash O Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense Salaries Payable O Service Revenue Unearned Revenue Utilities Expense Utilities Payable Print Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats Cash Depreciation Expanse-Boat Insurance Expense O Prepaid Insurance Salaries Expense Salaries Payable O Service Revenue Uneamed Revenue Utilities Expense Utilities Payable (8) O Accounts Payable Accounts Receivable O Accumulated Depreciation-Boat 0000 O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense Salaries Payable O Service Revenue Uneared Revenue Utilities Expense Utilities Payable (10) (9) O Accounts Payable Accounts Receivable O Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense Salaries Payable O Service Revenue Uneamed Revenue Utilities Expense Utilities Payable O Paid cash expenses. Paid insurance in advance. To record insurance expense. (11) Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense O Salaries Payable O Service Revenue Unearned Revenue Utilities Expense Utilities Payable (12) O Accounts Payable O Accounts Receivable Accumulated Depreciation-Boat Boats O Cash O Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense O Salaries Payable O Service Revenue Unearned Revenue Utilities Expense Utilities Payable (13) O Accounts Payable O Accounts Receivable O Accumulated Depreciation-Boat O Boats O Cash O Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense Salaries Payable O Service Revenue Unearned Revenue O Utilities Expense Utilities Payable (14) O Accounts Payable O Accounts Receivable O Accumulated Depreciation-Boat O Boats O Prepaid Insurance O Unearned Revenue O Cash O Salaries Expense Utilities Expense O Depreciation Expense-Boat O Salarles Payable Utilities Payable Insurance Expense Service Revenue (15) O O Cash collected for future services. To accrue service revenue. To record service revenue that was collected in advance. (16) O O Accounts Payable O Accounts Receivable Accumulated Depreciation-Boat O Boats O Prepaid Insurance O Cash Salaries Expense Depreciation Expense-Boat O Salarles Payable Insurance Expense Service Revenue Unearned Revenue Utilities Expense Utilities Payable Print (17) O O Accounts Payable O Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash O Depreciation Expense-Boat Insurance Expanse O Prepaid Insurance O Salaries Expense O Salaries Payable O Service Revenue Unearned Revenue Utilities Expense O Utilities Payable (18) O O Accounts Payable O Accounts Receivable O Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat OInsurance Expensa O Prepaid Insurance O Unearned Revenue O Salarles Expense Utilities Expense Salaries Payable Utilities Payable O Service Revenue (20) O (19) O O Accounts Payable O Accounts Receivable Accumulated Depreciation-Boat O Boats Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense O Salaries Payable Service Revenue Unearned Revenue O Utilities Expense Utilities Payable To record depreciation on boat. To record disposal of boat. To record purchase of boat. (21) O O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense Salaries Payable Service Revenue O Unearned Revenue Utilities Expense Utilities Payable (22) O Accounts Payable O Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Unearned Revenue O Salaries Expense Utilities Expense Salaries Payable Utilities Payable O Service Revenue (23) O O Accounts Payable Accounts Receivable O Accumulated Depreciation-Boat O Boats Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance O Salaries Expense Salaries Payable O Service Revenue Unearned Revenue Utilities Expense Utilities Payable (25) O (26) O (24) O O Accounts Payable Accounts Receivable Accumulated Depreciation-Boat O Boats O Cash Depreciation Expense-Boat Insurance Expense O Prepaid Insurance Salaries Expense O Salaries Payable O Service Revenue Unearned Revenue Utilities Expense Utilities Payable Cash collected for future services. To accrue service revenue. To record service revenue that was collected in advance. Asset Equity Liability (27) O (30) (34) O Overstated Understated (28) O O Expense O Revenue (29) O O Overstated Understated O Asset Equity Llability Overstated Understated Oue (32) O O Asset O Equity Liability (33) O O Overstated O Understated Expense Revenue (35) O Overstated O Understated (27) O (31) O (32) O Overstated Understated (28) O Expense O Revenue (29) O O Overstated Understated (30) O O Asset Equity Liability Overstated Understated Asset Equity Liability (33) O Overstated O Understated (34) O O Expense O Revenue (35) O Overstated O Understated (36) O (37) O (38) O (39) O (40) O (41) O (42) O Asset Equity Liability Overstated Understated Asset Equity Liability Overstated Understated (44) O O Asset Expense Revenue Overstated Understated (43) O O Overstated Understated Asset Equity Liability Equity Liability (49) O (50) O (51) O (45) O Overstated O Understated (46) O Expense O Revenue (47) O O Overstated O Understated (48) O Asset O Equity Liability Overstated Understated Asset Equity Liability Overstated Understated (52) O O Expense Revenue (53) O Overstated O Understated (54) O (55) O Asset Equity Liability Overstated Understated