Question 1

Brokeback Towing Company is at the end of its accounting year, which is December 31, 2020. The following data that must be considered were developed from the companys records and related documents:

1. On July 1, 2020, a three-year insurance premium on equipment in the amount of $1,560 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1.
2. At the end of 2020, the unadjusted balance in the Office Supplies account was $1,800. A physical count of supplies on December 31, 2020, indicated supplies costing $780 were still on hand.
3. On December 31, 2020, YYs Garage completed repairs on one of Brokebacks trucks at a cost of $1,120. The amount is not yet recorded. It will be paid during January 2021.
4. In December, the 2020 property tax bill for $2,880 was received from the city. The taxes, which have not been recorded, will be paid on February 15, 2021.
5. On December 31, 2020, the company completed the work on a contract for an out-of-province company for $15,900 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.
6. On July 1, 2020, the company purchased a new hauling van. Depreciation for July to December 2020, estimated to total $3,550, has not been recorded.
7. As of December 31, the company owes interest of $900 on a bank loan taken out on October 1, 2020. The interest will be paid on September 30, 2021, when the loan is repaid. No interest has been recorded yet.
8. The income before any of the adjustments or income taxes was $46,000. The companys federal income tax rate is 30 percent. Compute adjusted income based on all of the preceding information, and then determine and record income tax expense.

Required: Give the adjusting journal entry required for each transaction at December 31, 2020. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question 2

ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Amounts in the list of accounts are rounded to the nearest thousand dollars. Assume the year ended on September 30, 2020.

Accounts Payable$317 Accounts Receivable 223 Accrued Liabilities 386 Accumulated Depreciation 332 Cash 339 Contributed Capital 183 Depreciation Expense 372 General and Administrative Expenses 389 Income Tax Expense 334 Interest Revenue 124 Long-Term Debt 228 Other Current Assets 103 Other Long-Lived Assets 557 Other Operating Expenses 229 Prepaid Expenses 126 Property and Equipment 2,238 Retained Earnings 1,541 Selling Expenses 2,701 Service Revenues 6,689 Short-Term Bank Loan 508 Store Operating Expenses 2,262 Supplies 642 Deferred Revenue 207

Required: Prepare an adjusted trial balance at September 30, 2020. (Enter your answers in thousands.)