Recording Adjusting entries Ch 4 p4-3 Financial Accounting 9th edition

Adustments statemants and Quality of Earnings Financul the Required deferred revenue, deferred expense, accrued l. Indicate whether each transaction relates to a 2. or accrued expense. each transaction at December 31 of the current year Give adjusting entry required for the P4-3 Recording Adjusting Entries (AP4-3) Martin Towing Company is at the end of its accounting year ending December 31. The fol L04-1 that must be considered were developed from the company's records and related documents: a On January l of the current year, the company purchased a new hauling van a a cash cost of$2800 Depreciation estimated at $3.500 for the year has not been recorded for the current year. b During the current year, office supplies amounting to $1,000 were purchased for cash and debied full to Supplies. At the end of last year, the count of supplies remaining on hand was $500.The ima tory of supplies counted on hand at the end of the current year S150. c On December 31 of the current year, Lanie's Garage completed repairs on one of the compani trucks at a cost of $2,600; the amount is not yet recorded by Martin and by agreement be during January of next will year. d. On December 31 of the current year, property taxes on land owned during the current year were e. mated at $1,800 The taxes have not been recorded and will be paid in the next year when billed. On December 3l of the current year, the company completed towing service for an out-of-state entry has been made for this transaction. f on July 1 of the current year, a three-year insurance premium on equipment in the amount of901 was paid and debited in full to Prepaid Insurance on that date. Coverage began on july g. On l of the current year, the company borrowed s13,000 from the local bank on a one-year percent note payable. The principal plus interest is payable at the end of 12 months. 12 income tax of the adj income taxes was company determine rate is 30 percent. (Hint: Compute adjusted pre-tax income based through income tax expense.) on %.4 l. Indicate whether each transaction relates to a deferred revenue deferred expense, acc revend 2. or accrued expense, Prepare the 04-1 Determining entry required for each transaction at December 31 of the current year the Financial Statement Effects of Adjusting to information regarding Zimmerman Entries (AP4-1