Required information P4-2 (Algo) Recording Adjusting Entries LO4-1 [The following information applies to the questions displayed below] All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31. a. On September 1 of the current year, Zimmerman collected six months' rent of $8,760 on storage space. At that date. Zimmerman debited Cash and credited Unearned Rent Revenue for $8,760. b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 14 percent note for that amount. The principal and interest are payable on the maturity date. c. Depreciation of $1,700 must be recognized on a service truck purchased in July of the current year at a cost of $20,000. d. Cash of $4,200 was collected on November of the current year for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was recelved. e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $8,400, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. 1. The company earned service revenue of $4,800 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. 9. At December 31 of the current year, wages earned by employees totaled $13,400. The employees will be paid on the next payroll date in January of the next year. h. On December 31 of the current year, the company estimated it owed $430 for this year's property taxes on land. The tax will be paid when the bill is recelved in January of next year. P4-2 Part 2 2. Prepare the adjusting entry required for each transaction at December 31 of the current year. Note: if no entry is required for a transaction/event, select "No journal entry required" in the first account field. 2. Prepare the adjusting entry required for each transaction at December 31 of the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 2345678 On September 1 of the current year, Zimmerman collected six months' rent of $8,760 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,760. Note: Enter debits before credits. Journal entry worksheet 2345678 On January 1 of the current year, the company purchased a new hauling van at a cash cost of $23,800. Depreciation estimated at $3,100 for the year has not been recorded for the current year. Note: Enter debits before credits. P4-3 (Algo) Recording Adjusting Entries LO4-1 [The following information applies to the questions displayed below] Mellor Towing Company provides hauling and delivery services for other businesses. It is at the end of its accounting year ending December 31. The following data that must be considered were developed from the company's records and related documents: a. On January 1 of the current year, the company purchased a new hauling van at a cash cost of $23,800. Depreciation estimated at $3,100 for the year has not been recorded for the current year. b. During the current year, office supplies amounting to $860 were purchased for cash and debited in full to Supplies. At the end of last year, the count of supplies remaining on hand was $260. The inventory of supplies counted on hand ot the end of the current year was $410. c. On December 31 of the current year, Lanie's Garage completed repairs on one of Mellor Towing's trucks at a cost of $1,080; the amount is not yet recorded by Mellor Towing and by agreement will be paid during January of next year. d. On December 31 of the current year, property taxes on land owned during the current year were estimated at $1,480. The taxes have not been recorded and will be paid in the next year when billed. e. On December 31 of the current year, the company completed towing service for an out-of-state company for $7,000 payable by the customer within 30 days. No cash has been collected, and no journal entry has been made for this transaction. 1. On July 1 of the current year, a three-year insurance premium on equipment in the amount of $1,020 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1 of the current year. 9. On October 1 of the current year, the company borrowed $7,200 from the local bank on a two-year, 12 percent note payable. The principal plus interest is payable at the end of 24 months. h. The income before any of the adjustments or income taxes was $34,000. The company's income tax rate is 40 percent. (Hint: Compute adjusted pre-tax income based on (a) through (g) to determine income tax expense.)