The following information applies to the questions displayed below) Martin Towing Company 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: On January 1 of the current year, the company purchased a new hauling van cash cost of $20.000. 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 $1000 were purchased for cash and debited in to Supplies. At the end of test you the count of supplies remaining on hand was $500. The inventory of supplies counted on hand at the end of the current year was $150. c On December 31 of the current you, Lanie's Garage completed repairs on one of the company's trucks at a cost of $2,500, the amount is not yet recorded by Martin 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 $1800. The taxes have not been recorded and will be paid in the next year when bied. On December 31 of the current yew, the company completed towing service for an out of state company for $4.000 payable by the customer within 30 days. No cash has been collected, and no journal entry has been made for this transaction On July of the current year, a three year insurance premium on equipment in the amount of $900 was paid and debited in ful to Prepaid Insurance on that date. Coverage began on July 1 of the current year On October of the current year the company borrowed $10,000 from the local bank on a one year, 12 percent note payable. The principal plus interest is payable at the end of 12 months. The income before any of the adjustments of income was $10.000. The company's federal income tax rate is 30 percent i Compute adjusted pre-tax income based on a through a to determine Income tax expense) 2. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use for increase for decrease (Reminder: Assets Liabilities Stockholders' Equity, Revenues- Expenses Net Income and Not Income accounts are closed to retained Earnings, a part of Stockholders' Equity) Transaction Asset 3.300 1350 Answer is complete but not entirely correct. Balance Sheet Income Statement Liabilities Stockholders Net Income (3,3001 3.300 3.300 13500 940 (940) 1.190 (1.100 1.190 (1.1901 1,370 (1.370) 1,370 (1,3701 6,700 6.700 -6,700 (150) (150) 288 (288) 288 (288) 12.085 (12.905) 12. (12.905) 6.700 (150) 9 h