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Wright Fishing Charters has collected the following data for the December adjusting entries: The company received its electric bill on December 20 for $225 but
Wright Fishing Charters has collected the following data for the December adjusting entries: The company received its electric bill on December 20 for $225 but will until January 5. (Use the Utilities Payable account.) Wright purchased a nine-month boat insurance policy on November 1 for Wright recorded a debit to Prepaid Insurance. As of December 31, Wright had earned $2,000 of charter revenue that has been recorded or received. Wright's fishing boat was purchased on January 1 at a cost of $44, 500. Wright expects to use the boat for five years and that it will have a residual value of $4, 500. Determine annual depreciation assuming the straight-line depreciation method is used. On October 1, Wright received $8,000 prepayment for a deep-sea fishing to take place in December. As of December 31, Wright has completed the
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