Totka Towing Company is at the end of its accounting year, December 31, 2003. The following data that must be considered were developed from the company's records and related documents:

a. On July 1 , 2003, a three-year insurance premium on equipment in the amount of $ 1 ,200 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1

b. During 2003, office supplies amounting to $800 were purchased for cash and debited in full to Supplies. At the end of 2002, the count of supplies remaining on hand was $200. The inventory of supplies counted on hand at December 31, 2003, was $300.

c. On December 3 1 , 2003, HH's Garage completed repairs on one of the company's trucks at a cost of $800; the amount is not yet recorded and by agreement will be paid during January 2004.

d. In December 2003, a tax bill for $1,600 on land owned during 2003 was received from the city.

The taxes, which have not been recorded, are due and will be paid on February 15, 2004.

e. On December 31, 2003, the company completed a contract for an out-of-state company for

$8,000 payable by the customer within 30 days. No cash has been collected, and no journal entry has been made for this transaction.

/ On July 1, 2003, the company purchased a new hauling van at a cash cost of $23,600. Depreciation estimated at $1,100 for the year has not been recorded for 2003.

g. On October 1, 2003, 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.

h. The income before any of the adjustments or income taxes was $30,000. The company's federal income tax rate is 30 percent. Compute adjusted income based on

(a) through (g) to determine income tax expense.

Required: 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Give the adjusting entry required for each transaction at December 31, 2003.