Cactus Company\'s annual accounting year ends on June 30. Assume it is June 30,
ID: 2408986 • Letter: C
Question
Cactus Company's annual accounting year ends on June 30. Assume it is June 30, and all of the entries except the following acjusting journal entries have been made The company earned service revenue of $2,900 on a special job that was completed June 29. Collection will be made during July, no entry has been recorded. o. On March 31, Coctus paid a six-month premium for property insurance in the amount of $3,380 for coverage starting on that date. Cash wes credited and Prepaid Insurance was debited for this amount. b. At June 30, wages of $990 were eamed by employees but not yet paid. The employees will be paid on the next payroll date, which is July 15. On June 1, Coctus collected two months' revenue of $540. At that date, Coctus debited Cash and credited Uneamed Revenue for $540. One-half of it has now been eamed but not yet recorded. d. e. Depreciation of $1,590 must be recognized on a service truck purchased on July 1 of the previous year. f. Cash of $4,740 was collected on May 1 for services to be renclered evenly over the next year beginning on May 1. Unearned Revenue was credited when the cosh was received. Some of it has now been eamed but not yet recorded. when the loan is repaid next year on January 31 rate is 25% Compute and record income tax expense. The company owes interest of $690 on a bank loan taken out on February 1. The interest will be paid h. The income after all adjustments except income taxes was $29,000 The company's federal income taxExplanation / Answer
TR Assets liabilities Stockholders Equity a. Accounts receivable 2,900 service revenue 2,900 b. prepaid insurance -1690 insurance expense -1,690 c. Wages payable 990 Wage expense -990 d. unearned revenue -270 revenue 270 e Accumulated deprec -1,590 Depreciation expense -1,590 f. unearned revenue -790 service revenue 790 g. interest payable 690 interest expense -690 h. income tax payable 7250 income tax -7,250