Consider the following transactions for Huskies Insurance Company: a. Equipment costing $40,800 is purchased at the...

Consider the following transactions for Huskies Insurance Company:

a. Equipment costing $40,800 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,800 per year.

b. On June 30, the company lends its chief financial officer $48,000; principal and interest at 5% are due in one year.

c. On October 1, the company receives $15,200 from a customer for a one-year property insurance policy. Deferred Revenue is credited.

Expert Solution

Year End Entries

Particulars	Debit	Credit
Depreciation	6800
To Acc Dep		6800

Interest Recievable (480005%6/12)	1200
To Interest Revenue		1200

Deffered Revenue (15200*3/12)	3800
To Service Revenue (15200*3/12)		3800

ekkarill92 answered 2 years ago

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