Brokeback Towing Company is at the end of its accounting year,December 31, 2015. The following data that must be considered weredeveloped from the companyâs records and related documents: a. OnJuly 1, 2015, a two-year insurance premium on equipment in theamount of $792 was paid and debited in full to Prepaid Insurance onthat date. Coverage began on July 1. b. At the end of 2015, theunadjusted balance in the Supplies account was $1,000. A physicalcount of supplies on December 31, 2015, indicated supplies costing$380 were still on hand. c. On December 31, 2015, YYâs Garagecompleted repairs on one of Brokebackâs trucks at a cost of $880.The amount is not yet recorded. It will be paid during January2016. d. On December 31, 2015, the company completed a contract foran out-of-state company for $8,350 payable by the customer within30 days. No cash has been collected and no journal entry has beenmade for this transaction. e. On July 1, 2015, the companypurchased a new hauling van. Depreciation for JulyâDecember 2015,estimated to total $3,150, has not been recorded. f. As of December31, the company owes interest of $580 on a bank loan taken out onOctober 1, 2015. The interest will be paid when the loan is repaidon September 30, 2016. No interest has been recorded yet. g. Assumethe income after the preceding adjustments but before income taxeswas $38,000. The companyâs federal income tax rate is 25%. Computeand record income tax expense. Required: 1. Give the adjustingjournal entry required for each item at December 31, 2015. (If noentry is required for a transaction/event, select "No Journal EntryRequired" in the first account field.

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Brokeback Towing Company is at the end of its accounting year,December 31, 2015. The following data that must be considered weredeveloped from the companyâs records and related documents: a. OnJuly 1, 2015, a two-year insurance premium on equipment in theamount of $792 was paid and debited in full to Prepaid Insurance onthat date. Coverage began on July 1. b. At the end of 2015, theunadjusted balance in the Supplies account was $1,000. A physicalcount of supplies on December 31, 2015, indicated supplies costing$380 were still on hand. c. On December 31, 2015, YYâs Garagecompleted repairs on one of Brokebackâs trucks at a cost of $880.The amount is not yet recorded. It will be paid during January2016. d. On December 31, 2015, the company completed a contract foran out-of-state company for $8,350 payable by the customer within30 days. No cash has been collected and no journal entry has beenmade for this transaction. e. On July 1, 2015, the companypurchased a new hauling van. Depreciation for JulyâDecember 2015,estimated to total $3,150, has not been recorded. f. As of December31, the company owes interest of $580 on a bank loan taken out onOctober 1, 2015. The interest will be paid when the loan is repaidon September 30, 2016. No interest has been recorded yet. g. Assumethe income after the preceding adjustments but before income taxeswas $38,000. The companyâs federal income tax rate is 25%. Computeand record income tax expense. Required: 1. Give the adjustingjournal entry required for each item at December 31, 2015. (If noentry is required for a transaction/event, select "No Journal EntryRequired" in the first account field.

Aug.	1	Great Adventures obtains a $38,000 low-interest loan for thecompany from the city council, which has recently passed aninitiative encouraging business development related to outdooractivities. The loan is due in three years, and 6% annual interestis due each year on July 31.
Aug.	4	The companypurchases 14 kayaks, costing $15,400.
Aug.	10	Twenty additional kayakers pay $3,200 ($160 each), in additionto the $6,600 that was paid in advance on July 30, on the day ofthe clinic. Tony conducts the first kayak clinic.
Aug.	17	Tony conducts asecond kayak clinic, and the company receives $11,800 cash.
Aug.	24	Office suppliesof $1,800 purchased on July 4 are paid in full.
Sep.	1	To provide better storage of mountain bikes and kayaks when notin use, the company rents a storage shed, purchasing a one-yearrental policy for $2,400 ($200 per month).
Sep.	21	Tony conducts arock-climbing clinic. The company receives $13,300 cash.
Oct.	17	Tony conducts an orienteering clinic. Participants practice howto understand a topographical map, read an altimeter, use acompass, and orient through heavily wooded areas. Clinic fees total$19,700.
Dec.	1	Tony decides to hold the companyâs first adventure race onDecember 15. Four-person teams will race from checkpoint tocheckpoint using a combination of mountain biking, kayaking,orienteering, trail running, and rock-climbing skills. The firstteam in each category to complete all checkpoints in order wins.The entry fee for each team is $650.
Dec.	5	To help organize and promote the race, Tony hires his collegeroommate, Victor. Victor will be paid $70 in salary for each teamthat competes in the race. His salary will be paid after therace.
Dec.	8	The company pays$1,800 to purchase a permit from a state park where the race willbe held. The amount is recorded as a miscellaneous expense.
Dec.	12	The company purchases racing supplies for $2,300 on account duein 30 days. Supplies include trophies for the top-finishing teamsin each category, promotional shirts, snack foods and drinks forparticipants, and field markers to prepare the racecourse.
Dec.	15	Forty teams paya total of $26,000 to race. The race is held.
Dec.	16	The company paysVictorâs salary of $2,800.
Dec.	31	The company paysa dividend of $4,100 ($2,050 to Tony and $2,050 to Suzie).
Dec.	31	Using his personal money, Tony purchases a diamond ring for$4,300. Tony surprises Suzie by proposing that they get married.Suzie accepts!

	Balance
Cash	$	19,390
Prepaid insurance		4,320
Supplies (Office)		1,800
Equipment (Bikes)		15,600
Accounts payable		1,800
Unearned revenue		6,600
Common stock		30,000
Service revenue (Clinic)		5,200
Advertising expense		1,190
Legal fees expense		1,300

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a.	Depreciation of the mountain bikes purchased on July 8 andkayaks purchased on August 4 totals $7,400.
b.	Six monthsâworth of insurance has expired.
c.	Four monthsâworth of rent has expired.
d.	Of the $1,800 ofoffice supplies purchased on July 4, $380 remains.
e.	Interest expenseon the $38,000 loan obtained from the city council on August 1should be recorded.
f.	Of the $2,300 ofracing supplies purchased on December 12, $100 remains.
g.	Suzie calculatesthat the company owes $13,500 in income taxes.

4.	Prepare an adjusted trial balance as of December 31, 2015.(The items in the Trial Balance should be grouped asfollows: Assets, Liabilities, Equity, Dividends, Revenues, andExpenses.)

5-a.	For the period July 1 to December 31, 2015, prepare an incomestatement.

5-b.	For the period July 1 to December 31, 2015, prepare an statementof stockholdersâ equity. All account balances on July 1 were zero.(Amounts to be deducted should be indicated with minussign.)

5-c.	Prepare a classified balance sheet as of December 31, 2015.

7.	Post the closing entries of retained earnings to theT-accounts.

8.	Prepare a post-closing trial balance as of December 31, 2015.(The items in the Trial Balance should be grouped asfollows: Assets, Liabilities, Equity.)