Answer:
a. Dr Depreciation expense $5,000
Cr Accumulated depreciation $5,000
b. Dr Interest receivable 750
Cr Interest revenue 750
c. Dr Unearned revenue 2,000
Cr Service revenue 2,000
Explanation:
Preparation to record the necessary adjusting entry for Huskies Insurance at its year-end of December 31.
a. Dr Depreciation expense $5,000
Cr Accumulated depreciation $5,000
(Being to adjust for Depreciation of Equipment)
b. Dr Interest receivable 750
Cr Interest revenue 750
(30,000*5%*6/12)
(Being to adjust for accrued interest)
c. Dr Unearned revenue 2,000
Cr Service revenue 2,000
(8,000*3/12)
(Being to adjust for accrued rent revenue)
