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Solved: Watson Fishing Charters Has Collected T (Click The Icon To View The Data) E Following Data For The December 31 Adjusting Entries: Read The Raquirements Explanation On The Last Line Of The Joum

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Watson Fishing Charters has collected t (Click the icon to view the data) e following data for the December 31 adjusting entrd. Watsons fishing boat was purchased on January 1 at a cost of $59,000. Watson expects to use the boat for ten years and th



Watson Fishing Charters has collected t (Click the icon to view the data) e following data for the December 31 adjusting entries: Read the raquirements explanation on the last line of the joumal entry table) Requirement 1. Journalize the adusting entries needed on December 31 for Watson Fishing Charters. Assume Watson records adjusting entries only at the end of the year (Record debits first, then credits. Select th electric bill on December 20 for $300 but will not pay It until January 5. (Use the Utilities Payable account ) a. The company recelved Date Accounts and Explanation Debit Credit (a) Dec. 31 - X i More Info a. The company received its electric bill on December 20 for $300 bul will not pay it untl January 5. (Use the Utilities Payable account) nNovember 1 for $3.600. Watson recorded a debit to Prepaid Insurance. b. Watson purchased a three-month boat insurance policy 51600 Watson rocorded a deht to Prepaid In oNovember 1 for C. As of Dacamber not been recorded or received Accounts and Explanation Date Debit Credit Watson had eamad $4,000 of charter ravenue that has (b) Dec. 31 thased on January 1 at a cost of $59,000. years and that it will have a residual nual depreciation assuming the straight-ina Watson axpects to use the boat for demueciation gelbod is used e. On October 1, Watson received $7,500 prepayment for a deep-sea fishing of December 31, Watson hes ald December, . of December 31, Watson had eamed $4,000 of charter revenue that has not been recorded or recelved. C. Accounts and Explanation Date Debit Credit Print Done (c) Dec 31 d. Watson's fishing boat was purchased on January 1 at a cost of $59,000. Watson expects to use the boat for ten years and that it will have a residual value of $4,000. Determine annual depreciation assuming the straight-line depreciation method is used Accounts and Explanation Date Debit Credit (d) Dec. 31 Watson received $7,500 prepayment for a deep-sea fishing charter to take place in December. As of December 31, Watson has completed the charter. (When the cash was received, assume that a liability account was credited.) n October e. Accounts and Explanation Date Debit Credit (e) Dec. 31 Requirement 2. IF Watson had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated Begin by completing the table for adjustment a and then transactions b through e Specific Category of Specific Category Over Over Accounts on the of Accounts on the Adjusting Understated Entry Balance Sheet Understated Income Statement (a) (b (c (d (e Choose from any list or enter any number in the input fields and then continue to the next question

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Journal entry Date Accounts title and explanation Debit Credit (a) Dec. 31 Utilities expenses $300 Utilities payable $300 (To accrue utilities expenses)

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