Wright Fishing Charters has collected the following data

for the #361

Wright Fishing Charters has collected the following data for the December 31 adjusting
entries:a. The company received its electric bill on December 20 for $225 but will not pay it until
January 5- (Use the Utilities Payable account.)b. Wright purchased a nine-month boat insurance
policy on November 1 for $9,000. Wright recorded a debit to Prepaid Insurance.c. As of
December 31, Wright had earned $2,000 of charter revenue that has not been recorded or
received.d. Wright’s fishing boat was purchased on January 1 at a cost of $44,500. Wright
expects to use the boat for five years and that it will have a residual value of $4,500. Determine
annual depreciation assuming the straight-line depreciation method is used.e. On October 1,
Wright received $8,000 prepayment for a deep-sea fishing charter to take place in December.
As of December 31, Wright has completed the charter.Requirements1. Journalize the adjusting
entries needed on December 31 for Wright Fishing Charters. Assume Wright records adjusting
entries only at the end of the year.2. If Wright 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. Use the following table as a guide.
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Wright Fishing Charters has collected the following data for the

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