Reference no: EM132532974

Shown below is the trial balance for Dunbar Corporation as at June 30, 2017, the company's year end. The company owner provides you with the following additional information:

1. No interest has been paid yet on the note payable. The note has been outstanding since April 1 and the interest rate is 12%.
2. The equipment originally cost $200,000 and has an estimated residual value of $10,000 and a useful life of 10 years.
3. On June 1 the company renewed its insurance policy and paid a $1,800 premium for the year. It was correctly recorded at that time as prepaid insurance.
4. On October 1, 2016 the company sold a 12-month service contract to a client for $200,000 and recorded it as Unearned Revenue because at that point they had not yet provided any service to the client.

Dunbar Corporations

Trial Balance

As of June 30, 2017

Required:

Question 1: Prepare a adjusting entries required.