Reference no: EM132597789

Question 1: 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.