Question

Consider the following transactions for Huskies Insurance Company a. Equipment costing $36,600 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,100 per year b On June 30, the company lends its chief financial officer $41,000; principal and interest at 7% are due in one year c. On October 1, the company receives $12,400 from a customer for a one-year property insurance policy. Deferred Revenue is credited Required Indicate by how much net income in the income statement is higher or lower if the adjustment is not recorded. Transaction Net Income 0. C. Total