Prepare the necessary adjusting entries at December 31 for each of the items listed in BE 2–4. Depreciation on the equipment is $12,000 per year.
In BE 2-4, Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31:
(1) On October 1, $12,000 was paid for a one-year fire insurance policy;
(2) On June 30 the company lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and
(3) Equipment costing $60,000 was purchased at the beginning of the year for cash.

  • CreatedJune 24, 2013
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