Question: Prepare the necessary adjusting entries at December 31 for each

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.


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  • CreatedJune 24, 2013
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