COTB Exercise $2-9($Algo$)$ External transactions and adjusting entries $[$LO$2-3,2-6]$

The following transactions occurred during Year $1$ for a company:

February $1$ Borrowed $$26,000$ from a bank and signed a note. Principal and interest at $12\%$ will be paid on January $31,$ Year $2.$

April $1$ Paid $$6,400$ to an insurance company for a two$-$year fire insurance policy.

July $17$ Purchased supplies costing $$4,200$ on account. At the year$-$end on December $31,$ Year $1,$ supplies costing $$1,950$ remained on hand.

November $1$ A customer borrowed $$6,000$ and signed a note requiring the customer to pay principal and $10\%$ interest on April $30,$ Year $2.$

Required:

Record each transaction in general journal form.

Prepare any necessary adjusting entries at the year$-$end on December $31,$ Year $1.$ No adjusting entries were recorded during the year for any item.

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Required $2$

Prepare any necessary adjusting entries at the year$-$end on December $31,$ Year $1.$ No adjusting entries were recorded during the year for any item.

Note: Do not round intermediate calculations. If no entry is required for a particular transaction$/$event$,$ select $"$No journal entry required" in the first account field.

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Required $1$

Required $2$

Prepare any necessary adjusting entries at the year$-$end on December $31,$ Year $1.$ No adjusting entries were recorded durin the year for any item.

Note: Do not round intermediate calculations. If no entry is required for a particular transaction$/$event$,$ select $"$No journal entry required" in the first account field.

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$\backslash$table$[[$No$,$Date,,,Debit,Credit$],[1,$December $31,$ Yeal,Interest expense,$,,($I$)],[,$Interest payable,$,,],[2,$December $31,$ Yeal,Insurance expense,$,,],[,$Prepaid insurance,$,,],[3,$December $31,$ Yeal,Supplies expense,$,2,250,],[,$Supplies,$,,2,250\frac{O}{?}$