Question

Homework Week 2 i Samed Help Save & Exit Submit Check my work 00. Exercise 2-16 (Algo) External transactions and adjusting entries (LO2-3, 2-6] The following transactions accurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $22,000 from a bank and signed a note. Principal and interest at 96 will be paid on January 31, 2022. Apr. Paid $5,600 to un insurance company for a two-year fire insurance policy. July 17 Purchased suppliey couting $3,800 un account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplier custin $1,750 cene ined on hand. Nov. A customer borrowed $9,000 and signed a nute requiring the customer to my principal and 7% interest on April 30, 2022. eBook Pert Required: 1. Record each transaction in general journal form. 2. Prepare any necessary adjusting entries at the year-end on December 31, 2021, No adjusting entries were recorded during the year for any item. Retorences Complete this question by entering your answers in the tabs below. Required 1 Required Prepare any necessary adjusting entries at the year-end on December 31, 2021. No adjusting entries were recorded during the year for any item. (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.) View transaction list Journal entry worksheet 2 3 4 Borrowed $22,000 from a bank and signed a note. Principal and interest at 9% will be paid on January 31, 2022

Answer 1

1
Journal entries:
Date	Particular	dr	cr
1-Feb	Bank a/c……………………………………Dr	22000
	Note payable a/c		22000
	(being borrowed bank loan   )
1-Apr	Prepaid insurance a/c                      Dr	5600
	Bank a/c		5600
	( being paid for insurance policy )
17-Jul	Supplies a/c                              Dr	3800
	Account payable a/c		3800
	(being purchase of supplies on account)
1-Nov	Note receivable a/c                         Dr	9000
	Bank a/c		9000
	(being loan given to customer)
2
Closing Journal entries:
Date	Particular	dr	cr
31-Dec	Interest a/c                                           Dr	1815
	Interst payable a/c		`815
	(interest payable for loan for 11 months)
31-Dec	Insurance a/c                                      Dr	2100
	Prepaid insurance a/c		2100
	(being insurance paid for 2 year on which 9 months was expired)
31-Dec	Supplies expenses a/c                    Dr	2050
	Supplies a/c		2050
	(being $2050(3800-1750) supplies are utilities during the year)
31-Dec	Interest receivable a/c                   Dr	105
	interest income a/c		105
	(being interest receivable for2 months )
working notes:
a.	interest payable = 22000*9%*11/12 monhs
	=1815
b.	insurance expense =5600*9/24 months
c.	interest receivable=9000*7%*2/12 months
	=105