Question

please complete journal entries

A company has a fiscal year-end of December 31: (1) on October 1, $31,000 was paid for a one-year fire insurance policy: (2) on June 30 the company advanced its chief financial officer $29,000: principal and interest at 7% on the note are due in one year, and (3) equipment costing $79,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $15,800 per year. Prepare the necessary adjusting entries at December 31 for each of the above items. (If no entry is required for a transaction/event. select "No journal entry required" in the first account field.)

Answer 1

	Adjusting Entries
	Tr	General Journal				Debit	Credit
	1)	Insurance expense				7750
		prepaid insurance					7,750
		(31000/12)*3
	2)	interest receivable				1015
		interest income					1,015
		(29,000*7%*6/12)
	3)	Depreciation expense				15,800
		Accumulated depreciation-Equipment					15,800