Question

The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $12,eee from a bank and signed a note. Principal and interest at lex wall be paid on January 31, 2022. Apr. 1 Paid $3,6ee to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $2,800 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplies costing $1,250 remained on hand. Nov. 1 A customer borrowed 56,eee and signed a note requiring the customer to pay principal and interest on April 30, 2022. 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record each transaction in general journal form. (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 < 1 2 3 4 Borrowed $12.000 from a bank and signed a note. Principal and interest at 10% will be paid on January 31, 2022. Note Enter debits before credits Date Feb 01.2021 General Journal Debit Credit Record entry Clear entry View general journal Required 2 >

Answer 1

1. General Journal

Date	Account Title and Explanation	Debit	Credit
Feb.01	Cash	$12,000
	Notes Payable		$12,000
April.01	Prepaid Insurance	$3,600
	Cash		$3,600
July.17	Supplies	$2,800
	Accounts Payable		$2,800
Nov.01	Notes Receivable	$6,000
	Cash		$6,000

2. Adjusting Journal Entries

General Journal

Date	Account Title and Explanation	Debit	Credit
Dec.31	Interest Expense	$1,100
	Interest Payable ($12,000×10%×11/12)		$1,100
Dec.31	Insurance Expense	$1,350
	Prepaid Insurance ($3,600×9/24)		$1,350
Dec.31	Supplies Expenses	$1,550
	Supplies ($2,800-$1,250)		$1,550
Dec.31	Insurance Receivables	$80
	Interest Revenue ($6,000×8%×2/12)		$80