Question

3 A company has a fiscal year-end of December 31: (1) on October 1, $26,000 was paid for a one-year fire insurance policy: (2) on June 30 the company advanced its chief financial officer $24,000; principal and interest at 6% on the note are due in one year, and (3) equipment costing $74,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $14,800 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.) 1:54:37 View transaction list pped Journal entry worksheet Book 1 2 3 Tint On October 1, $26,000 was paid for a one-year fire insurance policy. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal

Answer 1

Transaction	General Journal	Debit $	Credit $
1	Insurance Expense	6,500
	Prepaid Insurance		6,500
	(26,000 x 3/12 )
2	Interest Receivable	720
	Interest Revenue		720
	(24,000 x 6% x 6/12 )
3	Depreciation Expense	14,800
	Accumulated Depreciation-Equipment		14,800