A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $11,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $61,000 was purchased at the beginning of the year for cash.
A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $11,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $61,000 was purchased at the beginning of the year for cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $11,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $61,000 was purchased at the beginning of the year for cash.
Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No
3. Equipment costing $61,000 was purchased at the beginning of the year for cash.
Transcribed Image Text:Journal entry worksheet
1
2
3
On June 30 the company advanced its chief financial officer $11,000; principal
and interest at 5% are due in one year.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
2
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet
1
2
3
On October 1, $13,000 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
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