A company has a fiscal year-end of December 31: (1) on October 1, $14,000 was paid...

A company has a fiscal year-end of December 31: (1) on October 1, $14,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $12,000; principal and interest at 6% are due in one year; and (3) equipment costing $62,000 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 journal entry required" in the first account field.)

1. On October 1, $14,000 was paid for a one-year fire insurance policy.

2. On June 30 the company lent its chief financial officer $12,000; principal and interest at 6% are due in one year.

3. Equipment costing $62,000 was purchased at the beginning of the year for cash.

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ekkarill92 answered 2 years ago

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