Question

The following transactions occurred during 2018 for the Beehive Honey Corporation:

Feb.		1		Borrowed $31,000 from a bank and signed a note. Principal and interest at 12% will be paid on January 31, 2019.
Apr.		1		Paid $7,400 to an insurance company for a two-year fire insurance policy.
July		17		Purchased supplies costing $4,700 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2018, supplies costing supplies costing $2,200 remained on hand.
Nov.		1		A customer borrowed $7,500 and signed a note requiring the customer to pay principal and 10% interest on April 30, 2019.

Required:
1. Record each transaction in general journal form.
2. Prepare any necessary adjusting entries at the year-end on December 31, 2018. No adjusting entries were recorded during the year for any item.

Record each transaction in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Borrowed $31,000 from a bank and signed a note. Principal and interest at 12% will be paid on January 31, 2019.

	Date General Journal Debit Credit Feb 01, 2018

• Paid $7,400 to an insurance company for a two-year fire insurance policy.

	Date General Journal Debit Credit Apr 01, 2018

• Purchased supplies costing $4,700 on account. The company records supplies purchased in an asset account. At the December 31, 2018, year-end, supplies costing $2,200 remained on hand.

	Date General Journal Debit Credit Jul 17, 2018

• A customer borrowed $7,500 and signed a note requiring the customer to pay principal and 10% interest on April 30, 2019.

	Date General Journal Debit Credit Nov 01, 2018

Prepare any necessary adjusting entries at the December 31, 2018, year-end. No adjusting entries were recorded during the year for any item. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Borrowed $31,000 from a bank and signed a note. Principal and interest at 12% will be paid on January 31, 2019.

	Date General Journal Debit Credit Dec 31, 2018

• Paid $7,400 to an insurance company for a two-year fire insurance policy.
• On July 17, supplies were purchase for $4,700 and recorded in an asset account. At December 31, year-end, supplies costing $2,200 remained on hand.
• A customer borrowed $7,500 and signed a note requiring the customer to pay principal and 10% interest on April 30, 2019.

Answer 1

Date	General Journal	Debit	Credit
Feb 01, 2018	Cash	$31,000
	Note Payable		$31,000
Apr 01, 2018	Prepaid Insurance	$7,400
	Cash		$7,400
Jul 17, 2018	Supplies	$4,700
	Accounts Payable		$4,700
Nov 01, 2018	Note Receivable	$7,500
	Cash		$7,500
Dec 31, 2018	Interest Expense	$3,410
	Interest Payable		$3,410
	($31,000 x 12% x 11/12)
Dec 31, 2018	Insurance Expense	$2,775
	Prepaid Insurance		$2,775
	($7,400 x 9/24)
Dec 31, 2018	Supplies Expense	$2,500
	Supplies		$2,500
	($4,700 - $2,200)
Dec 31, 2018	Interest Receivable	$125
	Interest Revenue		$125
	($7,500 x 10% x 2/12)