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Ira Lisetskai [31]
3 years ago
15

The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $16,000 from a bank and signe

d a note. Principal and interest at 9% will be paid on January 31, 2022. Apr. 1 Paid $4,400 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $3,200 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplies costing $1,450 remained on hand. Nov. 1 A customer borrowed $7,200 and signed a note requiring the customer to pay principal and 7% 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.

Biology
1 answer:
Murljashka [212]3 years ago
8 0

Answer: See explanation

Explanation:

Journal entry simply has to do with the recording of transactions in an accounting book which signifies the debit and credit balances of the company.

For the adjusting entries:

On Dec 31:

Interest expense:

= 16000 × 9% × 11/12

= 1320

Prepaid insurance

= 4400/24 × 9

= 1650

Check the attached file for further explanation.

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