week 3 E2-13 - 2. Prepare any necessary adjusting entries...

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E 2-13 External transactions and adjusting entries LO2 LO4 LO5 The following transactions occurred during 2006 for the Beehive Honey Corporation:
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Feb. 1 Borrowed $20,500 from a bank and signed a note. Principal and interest at 9% will be paid on January 31, 2007. Apr. 1 Paid $3,600 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $3,300 on account. The company records supplies purchased in an asset account. At the December 31, 2006, year-end, supplies costing $1,473 remained on hand. Nov. 1 A customer borrowed $6,700 and signed a note requiring the customer to pay principal and 4% interest on April 30, 2007. Required: 1. Record each transaction in general journal form. Omit explanations.
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Unformatted text preview: 2. Prepare any necessary adjusting entries at the December 31, 2006, year-end. No adjusting entries were made during the year for any item. Enter adjusting entries in the same order as they appear above. Round answers to nearest whole number. 1. 2006 Debit Credit Feb. 1 Cash 20500 Note payable 20500 April 1 Prepaid insurance 3600 Cash 3600 July 17 Supplies 3300 Accounts payable 3300 Nov. 1 Note receivable 6,700 Cash 6,700 2. 2006 Debit Credit Dec. 31 Interest expense 1,691 Interest payable 1,691 Dec. 31 Insurance expense 1,350 Prepaid insurance 1,350 Dec. 31 Supplies expense 1827 Supplies 1827 Dec. 31 Interest receivable 45 Interest revenue 45...
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This note was uploaded on 03/30/2010 for the course COB ACCY 202 taught by Professor Shapland during the Spring '10 term at University of Illinois, Urbana Champaign.

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week 3 E2-13 - 2. Prepare any necessary adjusting entries...

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