{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
E 2-13 External transactions and adjusting entries LO2 LO4 LO5 The following transactions occurred during 2006 for the Beehive Honey Corporation:
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern