The following transactions occurred during 2018 for the Beehive Honey Corporatio

Question

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

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.

Feb. 1 Borrowed $15,000 from a bank and signed a note. Principal and interest at 10% will be paid on January 31, 2019. Apr. 1 Paid $4,200 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $3,100 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2018, supplies costing supplies costing $1,400 remained on hand. Nov. 1 A customer borrowed $6,900 and signed a note requiring the customer to pay principal and 8% interest on April 30, 2019.

Explanation / Answer

1.

2.

Date General Journal Debit Credit Feb 01, 2016 Cash 15000 Note payable 15000 Apr 01, 2016 Prepaid insurance 4200 Cash 4200 Jul 17, 2016 Supplies 3100 Accounts payable 3100 Nov 01, 2016 Note receivable 6900 Cash 6900

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