BE 2-4Prepare journal entries for each of the following transactions for a company that has a fiscal year-end ofDecember 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the com-pany lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and (3) equipmentcosting $60,000 was purchased at the beginning of the year for cash.Journal entries• LO2-2

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Asked Jan 14, 2020
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Prepare the necessary adjusting entries at December 31 for each of the items listed in BE 2–4. Depreciation on the equipment is $12,000 per year.

BE 2-4
Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of
December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the com-
pany lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and (3) equipment
costing $60,000 was purchased at the beginning of the year for cash.
Journal entries
• LO2-2
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BE 2-4 Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the com- pany lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and (3) equipment costing $60,000 was purchased at the beginning of the year for cash. Journal entries • LO2-2

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