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Prepare Adjusting Journal Entries on the general journal using the following information. Please make sure the interest is up to date and the depreciation is recorded. On 3/1/21, the company purchased a large fishing boat for $20,000 of which had a down payment of $5,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable’s principle has a 4% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $4,000. Straight-line depreciation method is used.   Liability insurance was purchased on 5/1/21. The 18 month policy cost $4,600 and was paid in full. Shark Bait purchased $12,000 of office supplies and lures from Huge Minnows Company on 4/1/21 on account. Also, on 11/5/21, Shark Bait received $3,400 cash for the sale of some unused lures that were bought on 4/1/21 for $2,900. On 12/31/21, due to the use of office supplies, the Office Supplies and lures only added up to $2,000. On 6/1/21, Shark Bait received $10,000 cash for a tour that would take place on 2/4/22. On 12/30/21, 50% of the services were provided early from the customers that paid cash on 6/1/21

Prepare Adjusting Journal Entries on the general journal using the following information. Please make sure the interest is up to date and the depreciation is recorded. On 3/1/21, the company purchased a large fishing boat for $20,000 of which had a down payment of $5,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable’s principle has a 4% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $4,000. Straight-line depreciation method is used.   Liability insurance was purchased on 5/1/21. The 18 month policy cost $4,600 and was paid in full. Shark Bait purchased $12,000 of office supplies and lures from Huge Minnows Company on 4/1/21 on account. Also, on 11/5/21, Shark Bait received $3,400 cash for the sale of some unused lures that were bought on 4/1/21 for $2,900. On 12/31/21, due to the use of office supplies, the Office Supplies and lures only added up to $2,000. On 6/1/21, Shark Bait received $10,000 cash for a tour that would take place on 2/4/22. On 12/30/21, 50% of the services were provided early from the customers that paid cash on 6/1/21

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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Prepare Adjusting Journal Entries on the general journal using the following information. Please make sure the interest is up to date and the depreciation is recorded.

On 3/1/21, the company purchased a large fishing boat for $20,000 of which had a down payment of $5,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable’s principle has a 4% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $4,000. Straight-line depreciation method is used.

 

  1. Liability insurance was purchased on 5/1/21. The 18 month policy cost $4,600 and was paid in full.
  2. Shark Bait purchased $12,000 of office supplies and lures from Huge Minnows Company on 4/1/21 on account. Also, on 11/5/21, Shark Bait received $3,400 cash for the sale of some unused lures that were bought on 4/1/21 for $2,900. On 12/31/21, due to the use of office supplies, the Office Supplies and lures only added up to $2,000.
  3. On 6/1/21, Shark Bait received $10,000 cash for a tour that would take place on 2/4/22. On 12/30/21, 50% of the services were provided early from the customers that paid cash on 6/1/21.
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