Accounting for Prepayments and Capital Assets}

\section*{Required}

Prepare journal entries for the Iron City general fund for the following, including any adjusting and closing entries on December 31, 20X1:

1. Acquired a three-year fire insurance policy for \(\$ 5,400\) on September 1, 20X1.

2. Ordered new furniture for the city council meeting room on September 17, 20X1, at an estimated cost of \(\$ 15,600\). The furniture was delivered on October 1, the actual cost was \(\$ 15,200\), the estimated life of the furniture is 10 years, with no residual value.

3. Acquired supplies on November 4, 20X1, for \(\$ 1,800\). Iron City uses the consumption method of accounting. Supplies on hand on December 31 were \(\$ 1,120\)