Journalize the following business transactions in general journal form.

• Signed a lease for office space, at $9500 per year for five years. The lease will be effective in the next accounting period (Significant?).

On sept 1, Starr Guitar Corp. borrowed $24000 from their bank, and signed a 8%, 3-month bank loan. Principal and interest are due on December 1. If Starr prepares monthly financial statements, the adjusting entry that they should prepare for interest on Sept 30 would be? Explain why?