Preparing Adjusting Journal Entries Baker Corp., which produces fine confections, had the following transactions during the year. Jan. 1 Purchased insurance policy for $19,200 cash that expires on December 31 of next year. Mar. 31 Borrowed $120,000 cash from a bank and signed a one-year note payable, with interest of 4% due at maturity. June 30 Purchased equipment for $80,000 cash. The equipment will be depreciated evenly over five years. Dec. 1 A key customer borrows $24,000 cash and signs a 1-year note that requires the customer to pay the loan of $24,000 plus interest of 10% upon maturity. Dec. 15 $7,200 cash collected for a performance obligation to be completed in January of next year. Hint: Credit Deferred Revenue when collected. Prepare the original journal entry for each transaction on the date provided. Provide the year-end adjusting journal entry (if applicable) for each situation. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero)