Question
What would the journal entry be for these adjusting entries? 1. On October 1, the company loaned $3,000 to an officer who will repay the
What would the journal entry be for these adjusting entries?
1. On October 1, the company loaned $3,000 to an officer who will repay the loan in one year at an annual interest rate of 12%.
2. On November 1, the company deposited $10,000 in a savings account that earned 3% interest per year.
3. Paid $1,100 for an 11-month insurance premium on July 1, this year. The entry in July increased the Prepaid insurance account.
4. Purchased equipment for $12,000 cash on January 1, this year; estimated a useful life of five years with a residual value of $2,000.
5. Unearned rent revenue of $900 was for rent for the period December 1, this year, to March 1, next year.
6. On July 1, the company took out a 1 year note for $3,000 at an interest rate of 10%
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