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The following transactions occurred during 2013 for the Beehive Honey Corporation:
Feb. 1 Borrowed $12,000 from a bank and signed a note. Principal and interest at 10% will be paid on January 31, 2014.Apr. 1 Paid $3,600 to an insurance company for a two year fire insurance policy.July 17 Purchased supplies costing $2,800 on account. The company records supplies purchased in an asset account. At the December 31, 2013, year-end, supplies costing $1,250 remained on hand.Nov. 1 A customer borrowed $6,000 and signed a note requiring the customer to pay principal and8% interest on April 30, 2014.
Required:1. Record each transaction in general journal form. Omit explanations.2. Prepare any necessary adjusting entries at the December 31, 2013, year end. No adjusting entries were made during the year for any item.
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