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A company that has a fiscal year-end of December 31: (1) on October 1, $31,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $29,000; principal and interest at 7% are due in one year; and (3) equipment costing $79,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $15,800 per year.
Prepare the necessary adjusting entries at December 31 for each of the above items.
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