Reference no: EM133021562

Problem - Recording transactions and adjusting entries - Iginla Inc. has a fiscal year end of December 31, 2017. Below are transactions that occurred during the year:

a) On February 1, the company purchased a 1-year insurance policy for $4,800 cash.

b) On May 17, the company purchased $2,000 of supplies on account. The supplies were counted at year end, and there were $450 remaining.

c) On August 31, the company purchased a truck for $38,000. The truck's estimated useful life is 12 years, and there is no expected residual value.

d) On November 1, the company loaned $1,000 cash to an employee. The employee promised to repay the company the principal plus 3% annual interest on January 31, 2018.

e) On November 20, the company received a $5,000 advance payment for cleaning services it would deliver for the months of December and January. As of December 31, it had successfully fulfilled its first month of obligation.

Required - For the transactions above, record a journal entry for the original transaction and record the required year-end adjustment. (If no journal entry is required, write "no entry").