3.On October 1, 2018, Pastina signed a $57,000 note that requires interest to pa

Question

3.On October 1, 2018, Pastina signed a $57,000 note that requires interest to paid annually on September 30 at 12% and will have principal due in 10 years.

Note: Enter debits before credits.

4.On March 1, 2018, the company lent $27,000. The note required principal and interest at 8% be paid on February 28, 2019.

5.On April 1, 2018, the company paid $6,840 for a two-year fire insurance policy and debited the entire amount to insurance expense.

Note: Enter debits before credits.

6.Supplies on hand at December 31, 2018 were $700.

Note: Enter debits before credits.

Explanation / Answer

Transaction

General Journal

Debit

Credit

3

Interest expense

$1,710.00

Interest payable

$1,710.00

(Interest Expenses Booked for the Year end)

4

interest receivable

$1,800.00

interest revenue

$1,800.00

(Interest Receivable on Notes Receivable)

5

Prepaid insurance

$4,275.00

Insurance expense

$4,275.00

(Being 3 Months Insurance Not expired Yet and recorded as Asset)

6

Supplies expense

$   300.00

Supplies

$   300.00

(Amount of supplies consumed booked as expenses)

Note* The Amount of Supplies purchased +Opening are assumed to be $1000.

Transaction

General Journal

Debit

Credit

3

Interest expense

$1,710.00

Interest payable

$1,710.00

(Interest Expenses Booked for the Year end)

4

interest receivable

$1,800.00

interest revenue

$1,800.00

(Interest Receivable on Notes Receivable)

5

Prepaid insurance

$4,275.00

Insurance expense

$4,275.00

(Being 3 Months Insurance Not expired Yet and recorded as Asset)

6

Supplies expense

$   300.00

Supplies

$   300.00

(Amount of supplies consumed booked as expenses)

Note* The Amount of Supplies purchased +Opening are assumed to be $1000.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.