1madison harris, the owner, invested $7,800 cash and $34,800 of photography equipment in the company in exchange for common stock. 2 the company paid $3,400 cash for an insurance policy covering the next 24 months. 5 the company purchased office supplies for $1,010 cash. 20 the company received $4,631 cash in photography fees earned. 31 the company paid $805 cash for august utilities. prepare general journal entries for the above transactions.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan