The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $24,000 from a bank and signed a note. Principal and interest at 8% will be paid on January 31, 2022.
Apr. 1 Paid $6,000 to an insurance company for a two-year fire insurance policy.
July 17 Purchased supplies costing $4,000 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplies costing $1,850 remained on hand.
Nov. 1 A customer borrowed $9,600 and signed a note requiring the customer to pay principal and 6% interest on April 30, 2022.
Required:
1. Record each transaction in general journal form.
2. Prepare any necessary adjusting entries at the year-end on December 31, 2021. No adjusting entries were recorded during the year for any item.

Given Below

Explanation:

Beehive Honey Corporation:

General Journal

Journal Entries

Date                  Particulars                  Debit                Credit

Feb.1.                    Cash                      $ 24,000 Dr.

                                 Notes Payable                          $ 24,000 Cr.

Feb. 1 Borrowed $24,000 from a bank and signed a note. Principal and interest at 8% will be paid on January 31, 2022.

Apr. 1             Prepaid Insurance       6,000 Dr.

                             Cash                                               $ 6000 Cr

Apr. 1 Paid $6,000 to an insurance company for a two-year fire insurance policy.

July 17        Supplies Account        $ 4000  Dr.

                              Accounts Payable                    $ 4000 Cr.

July 17 Purchased supplies costing $4,000 on account. The company records supplies purchased in an asset account.

Nov. 1          Notes Receivable     $ 9,600 Dr.

                             Cash                                         $ 9,600 Cr.

Nov. 1 A customer borrowed $9,600 and signed a note requiring the customer to pay principal and 6% interest on April 30, 2022.

Beehive Honey Corporation:

General Journal

Adjusting Entries December 31st

Sr. No              Particulars                  Debit                Credit

1.                  Interest Expense      $ 1600 Dr.

                             Interest Payable                       $ 1600 Cr.

Interest accrued from Feb to December. ( $ 24000* 8% * 10/12 =  $ 1600)

2.                      Insurance Expense $ 2250 Dr.

                                  Prepaid Insurance                  2250 Cr.

Insurance of $ 2250 expired during April to December. ( $ 3000 *9/12* = $ 2250)

3.                    Supplies Expense $ 2150 Dr.

                           Supplies Account                      $ 2150 Cr.

( $ 4000 - $ 1850= $ 2150)

At the year-end on December 31, 2021, supplies costing $1,850 remained on hand.

4.                    Interest Receivable     $ 192 Dr.

                          Interest Income                            $ 192 Cr.

$9,600 * 6% * 2/6= $ 192 Accrued Interest not yet received.

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.