a company that has a fiscal year end of december 31 1 on october 1 452467

A company that has a fiscal year end of December 31: (1) on October 1, $30,000 was paid for a one year fire insurance policy; (2) on June 30 the company lent its chief financial officer $28,000; principal and interest at 6% are due in one year; and (3) equipment costing $78,000 was purchased at the beginning of the year for cash.

Prepare journal entries for each of the above transactions. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

• 1. On October 1, $30,000 was paid for a one year fire insurance policy
• 2. On June 30 the company lent its chief financial officer $28,000; principal and interest at 6 are due in one year
• 3. Equipment costing $78,000 was purchased at the beginning of the year for cash.