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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.
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.
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