1. Journalize the following accrued Expense transactions:
a. XYZ Company purchased a one-year insurance policy on August 1, 2012 and paid $280,000 cash to MetLife insurance company. Journalize the insurance transactions on the following dates:
August 1, 2012
December 31, 2012
July 31, 2013
b. ABC Co. borrowed $420,000 at 6% rate on June 1, 2012 payable in 12 months, and signing a note payable (N/P). Journalize on: Jun 1, 2012, December 31, 2012 and may 31, 2013.
c. Office Supplies inventory account of VCX Co. had a beginning balance of $72,000 on January 1, 2013. During 2013 the VCX Company purchased $450,000 of supplies. The ending supplies inventory of 2013 is $88,000 on December 31, 2013.
Determine the cost of supplies in 2013 and journalize purchase and use of supplies transactions on December 31, 2013.