A company experienced the following financial events on Sept. 29, Year 1. How many of these economic events would require a journal entry on that day?

1. The company signed a new contract with an employees’ union that requires a $2.00 per hour increase in wages and a longer lunch break, effective 10/1/Y1.
2. The company president is retiring and will be replaced by the vice president of finance who will be paid $50,000 more per year.
3. The company purchased a fire insurance policy for $5,000 that will pay $1,000,000 if the facility is destroyed. The policy insures the company from 11/1/Y1 - 10/31/Y2

1. One
2. Two
3. Three
4. None