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Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required:   Hide     Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.             Feb. 15                 (Record purchase of inventory on credit)             Mar. 31                 (Record issuance of note to cover unpaid account payable)             Sept. 30                         (Record payment of note and interest)

Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required:   Hide     Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.             Feb. 15                 (Record purchase of inventory on credit)             Mar. 31                 (Record issuance of note to cover unpaid account payable)             Sept. 30                         (Record payment of note and interest)

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
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Accounts and Notes Payable

On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest.

Required:


  Hide    

Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.



 
 
       
Feb. 15
 
 
 
 
 
 
 
 
(Record purchase of inventory on credit)
   
       
Mar. 31
 
 
 
 
 
 
 
 
(Record issuance of note to cover unpaid account payable)
   
       
Sept. 30
 
 
 
 
 
 
 
 
 
 
 
 
(Record payment of note and interest)
   
       

 

 
 

 

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