A select list of transactions of Namely Company are listed below: Date Transaction Description Issued a $40,000 note to Lake Company in exchange for a machine. Lake discounted the note at 9%. The note is due on October 1, 2022. 3/1/2022 9/1/2022 Purchased merchandise on account from Aspen Co., $12,000. 10/1/2022 Paid Lake Company the amount due on the note of March 1. 11/1/2022 Issued a 3-month, 12% note for $12,000 to Aspen Co. on account. 12/31/2022 Accrued interest on the Aspen Co. note. 2/1/2023 Paid Aspen Co. the amount owed on the note of November 1. Required: Prepare journal entries (journal entry descriptions NOT required) for Namely Company to record the transactions above. If necessary, round all figures to whole dollars. Namely's fiscal year end is December 31st.

A select list of transactions of Namely Company are listed below: Date Transaction Description Issued a $40,000 note to Lake Company in exchange for a machine. Lake discounted the note at 9%. The note is due on October 1, 2022. 3/1/2022 9/1/2022 Purchased merchandise on account from Aspen Co., $12,000. 10/1/2022 Paid Lake Company the amount due on the note of March 1. 11/1/2022 Issued a 3-month, 12% note for $12,000 to Aspen Co. on account. 12/31/2022 Accrued interest on the Aspen Co. note. 2/1/2023 Paid Aspen Co. the amount owed on the note of November 1. Required: Prepare journal entries (journal entry descriptions NOT required) for Namely Company to record the transactions above. If necessary, round all figures to whole dollars. Namely's fiscal year end is December 31st.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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