FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bennett Enterprises issues a $580,000, 45-day, 6% note to Spectrum Industries for merchandise inventory.
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| A. | Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
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| B. | Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
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- Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%. Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.arrow_forwardABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace an accounts receivable. Assuming all necessary adjusting entries were made at year end, December 31, 2020, the entry ABC makes on the maturity date would include a: credit to interest receivable for $540. credit to note receivable for $18,600 credit to interest revenue for $600 A. В. С. D. debit to interest revenue for $60 Е. credit to interest revenue for $720arrow_forwardEntries for Discounting Notes Payable Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. Assume a 360-day year. If an amount box does not require an entry, leave it blank. a. Journalize Ramsey’s entries to record: the issuance of the note. the payment of the note at maturity. 1. fill in the blank e8d3e1f82fcbfe5_2 fill in the blank e8d3e1f82fcbfe5_3 fill in the blank e8d3e1f82fcbfe5_5 fill in the blank e8d3e1f82fcbfe5_6 fill in the blank e8d3e1f82fcbfe5_8 fill in the blank e8d3e1f82fcbfe5_9 2. fill in the blank e8d3e1f82fcbfe5_11 fill in the blank e8d3e1f82fcbfe5_12 fill in the blank e8d3e1f82fcbfe5_14 fill in the blank e8d3e1f82fcbfe5_15 b. Journalize Buckner’s entries to record: the receipt of the note. the receipt of the payment of the note at maturity. 1. fill in the blank 71375d037f88056_2 fill in the blank 71375d037f88056_3 fill in the blank…arrow_forward
- Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?arrow_forwardRamsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.a. Journalize Ramsey’s entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Buckner’s entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.arrow_forward4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the receipt. Account Debit Credit 5. Prepare the journal entry to accrue interest on the above note at 12/31/20. Account Debit Credit 6. Prepare the entry to record payment of the above note in full on it's due date of 5/1/21. Account Debit Credit 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500, painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete the journal entry for the auto purchase. Account Debit Creditarrow_forward
- еВook Print Item Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $331,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $125,900. Note contract terms included a 36-month maturity date, and a 8% annual interest rate. Dec. 31, 2018 Telesco records interest accumulated for 2018. Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 8% interest rate Jan. 1, 2018 To record the cost of sale Dec. 31, 2018 To record interest accumulated in 2018 88 Dec. 31, 2019 To record interest accumulated in 2019 Dec. 31, 2020 Previousarrow_forwardEntries for notes payable Bennett Enterprises issues a $384,000, 45-day, 7%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. 1. fill in the blank fill in the blank fill in the blank fill in the blank 2. fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank b. Journalize Spectrum Industries’ entries to record: the receipt of the note. the receipt of the payment of the note at maturity. 1. fill in the blank fill in the blank fill in the blank fill in the blank 2. fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blankarrow_forwardClark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense A) +4,360 -4,000 +360 +360 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense B) -4,360 -4,000 -360 +360 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense C) +4,060 -4,000 +60 +60 d. BALANCE SHEET INCOME STATEMENT ASSETS =…arrow_forward
- The Chair Company provides a 120-day parts - and - labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $2,650. During the period a customer returned a product that cost $1,830 to repair. Required: a. Show the effects of these transactions on the financial statements using a horizontal statements model. Indicate whether the event increases, decreases, or increases and decreases each element of the financial statements. In the Statement of Cash Flows column, designate the cash flows as operating activities (OA ), investing activities (IA), or financing activities (FA).arrow_forwardJudon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues $ 546,190 Cost of revenues $ 340,275 Inventories as of 31 January 2022 $44,064 Inventories as of 31 January 2021 $41,020 Accounts payable as at 31 January 2022 $58,600 Accounts payable as at 31 January 2021 $51,800 Accounts receivable as at 31 January 2022 $7,482 Accounts receivable as at 31 January 2021 $5,434 Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing?arrow_forwardUse the attachment to answer the following Accounts receivable days outstanding at the end of Year 2 is closest to: a) 30.6 days b) 26.0 days c) 27.0 days d) 6.1 daysarrow_forward
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