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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do
not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit

Transcribed Image Text:Described below are certain transactions of Cullumber Corporation. The company uses the periodic inventory system.
On February 2, the corporation purchased goods from Martin Company for $68,100 subject to cash discount terms
of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The
invoice was paid on February 26.
On April 1, the corporation bought a truck for $51,000 from General Motors Company, paying $5,000 in cash and signing a
one-year, 10% note for the balance of the purchase price.
1.
2.
On May 1, the corporation borrowed $88,600 from Chicago National Bank by signing a $97,720 zero-interest-bearing
note due one year from May 1.
On August 1, the board of directors declared a $288,800 cash dividend that was payable on September 10 to stockholders
of record on August 31.
3.
4.
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