Described below are certain transactions of Indigo Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $65,600 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. 1. 2. 3. 4. On April 1, the corporation bought a truck for $53,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 10% note for the balance of the purchase price. On May 1, the corporation borrowed $79,400 from Chicago National Bank by signing a $88,040 zero-interest-bearing note due one year from May 1. On August 1, the board of directors declared a $324,800 cash dividend that was payable on September 10 to stockholders of record on August 31,

Described below are certain transactions of Indigo Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $65,600 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. 1. 2. 3. 4. On April 1, the corporation bought a truck for $53,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 10% note for the balance of the purchase price. On May 1, the corporation borrowed $79,400 from Chicago National Bank by signing a $88,040 zero-interest-bearing note due one year from May 1. On August 1, the board of directors declared a $324,800 cash dividend that was payable on September 10 to stockholders of record on August 31,

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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Current Attempt in Progress Described below are certain transactions of Pharoah 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 1. paid on February 26 On April 1, the corporation bought a truck for $51,000 from General Mators Company, paying $5,000 in cash and signing a one-year, 109% note for the balance of the purchase price. 2. On May 1, the corporation borrowed SBB,600 from Chicago National Bank by signing a $97,720 zero-interest-bearing note due one year from May 1. 3. 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. 4. Part 1 Your answer is partially correct. L Make all the journal entries necessary to record the transactions above using…
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $70,000 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. 2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due 1 year from May 1. 4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions a. Make all the journal entries necessary to record the transactions above using appropriate dates. b. Edwardson…
Transactions of Edwardson Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $70,000 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 brought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due 1 year from May 1 On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions: (A) Make all the journal entries necessary to record the transactions above using appropriate dates. (B) Edwardson Corporations year-end is December 31. Assuming that no…
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