Following are the transactions of PQR Company in year 2019 and 2020: 2019 July 1 October 1 Borrowed $25,000 cash from POL Bank by signing a 7%, 6-month, $25,000 note. Purchased Land from GHI Itd. by signing a 9%, 2-month, $40,000 note. Purchased $60,000 of merchandise on credit from XYZ Itd, terms are n/30. PQR uses the perpetual November 1 inventory system. December 1 Paid the amount due on the note to GHI Itd. at the maturity date. Replaced the account payable of XYZ Itd. with a 10%, 3-month, $60,000 note. December 1 December 31 Accrued interest on the notes payable.. 2020 January 1 March 1 Paid the amount due on the note to POL Bank at the maturity date. Paid the amount due on the note to XYZ Itd. at the maturity date. Question No. 8 Journalize the transactions of year 2019. Question No. 9 Prepare the current liabilities section at December 31, 2019. Also, journalize the transactions of year 2020.

Following are the transactions of PQR Company in year 2019 and 2020: 2019 July 1 October 1 Borrowed $25,000 cash from POL Bank by signing a 7%, 6-month, $25,000 note. Purchased Land from GHI Itd. by signing a 9%, 2-month, $40,000 note. Purchased $60,000 of merchandise on credit from XYZ Itd, terms are n/30. PQR uses the perpetual November 1 inventory system. December 1 Paid the amount due on the note to GHI Itd. at the maturity date. Replaced the account payable of XYZ Itd. with a 10%, 3-month, $60,000 note. December 1 December 31 Accrued interest on the notes payable.. 2020 January 1 March 1 Paid the amount due on the note to POL Bank at the maturity date. Paid the amount due on the note to XYZ Itd. at the maturity date. Question No. 8 Journalize the transactions of year 2019. Question No. 9 Prepare the current liabilities section at December 31, 2019. Also, journalize the transactions of year 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10P

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