Journal Entries for Accounts and Notes Payable Simon Company had the following transactions:
Journal Entries for Accounts and Notes Payable Simon Company had the following transactions:
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section: Chapter Questions
Problem 3AP
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Question
Simon Company had the following transactions:
Apr. | 15 | Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. |
May | 22 | Borrowed $45,000 from Sinclair Bank, signing a 60-day note at nine percent. |
Jun. | 14 | Paid Marion Company the principal and interest due on the April 15 note payable. |
Jul. | 13 | Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with ten percent interest. |
Jul. | 21 | Paid the May 22 note due Sinclair Bank. |
Oct. | 2 | Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. |
Oct. | 11 | Defaulted on the note payable to Sharp Company. |
Required
a. Record these transactions in general journal form.
b. Record any
Round answers to nearest dollar. Use 360 days for interest calculations.
a.
General Journal | |||
---|---|---|---|
Date | Description | Debit | Credit |
Apr.15 | |||
Issued a 60-day, 8 percent note payable in payment of an account payable. | |||
May 22 | |||
Borrowed from bank for 60 days at 9 percent. | |||
Jun.14 | |||
Interest Expense | |||
Paid note payable to Marion Company. | |||
Jul.13 | |||
Purchased merchandise and issued a note payablewith interest at 10 percent for 90 days. | |||
Jul.21 | |||
Interest Expense | |||
Paid note payable to Sinclair Bank. | |||
Oct.2 | |||
Borrowed from bank for 120 days at 12 percent. |
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