Mar. 2 3 Sold inventory for cash totalling $35,000, plus 13 % HST. The cost of goods sold was $24,000. Crane uses a perpetual inventory system. 4 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10,000. Interest is due at maturity. 12 Received the property tax bill of $16,000 for the calendar year. It is payable on May 31. (Hint: No accrual has been recorded during the year.) Provided services for customers worth $10,000 plus HST of 13%. The company received payment in full for services and HST.
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- Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.On August 1, Batson Company issued a 60-day note with a face amount of $91,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations. a. Determine the proceeds of the note assuming the note carries an interest rate of 12%. b. Determine the proceeds of the note assuming the note is discounted at 12%.On August 1, Batson Company issued a 60-day note with a face amount of $47,400 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12%.fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 12%.fill in the blank 2
- FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and principal of P850,000 on October 1, 2021. How much should be recorded as interest expense for the year ended December 31, 2021?Roger Company completed the following transactions during Year 1. Roger’s fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,780; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $54,000 from National Bank for general use; signed a 12-month, 10% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,420. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger’s buildings to another company and collected six months’ rent in advance amounting to $6,000. Dec. 20 Received a $180 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. 31 Determined wages of $9,200 were earned but not yet paid on December 31 (disregard payroll taxes). Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31.…The following is sample list of the Speiran Company's transactions completed during 2019. The company's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,720; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $72,000 from Lowell Bank for general use; signed a 12-month, 8% annual interest-bearing note for the money. May 1 Rented office space in one of Speiran Company's buildings to another company and collected six months' rent in advance amounting to $27,000. Required: 1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,860; assume 17 Paid January 8 invoice. Apr. 1 Borrowed $35,000 from National Bank for general use; signed a 12-month, 8% annual interest-bearing note for the a perpetual inventory system. money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,420. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $6,000. Dec.20 Received a $100 deposit from a customer as 31 Determined wages of $9,500 were earned but not yet paid on December 31 (disregard payroll taxes). a guarantee to return a trailer borrowed for 30 days. Required: 1. For each transaction (including adjusting entries on December 31), indicate the effects (e.g., Cash + or -), using the following schedule: (Indicate the…Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. January 8 Purchased merchandise for resale on account. The invoice amount was $14,840; assume a perpetual inventory system. Paid January 8 invoice. Borrowed $60,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing note for the money. Purchased merchandise for resale on account. The invoice amount was $17,320. Paid June 3 invoice. Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $21,000. December 20 Received a $240 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. December 31 Determined wages of $10,400 were earned but not yet paid on December 31 (disregard payroll taxes). Required: January 17 April 1 June 3 July 5 August 1 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. 3. Show…The following transactions of San Francisco Marine Supply occurred during 2018 and 2019: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in the company's journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest whole dollar.) ..... Begin by journalizing the 2018 transactions, starting with the purchase of equipment on February 3. Feb 3: Purchased equipment for $20,000, signing a six-month, 6% note payable. Journal Entry Date Accounts Debit Credit Feb 3, 2018 Feb 28: Recorded the week's sales of $55,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sales tax. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit Feb 28, 2018 More Info 2018 Feb 3 Purchased equipment for $20,000, signing a six-month, 6% note payable. Mar 7: Sent last week's sales tax to the state. 28 Recorded the week's sales of $55,000,…