Presented below are two independent situations. (a) On April 2, Jennifer Elston uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $800 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on JCPenney Co.'s books related to the transactions that occurred on April 2, May 3, and June 1. (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 Date Account Titles and Explanation July 4 (b) On July 4, Novak Restaurant accepts a Visa card for a $500 dinner bill. Visa charges a 2% service fee. Prepare the entry on Novak books related to this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Debit Credit Credit

Presented below are two independent situations. (a) On April 2, Jennifer Elston uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $800 on the balance due on May 3. Elston receives a bill dated June 1 for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on JCPenney Co.'s books related to the transactions that occurred on April 2, May 3, and June 1. (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 Date Account Titles and Explanation July 4 (b) On July 4, Novak Restaurant accepts a Visa card for a $500 dinner bill. Visa charges a 2% service fee. Prepare the entry on Novak books related to this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Debit Credit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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