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Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are: Year 1: April 1 August 1 December 31 Year 2: January 31 March 31

Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are: Year 1: April 1 August 1 December 31 Year 2: January 31 March 31

FINANCIAL ACCOUNTING
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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Warren Corporation had the following transactions in Year 1: 1. On April 1, Warren received a $30,000, 10 percent note from a customer in settlement of a $30,000 account receivable. According to the terms, the principal and interest on the note are payable at the end of 12 months on March 31. 2. On August 1, to meet a cash shortage, Warren obtained a $20,000, 12 percent loan from a local bank. The principal and interest on the note are payable at the end of six months on January 31. Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are: Year 1: April 1 August 1 December 31 View transaction list Journal entry worksheet < 1 Year 2: January 31 March 31 2 Date Year 1 April 1 3 Note: Enter debits before credits. 4 Record the receipt of the note in settlement of the accounts receivable. 5 6 General Journal Debit Drow Credit 2 of 5 ▬▬ > Next
Transcribed Image Text:Warren Corporation had the following transactions in Year 1: 1. On April 1, Warren received a $30,000, 10 percent note from a customer in settlement of a $30,000 account receivable. According to the terms, the principal and interest on the note are payable at the end of 12 months on March 31. 2. On August 1, to meet a cash shortage, Warren obtained a $20,000, 12 percent loan from a local bank. The principal and interest on the note are payable at the end of six months on January 31. Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are: Year 1: April 1 August 1 December 31 View transaction list Journal entry worksheet < 1 Year 2: January 31 March 31 2 Date Year 1 April 1 3 Note: Enter debits before credits. 4 Record the receipt of the note in settlement of the accounts receivable. 5 6 General Journal Debit Drow Credit 2 of 5 ▬▬ > Next
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