Tanwir commenced his business on 1 October 20X9, with capital in the bank of $20,000. During his first month of trading, his transactions were as follows. 1 October Purchase inventories for $3,500 on credit from A Jones 3 October Paid $1,200 rental of premises, by cheque 5 October Paid $5,000 for office equipment, by cheque 10 October Sold goods costing $1,000 for $1,750, on credit to P Duncan 15 October Returned inventories costing $500 to A Jones 18 October Purchased inventories for $2,400 on credit from A Jones 25 October Paid A Jones for the net purchases of 1 October, by cheque 28 October P Duncan paid $500 on account, by cheque The balance on the account of A Jones at 31 October 20X9 was $ ........................................

Northwest Sales had the following transactions in Year 1: The business was started when it acquired $58,500 cash from the issue of common stock. Northwest purchased $185,000 of merchandise for cash in Year 1. During the year, the company sold merchandise for $198,220. The merchandise cost $109,021. Sales were made under the following terms: a. Cash sales $48,870b. Credit card sales (The credit card company charges a $2.25  percent service fee.) $139,520c. Sales on account $9,830 The company collected all the amount receivable from the credit card company. The company collected $9,044 of accounts receivable. The company paid $40,927 cash for selling and administrative expenses. Determined that 3.75 percent of the ending accounts receivable balance would be uncollectible. Required Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model. Use + for increase, − for decrease, and leave blank for not affected. In the…

The following items were selected from among the transactions completed by Shin Co. during the current year: Jan. 10 Purchased merchandise on account from Beckham Co., $420,000, terms n/30. Feb. 9 Issued a 30-day, 6% note for $420,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. June 1 Purchased tools by issuing a $312,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 5%.   15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $240,000. (Journalize both the debit and credit to the notes payable account.) July 30 Paid Verity Bank the amount due on the note of June 15.   30 Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1 Purchased office equipment from Lambert Co. for $700,500 paying $160,500 and issuing a series of ten 5% notes for $54,000…

The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar 1. Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. Mar 31. Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr 30. Paid Kirkwood Co. the amount owed on the note of March 31. June 1. Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. July 1. Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate of 7% July 16. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6% note for $400,000. (Journalize both the debit and credit to the notes payable account.) Aug 15. Paid Triple Creek Bank the amount due on the note of July 16. Aug 30. Paid Poulin Co. the amount due on the note of July 1. Dec 1. Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series of ten 9% notes for $22,000…

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On November 1, Lee Corporation borrowed 10,000 by signing a six-month 5% bank loan payable. On this date, hiw should the corporation have recorded this transaction in its accounting records?

The following items were selected from among the transactions completed by O’Donnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30. Feb. 9. Issued a 30-day, 4% note for $240,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $160,000 from Tabata Bank, issuing a 45-day, 5% note. June 1. Purchased tools by issuing a $180,000, 60-day note to Gibala Co., which discounted the note at the rate of 5%.   15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $160,000. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15.   30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $400,000, paying $100,000 and issuing a series of ten 5% notes for $30,000 each,…

The following items were selected from among the transactions completed by O’Donnel Co. during the current year:Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30.Feb. 9. Issued a 30-day, 4% note for $240,000 to Laine Co., on account.Mar. 11. Paid Laine Co. the amount owed on the note of February 9.May 1. Borrowed $160,000 from Tabata Bank, issuing a 45-day, 5% note.June 1. Purchased tools by issuing a $180,000, 60-day note to Gibala Co., which discounted the note at the rate of 5%.15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $160,000. (Journalize both the debit and credit to the notes payable account.)July 30. Paid Tabata Bank the amount due on the note of June 15.30. Paid Gibala Co. the amount due on the note of June 1.Dec. 1. Purchased office equipment from Warick Co. for $400,000, paying $100,000 and issuing a series of ten 5% notes for $30,000 each, coming due at 30-day…

The following items were selected from among the transactions completed by O'Donnel Co. during the current year: Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30. Issued a 30-day, 4% note for $240,000 to Laine Co., on account. Feb. 9. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $160,000 from Tabata Bank, issuing a 45-day, 5% note. June 1. Purchased tools by issuing a $180,000, 60-day note to Gibala Co., which discounted the note at the rate of 5%. 15. Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $160,000. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Tabata Bank the amount due on the note of June 15. 30. Paid Gibala Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Warick Co. for $400,000, paying $100,000 and issuing a series of ten 5% notes for $30,000 each, coming due at 30-day…

Journal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $15,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $18,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $14,400, 45 day, ten percent note from C. Judd on account. Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore’s account as uncollectible. Lancaster, Inc., uses the allowance method   of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off   during this first year have created a debit balance in the Allowance for Doubtful Accounts of   $22,600. An analysis of aged receivables indicates that the desired balance of the   allowance account should be $19,500. Dec.31 Made the…