The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $40,000 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July 1 Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600. Dec. 31 Recognized interest expense for 1 month on Paola Bank note. 1.Prepare journal entries for the listed transactions and even
The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $40,000 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July 1 Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600. Dec. 31 Recognized interest expense for 1 month on Paola Bank note. 1.Prepare journal entries for the listed transactions and even
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 3PB
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The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly.
Jan. | 2 | Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.) | ||
Feb. | 1 | Issued a 9%, 2-month, $40,000 note to Nunez in payment of account. | ||
Mar. | 31 | Accrued interest for 2 months on Nunez note. | ||
Apr. | 1 | Paid face value and interest on Nunez note. | ||
July | 1 | Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note. | ||
Sept. | 30 | Accrued interest for 3 months on Marson note. | ||
Oct. | 1 | Paid face value and interest on Marson note. | ||
Dec. | 1 | Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600. | ||
Dec. | 31 | Recognized interest expense for 1 month on Paola Bank note. |
1.Prepare
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