Question

Prepare the journal entries necessary to record the transactions above using appropriate data.

Question 3 View Policies Current Attempt in Progress Described below are certain transactions of Lamar Company for 2018: 1. On May 10, the company purchased goods from Fox Company for $78,100, terms 2/10, 1/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $85.200 from Rao Company, paying $31,200 in cash and giving a one year, 9% note for the balance. 3. On September 30, the company discounted at 11Xits $220.000, one year zero-interest bearing note at Virginia State Bank, receiving $198.000.

Answer 1

Solution:

Journal Entries - Lamar Company
Date	Particulars	Debit	Credit
10-May	Inventory	$76,538.00
	To Accounts Payable		$76,538.00
	(To record purchases)
10-May	Accounts payable Dr	$76,538.00
	To Cash		$76,538.00
	(To record payments to supplier)
1-Jun	Equipment Dr	$85,200.00
	To Cash		$31,200.00
	To Notes Payable		$54,000.00
	(To record purchase of equipment)
30-Sep	Cash Dr	$198,000.00
	Interest expense Dr	$22,000.00
	To Notes receivables		$220,000.00
	(Being note discount at bank)