Solution 5:
Journal Entries - Baylee Company | |||
Event | Particulars | Debit | Credit |
a | Inventory Dr | $5,000.00 | |
To Note Payable | $5,000.00 | ||
(To record merchandise purchased by issuing note) | |||
b | Interest expense Dr ($5,000*10%*30/360) | $41.67 | |
To Interest Payable | $41.67 | ||
(To record interest expense accrued) | |||
c | Note Payable Dr | $5,000.00 | |
Interest expense Dr ($5,000*10%*15/360) | $20.83 | ||
Interest payable Dr | $41.67 | ||
To Cash | $5,062.50 | ||
(To record retirement of note on maturity) |
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5. Baylee Company issued a note to a customer for merchandise purchased. It was a 45...
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