Question

Described below are certain transactions of Whispering Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $68,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $48,000 from General Motors Company, paying $3,000 in cash and signing a one-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $88,700 from Chicago National Bank by signing a $96,980 zero-interest-bearing note due one year from May 1. 4. On August 1, the board of directors declared a $283,500 cash dividend that was payable on September 10 to stockholders of record on August 31.

(a) Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date February 2February 26April 1May 1August 1September 10 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Answer 1

Solution Date Particulars Debit Gudit feb 02 | 66640 Merchandese Inventory Dr To Accounts payable [68000 - [68000 X 0.02]] 66640 feb 26 66640 Accounts payable ale Dr purchase Discount Lost alcoy To Cash 1360 68000 Aprol Truck ale or 48000 To cash 3000 To 12% Note payable 45000 Dec 31 4050 Interest expense ale or To Interest payable C45000 x12% 91127 4050 May of 96980 Dec 34 cash ale Dr 88700 Discount on Notes payable Dr. 8280 To Note payable Interest expense ale Dr | 5520 To Discount on Notes payable [8280X8112] Retalned earning ale or 783500 To sevedends payable 5520 Aug o 283500 Sep lo Dividend payable al DNI 283500 To cash 283500