Question

MERCHANDISING ACOUNTING Joe Blink an his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. July 1 Joe and Paul each invest $70,000 cash in a new partnership Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 Purchased used truck from Carter for $8,000, paying $3,000 cash and the balance On account. Sold merchandise that cost $3,500 to Rivera's Co. for $9,000 under credit terms of 2/10, n/60 FOB shipping point, Invoice dated July 2, subject to a 9% sales tax. Received $9,054 in advance for merchandise to take place on July 12. Bink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing account payable to Carter. Paid $125 cash for freight charges on the purchase of July 1 4. Paid $2,800 cash on one-year insurance policy effective July 1. Bink's issued a $150,000, 4-year, 12% note at face value to Forest Hills Bank and received $150,000 cash. The note requires annual interest payments each December 31. 5. Bink's pays the note plus interest to Carter. (July 3) Bink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days.