PLEASE PREPARE GENERAL ENTRIES AND ADJUSTING JOURNAL ENTRIES.
Ans- Journal Entries
Date | Account Title and Explanation | Debit ($) | Credit ($) |
Oct.1 | Merchandise A/c Dr. | 6,800 | |
5% Notes Payable A/c | 6,800 | ||
(To record the issue of notes for purchasing merchandise) | |||
Oct.15 | 6% Notes Receivable A/c Dr. | 2,000 | |
Sales A/c | 2,000 | ||
(To record the sale of merchandise) | |||
Nov.1 | Cash A/c Dr. | 1,860 | |
Discount on Notes Receivable A/c ($2,000*7%) | 140 | ||
6% Notes Receivable A/c | 2,000 | ||
(To record the ensachment of notes from bank) | |||
Nov.1 | Cash A/c Dr. | 4,700 | |
Discount on Notes Payable A/c Dr. ($5,000*6%) | 300 | ||
Notes Payable A/c | 5,000 | ||
(To record the sum borrowed from First National Bank) | |||
Nov.20 | 6.5% Notes Receivable A/c Dr. | 4,000 | |
Accounts Receivable | 4,000 | ||
(To record the notes received) | |||
Nov.30 | 5% Notes Payable A/c Dr. | 6,800 | |
Interest on 5% Notes Payable A/c ($6,800*5%*60/360) | 57 | ||
Cash A/c | 6,857 | ||
(To record the payment made for notes payable with interest) | |||
Dec.10 | Accounts Payable A/c Dr. | 3,000 | |
6% Notes Payable A/c | 3,000 | ||
To record the issue of notes payable) | |||
Dec.16 | 6% Notes Receivable A/c Dr. | 2,000 | |
Bank Fee A/c Dr. | 20 | ||
Bank A/c | 2,020 | ||
(To record the dishonoured of note) |
Adjusting Entries:-
Date | Account Title and Explanation | Debit ($) | Credit ($) |
Dec.31 | Interest Receivable A/c Dr. | 34.61 | |
Interest on 6% Notes Receivable A/c ($2,000*6%*15/360) (from Oct.15 to Nov.1) | 5 | ||
Interest on 6.5% Notes Receivable A/c ($,4000*6.5%*41/360) (from Nov.20 to Dec.31) | 29.61 | ||
(To record the interest receivable) | |||
Dec.31 | Interest on 6% Notes Payable ($3,000*6%*21/360) | 10.5 | |
Interest Payable A/c | 10.5 | ||
(To record the interest payable ) (from Dec.10 to Dec.31) |
PLEASE PREPARE GENERAL ENTRIES AND ADJUSTING JOURNAL ENTRIES. Eddie Edwards and Phil Bell own and operate...
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