CREATE A GENERAL JOURNAL. FOLLOW THE FORMAT.Date Account titles DrCr Oct-01 Cash Common Shares Oct-01 Equipment Bank Loan Payable Oct-02 Rent Expense Cash Oct-05 Prepaid Insurance Cash Oct-09 Supplies Accounts Payable Oct-13 Accounts Receivable Service Revenue Oct-19 Cash Unearned Revenue Oct-22 Accounts Payable Cash Oct-23 Salaries Expense Cash Oct-26 Dividends Cash Oct-30 Cash Accounts Receivable Oct-30 Income Tax Expense Cash DateTransactionOct-01Cash of $10,000 wasinvested in Umbrella Corporation in exchange for 10,000 common shares.Oct-01Umbrella borrowed $5,000 from Scotiabank to purchase equipment.Oct-02Umbrella Corporation paidits office rent for the month of October in $900.Oct-05Umbrella paid $600 for a one-year insurance policy effective October 1 that expires next year on September 30.Oct-09Umbrella purchased advertising supplies on account from Aero Supply Corp. for $2,500.Oct-13Umbrella performed $20,000 of advertising services for Alpha Ltd. Umbrella sent Alpha a bill for these services.Oct-19Umbrella received a $1,200 cash advance from Leon Kennedy, a client, for advertising services.Oct-22Umbrella made a partial payment of $1,000 to Aero Supply Corp. on October 9.Oct-23Employees of Umbrella worked for two weeks, earning $4,000 in salaries and were paid on October 23Oct-26Umbrella paid a $500 cash dividend.Oct-30Alpha Ltd. paid Umbrella $5,000 of the amount owing on its account on October 13.Oct-30Umbrella paid a monthly income tax of $1,800

The journal entries are prepared to record daily transactions of the business.

Answered: Date Transaction Oct-01 Cash of $10,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

See similar textbooks

Similar questions

Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
Reality Corporation borrowed $175,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? Select one: a. $15,750. b. $5,250. c. $21,000. O d. $0.
Liability transactionsThe following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%.15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000…
Subject: accounting On January 1, Year 1, Beatie Company borrowed $270,000 cash from Central Bank by issuing a five-year, 5 percent note. The principal and interest are to be paid by making annual payments in the amount of $62,363. Payments are to be made December 31 of each year, beginning December 31, Year 1. RequiredPrepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.)
Reality Corporation borrowed $175,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? Select one: $5,250. $0. $21,000. $15,750.
On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Balance Sheet Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Multiple Choice Option A Option C Option D Option B Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue Expense = 900 ΝΑ 900 2,700 ΝΑ ΝΑ 2,700 ΝΑ Net Income 900 900 2,700 2,700 Statement of Cash Flows 900 IA ΝΑ 2,700 IA ΝΑ
Liability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for…
Martinez Co. borrowed $60,000 on March 1 of the current year by signing a 60-day, 8%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to journalize the payment should include a a. debit to Interest Payable for $800 Ob. debit to Interest Expense for $800 Oc. credit to Cash for $60,000 C. Od. credit to Cash for $64,800 B
Liability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for…
Liability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store…
Liability Transactions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Feb. 15. Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. Mar. 17. Issued a 60-day, 8% note for $144,000 to Kirkwood Co., on account. May 16. Paid Kirkwood Co. the amount owed on the note of March 17. June 15. Borrowed $135,600 from Triple Creek Bank, issuing a 60-day, 9% note. July 21. Purchased tools by issuing a $87,000, 90-day note to Poulin Co., which discounted the note at the rate of 7%. Aug. 14. Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $135,600. (Journalize both the debit and credit to the notes payable account.) Oct. 13. Paid Triple Creek Bank the amount due on the note of August 14. Oct. 19. Paid Poulin Co. the amount due on the note of July 21. Dec. 1. Purchased office equipment from Greenwood Co. for $144,000,…
Liability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Date	Account titles		Dr	Cr

Oct-01	Cash
		Common Shares

Oct-01	Equipment
		Bank Loan Payable

Oct-02	Rent Expense
		Cash

Oct-05	Prepaid Insurance
		Cash

Oct-09	Supplies
		Accounts Payable

Oct-13	Accounts Receivable
		Service Revenue

Oct-19	Cash
		Unearned Revenue

Oct-22	Accounts Payable
		Cash

Oct-23	Salaries Expense
		Cash

Oct-26	Dividends
		Cash

Oct-30	Cash
		Accounts Receivable

Oct-30	Income Tax Expense
		Cash