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GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terma n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. Borrowed $95,000 cash from NMR Bank by signing a 120-day, 6%, $96,000 note payable. amount due on the note to Griffin at the maturity date. July 8 August 17 Paid the November 5 Paid the amount due on the note to NMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 8%, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Year 2 January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement General Journal Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. < Calculation of Interest Calculation of Interest Debit Year 2 payment Credit Yer Z payment

GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terma n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. Borrowed $95,000 cash from NMR Bank by signing a 120-day, 6%, $96,000 note payable. amount due on the note to Griffin at the maturity date. July 8 August 17 Paid the November 5 Paid the amount due on the note to NMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 8%, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Year 2 January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement General Journal Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. < Calculation of Interest Calculation of Interest Debit Year 2 payment Credit Yer Z payment

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
Problem 1MP
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GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terms n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. July Borrowed $96,000 cash from MMR Bank by signing a 120-day, 6t, $96,000 note payable. August 17 Paid the amount due on the note to driffin at the maturity date. November 5 Paid the amount due on the note to MMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 81, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement General Journal Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. Calculation of Interest Calculation of Interest Year Z payment Prev 1 of 1 Next MacBook Air
Transcribed Image Text:GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terms n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. July Borrowed $96,000 cash from MMR Bank by signing a 120-day, 6t, $96,000 note payable. August 17 Paid the amount due on the note to driffin at the maturity date. November 5 Paid the amount due on the note to MMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 81, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement General Journal Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. Calculation of Interest Calculation of Interest Year Z payment Prev 1 of 1 Next MacBook Air
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