The following transactions of Plymouth Pharmacies occurred during 2017 and 2018: 2017 Jan. 9 Purchased computer equipment at a cost of $12,000, signing a six-month, 9% note payable for that amount. Recorded the week's sales of $63,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. 29 Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 9% note, plus interest, at maturity. Purchased merchandise inventory for $9,000, signing a six-month, 10% note payable. The company uses the perpetual inventory system. Aug. 31 Dec. 31 Accrued warranty expense, which is estimated at 4% of sales of $609,000. 31 Accrued interest on all outstanding notes payable. 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity.

The following transactions of Plymouth Pharmacies occurred during 2017 and 2018: 2017 Jan. 9 Purchased computer equipment at a cost of $12,000, signing a six-month, 9% note payable for that amount. Recorded the week's sales of $63,000, three-fourths on credit and one- fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. 29 Feb. 5 Sent the last week's sales tax to the state. Jul. 9 Paid the six-month, 9% note, plus interest, at maturity. Purchased merchandise inventory for $9,000, signing a six-month, 10% note payable. The company uses the perpetual inventory system. Aug. 31 Dec. 31 Accrued warranty expense, which is estimated at 4% of sales of $609,000. 31 Accrued interest on all outstanding notes payable. 2018 Feb. 28 Paid the six-month 10% note, plus interest, at maturity.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.1AP

See similar textbooks

Similar questions

Required information Exercise 9-24 (Algo) Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Debit $13,000 Credit Accounts Receivable 37,600 Allowance for Uncollectible Accounts $ 3,600 Inventory Land Buildings 153,800 85,300 138,000 Accumulated Depreciation 11,400 Accounts Payable 37,500 Common Stock 218,000 Retained Earnings 157,200 Totals $ 427,700 $ 427,700 During January 2024, the following transactions occur: January 1 Borrow $118,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,281 are required at the end of each month for 60 months. January 4 January 10 Pay cash on accounts payable, $29,000. Receive $32,800 from customers on accounts receivable. January 15 Pay cash for salaries, $30,700.…
P10-1 Journal Entries for Accounts and Notes Payable Logan Company had the following transactions: Apr 8 Issued a $5,000, 60-day, six percent note payable in payment of an account with Bennett Company May 15 Borrowed $40, 000 from Lincoln Bank, signing a 60-day note at nine percent. June 7 Paid Bennett Company the principal and interest due on the April 8 note payable. July 6 Purchased $12, 000 of merchandise from Bolton Company; signed at 90-day note with ten percent interest. July 14 Paid the the May 15 note due Lincoln Bank. Oct. 2 Borrowed $30, 000 from Lincoln Bank, signing a 120-day note at 12 percent. 4 Defaulted on the note payable to Bolton Company. Required Record these transactions in general journal form. Record any adjusting entries for interest in general form. Logan Company has a December 31 year -end.
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this note.
Required information Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Debit $ 11,700 35,000 152,500 72,300 125,000 Accounts Credit Cash Accounts Receivable Inventory Land Buildings $ 2,300 10, 100 23, 200 205,000 155,900 Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $396,500 $396,500 During January 2021, the following transactions occur: Borrow $105, 000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments Receive $31, 500 from customers on accounts receivable. January $2,030 are required at the end of ead onth for 6e months. January 4 January Pay cash on accounts payable, $16,000. 10 January Pay cash for salaries, $29,400. 15 January…
Hide or show questions Progress:11/32 items On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true? a.Wilson is the creditor and debits Accounts Receivable b.Rodriguez is the borrower and debits Accounts Payable c.Rodriguez is the creditor and credits Accounts Receivable d.Wilson is the borrower and credits Accounts Payable
E10-4A Adjusting Entries for Interest The following note transactions occurred during the first year for Towell Company: Nov 25 Towell issued a 60-day, nine percent note payable for $80,000 to Hyatt company for merchandise Dec 7 Towell signed a 120-day, $15,000 note at the bank at ten percent. 22 Towell gave Barr, Inc., a $12, 000, eight percent, 60-day note in payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31.
Problem 7: Purple Company showed the following balances on December 31, 2019: 2,000,000 (60,000) Accounts receivable Allowance for doubtful accounts The following transactions transpired during the year 2020: a. On May 1, received a P300,000, six month, 12% interest bearing note from MN, a customer, in settlement of account. b. On June 30, Purple Company factored P400,000, of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amounts factored. c. On August 1, discounted the MN note at the bank at 15%. d. On November 1, MN defaulted on the P300,000 note. Purple Company paid the bank the total amount due plus a P12,000. protest fee and other bank charges. e. On December 31, Purple Company assigned P600,000 of its accounts receivable to a bank under a non-notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. Purple Company signed a promissory note for the…
11. Record journal entries for the following transactions of Telesco Enterprises. Jan 1, 2018 Issued a $330,700 note to customer Abe Willis as tems of a merchandise sale. The merchandise's cost to Telesco is $120,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Dec. 31, 2018 Telesco records interest accumulated for 2018. Dec. 31, 2019 Dec. 31, 2020 Telesco records interest accumulated for 2019. Abe Willis honors the note and pays in full with cash.
E10-3A Accrued Interest Payable Compute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31: Lender Date of Note Principal Interest Rate Term Maple 11/21 $18,000 11% 120 day Wyman 12/13 14,000 8 90 days Nahn 12/10 16,000 12 60 days
11. Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $120,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Dec. 31, 2018 Telesco records interest accumulated for 2018. Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 | Abe Willis honors the note and pays in full with cash.
1) Remaining VAT accounts of our company as of the end of January 2021 are as follows. 191 Deductible VAT = 10.000 TL Debt Remaining 391 Calculated VAT = 8.000 TL Credit Remainder Record the journal (daily book) regarding VAT offset.