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2010 Apr. 20 Purchased $49,250 of merchandis...

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2010 Apr. 20 Purchased $49,250 of merchandise on credit from Locust, terms are 1/10, n/30. Montag uses the perpetual inventory system. May 22 Replaced the April 20 account payable to Locust with a 30-day, $36,000 note bearing 6% annual interest along with paying $13,250 in cash. July 12 Borrowed $85,000 cash from National Bank by signing a 60-day, 9.00% interest-bearing note with a face value of $85,000. __?__ Paid the amount due on the note to Locust at the maturity date. __?__ Paid the amount due on the note to National Bank at the maturity date. Nov. 30 Borrowed $46,000 cash from Fargo Bank by signing a 90-day, 8.50% interest-bearing note with a face value of $46,000. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. 2011 ----?-- Paid the amount due on the note to Fargo Bank at the maturity date Problem 9-1A Requirement 4 Requirement 2: Determine the interest expense to be recorded in 2011. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Interest on Fargo note in 2011 $ Requirement 5: Prepare journal entries for all the preceding transactions and events for years 2010 and 2011. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) 2010 Date General Journal Debit Credit Apr. 20 May 22 July 12 Nov. 30 Dec. 31 2011 Date General Journal Debit Credit

 

Paper#9651 | Written in 18-Jul-2015

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