Crane and Company had the following (selected) transactions during 2020: Important Note: Crane records adjusting entries annually on December 31. April 1 Borrowed $15,000 from the First National Bank by signing a 60 day, 8% note. Repayment/Maturity date is May 31. May 2 Purchased supplies for $750 on account. Credit terms are n/20. May 10 Shipped merchandise and billed customers $17,064 which included 8% sales tax. (Ignore COGS/Inventory) May 21 Paid amount due on supplies purchased on May 2. May 31 Repaid note (and interest) to First National Bank. Nov 1 Borrowed $20,000 from First National bank by signing a 90 day, 9% note. Repayment/Maturity date is January 31, 2020. November 3 Collected $9,000 in cash from a customer (Tech Works) representing an advance on services to be performed in December and January. November 15 Paid the state government $4, 200 of sales taxes billed and collected in October. December 31 It was determined that 50% of the services have been completed to Tech Works (see Nov 3 advance) December 31 Recorded adjusting entry related to November I Note.
Crane and Company had the following (selected) transactions during 2020: Important Note: Crane records adjusting entries annually on December 31. April 1 Borrowed $15,000 from the First National Bank by signing a 60 day, 8% note. Repayment/Maturity date is May 31. May 2 Purchased supplies for $750 on account. Credit terms are n/20. May 10 Shipped merchandise and billed customers $17,064 which included 8% sales tax. (Ignore COGS/Inventory) May 21 Paid amount due on supplies purchased on May 2. May 31 Repaid note (and interest) to First National Bank. Nov 1 Borrowed $20,000 from First National bank by signing a 90 day, 9% note. Repayment/Maturity date is January 31, 2020. November 3 Collected $9,000 in cash from a customer (Tech Works) representing an advance on services to be performed in December and January. November 15 Paid the state government $4, 200 of sales taxes billed and collected in October. December 31 It was determined that 50% of the services have been completed to Tech Works (see Nov 3 advance) December 31 Recorded adjusting entry related to November I Note.
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 9.6AP
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Transcribed Image Text:11/15
12/31
12/31
Transcribed Image Text:Problem 1
Crane and Company had the following (selected) transactions during 2020: Important Note: Crane
records adjusting entries annually on December 31.
April 1 Borrowed $15,000 from the First National Bank by signing a 60 day, 8% note.
Repayment/Maturity date is May 31.
May 2 Purchased supplies for $750 on account. Credit terms are n/20.
May 10 Shipped merchandise and billed customers $17,064 which included 8% sales tax. (Ignore
COGS/Inventory)
May 21 Paid amount due on supplies purchased on May 2.
May 31 Repaid note (and interest) to First National Bank.
Nov 1 Borrowed $20,000 from First National bank by signing a 90 day, 9% note. Repayment/Maturity
date is January 31, 2020.
November 3 Collected $9,000 in cash from a customer (Tech Works) representing an advance on
services to be performed in December and January.
November 15 Paid the state government $4, 200 of sales taxes billed and collected in October.
December 31 It was determined that 50% of the services have been completed to Tech Works (see Nov 3
advance)
December 31 Recorded adjusting entry related to November 1 Note.
ccessibility: Good to go
Date
4/1
5/2
5/10
5/21
5/31
11/1
112
Titles
Debit
Credit
Focus
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