17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: a) Prepare journal entries for the above transactions and events. b) Show the Balance Sheet presentation of notes and interest payable at December 31.
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: a) Prepare journal entries for the above transactions and events. b) Show the Balance Sheet presentation of notes and interest payable at December 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
Related questions
Question
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018.
Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30.
Feb1. Issued a 8%, 2 month, $60,000 note in payment of account.
Mar31 Accrued interest for 2 months on Yokum note.
Apr1 Paid face value and interest on Yokum note.
July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note.
Sept.30 Accrued interest for 2 months on Korsak note.
Oct.1 Paid face value and interest on Korsak note.
Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000
Dec. 31 Recognized interest expense for 1 month on Otago Bank note.
Instructions:
a) Prepare journal entries for the above transactions and events.
b) Show the Balance Sheet presentation of notes and interest payable at December 31.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning