ACC 11 - Notes - Chapter 11

ACC 11 - Notes - Chapter 11 - Accounts Payable Accounts...

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Unformatted text preview: Accounts Payable Accounts payable are amounts owed to suppliers for products or services purchased on open account. Inventory .................. 600 Accounts Payable ...... 600 Purchased inventory on account. Accounts Payable ........... 400 Cash .................. 400 Paid on account. Short-Term Notes Payable Short-term notes payable are a common form of financing used for purchasing inventory or for borrowing cash and must be paid within one year. Sep. 30 Inventory .................. 8,000 Note Payable .......... 8,000 Purchased inventory on a 1-year, 10% note. Dec. 31 Interest Expense (3 months) 200 Interest Payable ...... 200 Accrued interest expense at end of year. Sep. 30 Note Payable ............... 8,000 Interest Payable ........... 200 Interest Expense (9 months) 600 Cash .................. 8,600 Paid a note and interest at maturity. Short-Term Notes Payable (at Discount) Nov. 25 Cash ($100,000 - $2,000) .. 98,000 Note Payable ......... 98,000 Discounted a $100,000, 60-day, 12% note. Discounted a $100,000, 60-day, 12% note....
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This note was uploaded on 11/10/2009 for the course ACC 111 taught by Professor Unknown during the Spring '04 term at Luzerne County Community College.

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ACC 11 - Notes - Chapter 11 - Accounts Payable Accounts...

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