Corporate Financial Accounting Chapter 10

Corporate Financial Accounting Chapter 10 - Purchased Merch...

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Corporate Financial Accounting Chapter 10 Ex 2 A1 Accounts Payable 250000.00 Notes Payable 250000.00 A2 Notes Payable 250000.00 Interest Payable 3125.00 Cash 253125.00 B1 Notes Receivable 250000.00 Accounts Receivable 250000.00 B2 Cash 253125.00 Interest Receivable 3125.00 Notes Receivable 250000.00 Ex 20 A Product Warranty Expense 1700.00 Product Warranty Payable 1700.00 To record warranty expense for January,  2%*$85,000.00 B Product Warranty Payable 345.00 Supplies 210.00 Wage Payable 135.00 Replaced defective part under warranty
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April 7 Cash 36,000.00 Notes Payable 36,000.00 Issued a 60-day,8% Note to the bank May 10 Accounts Payable 125,000.0 0 Notes Payable 125,000.0 0 June 6 Notes Payable 36,000.00 Interest expense 480.00 Cash 480.00 Paid interest due on Note of April 7 Cash 36,000.00 Notes Payable 36,000.00 Renewed loan for 30-day, 9% Note to bank July 6 Notes Payable 36,000.00 Interest Payable 270.00 Cash 36,270.00 Paid principal and interest due on note (April  7). Aug 3 Merchandise inventory 15,000.00 Accounts payable 15,000.00
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Unformatted text preview: Purchased Merch. On account, $15,000.00, n/30 Sep 2 Accounts payable 15,000.00 Notes payable 15,000.00 Issued a 60-day, 6% note for $15,000 Sep 7 Notes payable 250,000.0 Interest payable 2,500.00 Cash 252,500.0 Paid principle and interest due on note (May 10). Nov 1 Notes payable 15,000.00 Interest payable 150.00 Cash 15,150.00 Paid principle and interest due on note (Sep 2) Nov 15 Cash 55,000.00 Merchandise inventory 95,000.00 Accounts payable 150,000.0 Dec 15 Notes payable 95,000.00 Interest payable 13,500.00 Cash 108,500.0 Paid principle and interest due on note (Nov 15) Dec 21 Personal injury lawsuit expense 30,000.00 Litigation payable account 30.000.00 Lawsuit to be paid in January Dec 31 Product warranty expense 8,400.00 Product warranty payable 8,400.00 Dec 31 Interest expense 81,000.00 Notes payable 95,000.00 Accounts receivable 176,000.0...
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Corporate Financial Accounting Chapter 10 - Purchased Merch...

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