Module 3 Week 3 - [Type text] [Type text] Module 3.1 Part A...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
[Type text] [Type text] Module 3.1 Part A – Question – 1 Rascal Corporation sold $9,000 worth of merchandise to Flat Farms Inc. The terms of the sale allow Flat Farms to pay within 25 days from the date of purchase. Prepare the journal entry Rascal Corporation would make on the date of sale. Account Type Debit Credit Accounts Receivable $9,000 Sales Revenue $9,000 The company generated an account receivable because Flat Farms now owes them money. The company also recognized the sales revenue which increased the period’s net income. Module 3.1 Part A – Question 2 Cooper Corporation has a savings account at the National Bank of New York. Upon a receipt of their monthly bank statement, Cooper learned that during the month of November their account earned interest of $206. The interest is not reflected in their cash balance per books. Prepare the required journal entry to capture the monthly interest earned. Account Type
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Module 3 Week 3 - [Type text] [Type text] Module 3.1 Part A...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online