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College Accounting, Chapters 1-27 22nd Edition

College Accounting, Chapters 1-27 (22nd Edition)

Book Edition22nd Edition
Author(s)Heintz, Parry
Chapter 17, End of Chapter, Self-Study Demonstration Problem, Exercise 1
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Barbar Brothers, partners in a wholesale hardware business, completed the following transactions involving notes and interest during the first half of 20--: 

Jan. 11 Received a $900, 60-day, 7% note from Paul Heinsius in payment for sale of merchandise.
18 Borrowed $10,000 from Landmark Bank issuing a 90-day, 8% note.
Feb. 6 Received an $875, 30-day, 6% note from Ana Fuentes in payment of an account receivable.
21 Issued a $650, 60-day, 7% note to Swanson & Johnson, a supplier, in payment of an account payable.
Mar. 1 Received a $1, 000, 90-day, 7.5% note from Steve Roberts, a customer, in payment of an account receivable.
8 Received a check for $879.38 from Ana Fuentes in payment of note due March 8, including interest.
12 Paul Heinsius dishonored his $900 note due March 12.
31 Discounted the $1,000 note from Steve Roberts at Manchester Bank at a discount rate of 8%.
Apr. 11 Paul Heinsius paid the original maturity value of his note due March 12, plus interest at 7% on the maturity value for the 30 days from March 12 to April 11.
18 Paid Landmark Bank for $10,000 note due today, including interest. (See January 18 transaction.)
22 Paid Swanson & Johnson $57.58 on the note due today (interest of $7.58 plus $50 toward the principal), and issued a new $600, 60-day, 7% note.
May 31 Steve Roberts dishonored his $1,000 note due at the Manchester Bank yesterday. Paid Manchester Bank $1,000, plus interest, plus a $15 bank fee, for the dishonored note.
June 20 Issued a $750, 90-day, 7% note to Greene Acres, a supplier, for purchase of merchandise.

Record each transaction in a general journal.

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