This textbook is available at## College Accounting, Chapters 1-27 (22nd Edition)

Book Edition | 22nd Edition |

Author(s) | Heintz, Parry |

ISBN | 9781305666160 |

Publisher | Cengage |

Subject | Accounting |

Self-Study Demonstration Problem

Self-Study Self-Study Test Questions Multiple Choice

Applying Your Knowledge Review Questions

Applying Your Knowledge - Series A Exercises

Applying Your Knowledge Series A Problems

Applying Your Knowledge - Series B Exercises

Applying Your Knowledge - Series B Problems

Applying Your Knowledge - Managing Your Writing

Challenge Problem

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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