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Accounts and Notes Payable Described below are certain transactions of Lamar Company for 2014: On May 10, the company purchased goods from Fox...

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Accounts and Notes Payable Described below are certain transacTons of Lamar Company for 2014: 1. On May 10, the company purchased goods from Fox Company for $100,000, term Purchases and accounts payable are recorded at net amounts. ±he invoice was paid 2. On June 1, the company purchased equipment for $90,000 from Rao Company, p in cash and giving a one-year, 5% note for the balance. 3. On September 30, the company discounted at 10% its $200,000, one-year zero-in note at Virginia State Bank. InstrucTons (a) Prepare the journal entries necessary to record the transacTons above using app dates. (b) Prepare the adjusTng entries necessary at December 31, 2014 in order to prope interest expense related to the above transacTons. Assume straight-line amorTzaTo (c) Indicate the manner in which the above transacTons should be re²ected in the C LiabiliTes secTon of Lamar Company's December 31, 2014 balance sheet.
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ms 2/10, n/30. on May 18. paying $30,000 interest-bearing propriate erly report on of discounts. Current Premiums Kane Candy Company o³ers a co³ee mug as a premium for every ten presented by customers together with $2. ±he purchase price of each $1.80; in addiTon it costs $1.20 to mail each mug. ±he results of the p years 2014 and 2015 are as follows (assume all purchases and sales ar 2014 2015 Co³ee mugs purchased 720,000 800,000 Candy bars sold 5,600,000 6,750,000 Wrappers redeemed 2,800,000 4,200,000 2014 wrappers expected to be redeemed in 2015 2,000,000 2015 wrappers expected to be redeemed in 2016 2,700,000 InstrucTons (a) Prepare the general journal entries that should be made in 2014 a above plan by Kane Candy. (b) Indicate the account names, amounts, and classi´caTons of the it premium plan that would appear on the Kane Candy Company balanc statement at the end of 2014 and 2015.
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Chapter 13.docx

Chapter 13
Accounts and Notes Payable
(a) May 10, 2014

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