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Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required:   Hide     Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.             Feb. 15                 (Record purchase of inventory on credit)             Mar. 31                 (Record issuance of note to cover unpaid account payable)             Sept. 30                         (Record payment of note and interest)

Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required:   Hide     Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.             Feb. 15                 (Record purchase of inventory on credit)             Mar. 31                 (Record issuance of note to cover unpaid account payable)             Sept. 30                         (Record payment of note and interest)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounts and Notes Payable

On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest.

Required:


  Hide    

Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank.



 
 
       
Feb. 15
 
 
 
 
 
 
 
 
(Record purchase of inventory on credit)
   
       
Mar. 31
 
 
 
 
 
 
 
 
(Record issuance of note to cover unpaid account payable)
   
       
Sept. 30
 
 
 
 
 
 
 
 
 
 
 
 
(Record payment of note and interest)
   
       

 

 
 

 

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