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Buffalo Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) O Date Account Titles and Explanation Debit Credit

Buffalo Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) O Date Account Titles and Explanation Debit Credit

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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Buffalo Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) O. Date December 31 December 31 Account Titles and Explanation December 31 Interest Expense Discount on Notes Payable Retained Earnings Dividends Payable Dividends Payable Cash Debit 5520 283500 283500 Credit 552 2835C I 2835C
Transcribed Image Text:Buffalo Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) O. Date December 31 December 31 Account Titles and Explanation December 31 Interest Expense Discount on Notes Payable Retained Earnings Dividends Payable Dividends Payable Cash Debit 5520 283500 283500 Credit 552 2835C I 2835C
Described below are certain transactions of Buffalo Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Flint Company for $68,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $48,000 from Crane Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $88,700 from Chicago National Bank by signing a $96,980 zero-interest-bearing note due 1 year from May 1.
Transcribed Image Text:Described below are certain transactions of Buffalo Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Flint Company for $68,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $48,000 from Crane Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $88,700 from Chicago National Bank by signing a $96,980 zero-interest-bearing note due 1 year from May 1.
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