City Graphics has the following notes payable transactions.July 5Issued a $3,500 note to Roma Ceramic Inc. The 10%, 60-day note is in full payment of an account payable.July 9 Borrowed $5,000 from the bank signing a 6%, 90-day note.July 11 Paid $500 cash and issued a $2,000, 8% 30-day note to Design Center in payment of an account payable.Aug. 5 Borrowed $3,600 for 30 days from the bank on a non-interest-bearing note. The discount rate is 10%.Sept. 3 Paid the principal and interest due on the $3,500 note to Roma Ceramic Inc.Oct. 3 Paid the interest due on the $5,000 note to the bank and renewed the principal for 30 days at 7%.Required:Record these transactions in a general journal. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Page: 1POST.DATEDESCRIPTIONDEBIT CREDITREF.1July 51.2July 9345July 11678Aug. 589101011 Sept. 3111212131314 Oct. 3141515161617173.4.

Journal entry is recording of the transactions of the business in the books of accounts of the…

Answered: City Graphics has the following notes…

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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Question

City Graphics has the following notes payable transactions.

July 5	Issued a $3,500 note to Roma Ceramic Inc. The 10%, 60-day note is in full payment of an account payable.
July 9	Borrowed $5,000 from the bank signing a 6%, 90-day note.
July 11	Paid $500 cash and issued a $2,000, 8% 30-day note to Design Center in payment of an account payable.
Aug. 5	Borrowed $3,600 for 30 days from the bank on a non-interest-bearing note. The discount rate is 10%.
Sept. 3	Paid the principal and interest due on the $3,500 note to Roma Ceramic Inc.
Oct. 3	Paid the interest due on the $5,000 note to the bank and renewed the principal for 30 days at 7%.

Required:

Record these transactions in a general journal. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.

Page: 1
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1
July 5
1.
2
July 9
3
4
5
July 11
6
7
8
Aug. 5
8
9
10
10
11 Sept. 3
11
12
12
13
13
14 Oct. 3
14
15
15
16
16
17
17
3.
4.

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