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Described below are certain transactions of Ayayai Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $64,600 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. 2. 3. 4. (a) On April 1, the corporation bought a truck for $54,000 from General Motors Company, paying $2,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $79,900 from Chicago National Bank by signing a $88,780 zero-interest-bearing note due one year from May 1. On August 1. the board of directors declared a $305,500 cash dividend that was payable on September 10 to stockholders of record on August 31.

Described below are certain transactions of Ayayai Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $64,600 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. 2. 3. 4. (a) On April 1, the corporation bought a truck for $54,000 from General Motors Company, paying $2,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $79,900 from Chicago National Bank by signing a $88,780 zero-interest-bearing note due one year from May 1. On August 1. the board of directors declared a $305,500 cash dividend that was payable on September 10 to stockholders of record on August 31.

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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Described below are certain transactions of Ayayai Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $64.600 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. 1. 2. 3. 4. (a) On April 1, the corporation bought a truck for $54,000 from General Motors Company, paying $2,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $79,900 from Chicago National Bank by signing a $88,780 zero-interest-bearing note due one year from May 1. On August 1. the board of directors declared a $305,500 cash dividend that was payable on September 10 to stockholders of record on August 31. Your answer is partially correct. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Transcribed Image Text:Described below are certain transactions of Ayayai Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $64.600 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. 1. 2. 3. 4. (a) On April 1, the corporation bought a truck for $54,000 from General Motors Company, paying $2,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $79,900 from Chicago National Bank by signing a $88,780 zero-interest-bearing note due one year from May 1. On August 1. the board of directors declared a $305,500 cash dividend that was payable on September 10 to stockholders of record on August 31. Your answer is partially correct. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
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