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Described below are certain transactions of Flounder Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Monty Company for $75,400 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 Sheridan Motors Company, paying $5,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $80,700 from Chicago National Bank by signing a $89,820 zero-interest-bearing note due 1 year from May 1. (a) 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 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation February 2 Purchases Accounts Payable February 26 Accounts Payable April 1 May 1 Cash Debit 75400

Described below are certain transactions of Flounder Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Monty Company for $75,400 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 Sheridan Motors Company, paying $5,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $80,700 from Chicago National Bank by signing a $89,820 zero-interest-bearing note due 1 year from May 1. (a) 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 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation February 2 Purchases Accounts Payable February 26 Accounts Payable April 1 May 1 Cash Debit 75400

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 1COMP: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account...
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Described below are certain transactions of Flounder Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Monty Company for $75,400 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 Sheridan Motors Company, paying $5,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $80,700 from Chicago National Bank by signing a $89,820 zero-interest-bearing note due 1 year from May 1. (a) 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 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation February 2 Purchases Accounts Payable February 26 Accounts Payable April 1 May 1 Cash Debit 75400
Transcribed Image Text:Described below are certain transactions of Flounder Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Monty Company for $75,400 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 Sheridan Motors Company, paying $5,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $80,700 from Chicago National Bank by signing a $89,820 zero-interest-bearing note due 1 year from May 1. (a) 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 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation February 2 Purchases Accounts Payable February 26 Accounts Payable April 1 May 1 Cash Debit 75400
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