Described below are certain transactions of Grouper Corporation. The company uses the periodic inventory system On February 2, the corporation purchased goods from Pina Company for $73,500 subject to cash discount terms of 2/10 w/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. (a) On April 1, the corporation bought a truck for $55,000 from Blossom Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of t purchase price On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94.640 zero-interest-bearing note due 1 year from May 1 Make all the journal entries necessary to record the transactions above using appropriate dates. Of 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 List all debit entries before credit entries. Record journal entries in the order presented in the problem List all debit entries before orbdit mtries) Date 10 Account Titles and Explanation Debit Cr

Described below are certain transactions of Grouper Corporation. The company uses the periodic inventory system On February 2, the corporation purchased goods from Pina Company for $73,500 subject to cash discount terms of 2/10 w/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. (a) On April 1, the corporation bought a truck for $55,000 from Blossom Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of t purchase price On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94.640 zero-interest-bearing note due 1 year from May 1 Make all the journal entries necessary to record the transactions above using appropriate dates. Of 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 List all debit entries before credit entries. Record journal entries in the order presented in the problem List all debit entries before orbdit mtries) Date 10 Account Titles and Explanation Debit Cr

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

See similar textbooks

Similar questions

Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Described below are certain transactions of Cullumber Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $68,100 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 $51,000 from General Motors Company, paying $5,000 in cash and signing a one-year, 10% note for the balance of the purchase price. 1. 2. On May 1, the corporation borrowed $88,600 from Chicago National Bank by signing a $97,720 zero-interest-bearing note due one year from May 1. On August 1, the board of directors declared a $288,800 cash dividend that was payable on September 10 to stockholders of record on August 31. 3. 4.
Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Martinez Company for $73,500 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 $55,000 from Blossom 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 $86,000 from Chicago National Bank by signing a $94,640 zero interest bearing note due 1 year from May 1. (a) Your answer is 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 O for the amounts. Credit account titles are automatically indented when amount is entered.…
Described below are certain transactions of Flint Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $67,500 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. On April 1, the corporation bought a truck for $47,000 from General Motors Company, paying $5,000 in cash and signing a one-year, 10% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $82,400 from Chicago National Bank by signing a $91,040 zero-interest-bearing note due one year from May 1. 4. On August 1, the board of directors declared a $307,900 cash dividend that was payable on September 10 to stockholders of record on August 31. (a) Make all the journal entries necessary to record the transactions above using appropriate dates. (If no…
Current Attempt in Progress Described below are certain transactions of Pharoah Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $68,100 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 1. paid on February 26 On April 1, the corporation bought a truck for $51,000 from General Mators Company, paying $5,000 in cash and signing a one-year, 109% note for the balance of the purchase price. 2. On May 1, the corporation borrowed SBB,600 from Chicago National Bank by signing a $97,720 zero-interest-bearing note due one year from May 1. 3. On August 1, the board of directors declared a $288,800 cash dividend that was payable on September 10 to stockholders of record on August 31. 4. Part 1 Your answer is partially correct. L Make all the journal entries necessary to record the transactions above using…
Transactions of Edwardson Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $70,000 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 brought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due 1 year from May 1 On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions: (A) Make all the journal entries necessary to record the transactions above using appropriate dates. (B) Edwardson Corporations year-end is December 31. Assuming that no…
DONT GIVE ANSWER IN IMAGE FORMAT
On June 21, Marble Company purchased goods from Steel Company for $30,000, terms 2/10, n/30. The invoice was paid on June 27. The company uses a perpetual inventory system and records purchases gross. The June 27 journal entry to record payment of the account would include: Select one: a credit to Cash for $30,000. а. O b. a debit to Accounts Payable for $29,400. O c. a credit to Purchases Discounts for $60O. O d. a credit to Inventory for $600.
Kk.47.