Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one year, 9% note for the balance. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 1. 2. one- 3.
Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one year, 9% note for the balance. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 1. 2. one- 3.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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![Described below are certain transactions of Pharoah Company for 2021:
On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts
payable are recorded at net amounts. The invoice was paid on May 18.
1.
On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one-
year, 9% note for the balance.
2.
On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State
Bank, receiving $198,000.
3.
(a)
Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic
inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record
journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
>
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc1576e9-c849-48ce-8450-6aba7a1020f2%2F28e954c3-1f31-4ad0-bc30-2947d6845d9b%2Fmdca3dm_processed.png&w=3840&q=75)
Transcribed Image Text:Described below are certain transactions of Pharoah Company for 2021:
On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts
payable are recorded at net amounts. The invoice was paid on May 18.
1.
On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one-
year, 9% note for the balance.
2.
On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State
Bank, receiving $198,000.
3.
(a)
Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic
inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record
journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
>
>
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