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 termsof 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. Theinvoice 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 notedue 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 "NoEntry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do notindent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. List all debit entriesbefore credit entries.)ateAccount Titles and Explanationy2PurchasesAccounts Payablery 26->Accounts Payable(b)Debit7203072030Purchase Discounts Lost1470CASHTrucksCashNotes PayableCash5500086000Discount on Notes Payable8640Notes PayableeTextbook and MediaList of AccountsCredit720307350030005200094640Assistance UsedAttempts: 3 of 5 usedSandhill Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have beenrecorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements atDecember 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enterO for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entriesbefore credit entries.)No. DateAccount Titles and Explanation1.December31December231December3.31DebitCredit

Interest Expense -The income statement includes interest expense as one of its primary expenses.…

Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 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. 2. 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. 3. 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.

Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 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. 2. 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. 3. 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.

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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The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month: The company purchased inventory on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $510 were paid in cash. On October 31, Autumn paid for the inventory purchased on October 12. During October inventory costing $18,150 was sold on account for $28,200. It was determined that inventory on hand at the end of October cost $21,390. 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. The company purchased inventory on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point…
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nces Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $8,500 (that had cost $6,282) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $9,800 (that had cost $6,350) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. Note: Round your answers to the nearest whole dollar amount. View transaction list View journal entry worksheet i No 1 2 3 4 Date April 08 April 08 April 12 April 12 Cash Credit card expense Sales Cost of goods sold Merchandise inventory Cash Credit card expense Sales Cost of goods sold Merchandise inventory General Journal Debit 8,160 340 6,000 9,555 245 6,350 Credit 8,500 6,000 9,800 6,350 Ⓒ
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