**Splish Corporation Transactions Overview**The company uses a periodic inventory system. Below are detailed descriptions of certain financial transactions:1. **February 2**: Splish Corporation purchased goods from Martin Company worth $67,500 with cash discount terms of 2/10, n/30. This means the corporation can take a 2% discount if payment is made within 10 days; otherwise, the net amount is due in 30 days. The corporation records purchases and accounts payable at net amounts after cash discounts. The invoice was paid on February 26.2. **April 1**: The corporation acquired a truck for $47,000 from General Motors Company. An initial payment of $5,000 was made in cash, and the remaining balance was covered by signing a one-year, 10% interest note.3. **May 1**: Splish Corporation borrowed $82,400 from Chicago National Bank by signing a $91,040 zero-interest-bearing note, which is due one year from the signing date.4. **August 1**: The board of directors declared a cash dividend of $307,900. This dividend was payable on September 10 to stockholders who were recorded on August 31.These transactions demonstrate the corporation's financial activities, including purchasing, financing, and profit distribution strategies. Understanding such transactions is crucial for analyzing the financial health and operational decisions within a corporation. The image shows a template for entering journal entries, commonly used in accounting. Here is the detailed transcription and description:### Instructions:"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 the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)"### Journal Entry Template:- **Columns:** - **Date:** Dropdown menu to select the transaction date. - **Account Titles and Explanation:** Text field to enter the account name and description of the transaction. - **Debit:** Field to enter the debit amount. - **Credit:** Field to enter the credit amount.The table includes multiple rows for you to input various transactions, each requiring the date, relevant account titles with explanation, and the corresponding debit and credit amounts. The design ensures all necessary information for financial recording is captured systematically. This template is suitable for educational purposes, helping learners understand the mechanics of recording financial transactions in accounting.

For example, 2/10, n/30 means that if payment is made during 10 days from the invoice date then a…

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

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

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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