Described below are certain transactions of Teal Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Sandhill Company for $75,800 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 $50,000 from Sunland Motors Company, paying $5,000 in cash and signing a 1 year, 10% note for the balance of the purchase price. On May 1, the corporation borrowed $86,600 from Chicago National Bank by signing a $96,200 zero-interest-bearing note due 1 year from May 1
Described below are certain transactions of Teal Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Sandhill Company for $75,800 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 $50,000 from Sunland Motors Company, paying $5,000 in cash and signing a 1 year, 10% note for the balance of the purchase price. On May 1, the corporation borrowed $86,600 from Chicago National Bank by signing a $96,200 zero-interest-bearing note due 1 year from May 1
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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