GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terms n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 128, $36,000 note payable along with paying $6,750 in cash. July 8 Borrowed $96,000 cash from MR Bank by signing a 120-day, 58, 596,000 note payable. August 17 Paid the amount due on the note to Griffin at the maturity date. amount due on the note to NMR Bank at the maturity date. November 5 Paid the November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 88, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Year 2 January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement View transaction list General Journal < Journal entry worksheet 1 Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. Date April 20 General Ledger 2 Note: Enter debits before credits. Record entry 3 4 Trial Balance 5 April 20. Purchased $42,750 of merchandise on credit from Griffin, terms n/30. Account Title 6 Clear entry 7 Schedule of Payables < Requirement Calculation of Interest Debit Credit View general journal Year 2 payment General Ledger > >
GL901 (Algo)-Based on Problem 09-1A LO P1 The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed. Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $42,750 of merchandise on credit from Griffin, terms n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 128, $36,000 note payable along with paying $6,750 in cash. July 8 Borrowed $96,000 cash from MR Bank by signing a 120-day, 58, 596,000 note payable. August 17 Paid the amount due on the note to Griffin at the maturity date. amount due on the note to NMR Bank at the maturity date. November 5 Paid the November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 88, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Year 2 January 27 Paid the amount due on the note to Austin Bank at the maturity date. Requirement View transaction list General Journal < Journal entry worksheet 1 Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. Date April 20 General Ledger 2 Note: Enter debits before credits. Record entry 3 4 Trial Balance 5 April 20. Purchased $42,750 of merchandise on credit from Griffin, terms n/30. Account Title 6 Clear entry 7 Schedule of Payables < Requirement Calculation of Interest Debit Credit View general journal Year 2 payment General Ledger > >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:GL901 (Algo) - Based on Problem 09-1A LO P1
The January 1, Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed.
Carter Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.)
Year 1
April 20 Purchased $42,750 of merchandise on credit from Griffin, terms n/30.
May 19
$6,750 in cash.
Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying
July 8 Borrowed $96,000 cash from MMR Bank by signing a 120-day, 6%, $96,000 note payable.
August 17 Paid the amount due on the note to Griffin at the maturity date.
November 5 Paid the amount due on the note to MMR Bank at the maturity date.
November 28 Borroved $57,000 cash from Austin Bank by signing a 60-day, 81, $57,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank.
Year 2
January 27 Paid the amount due on the note to Austin Bank at the maturity date.
Requirement
General
Journal
View transaction list
Journal entry worksheet
April 20
General
Ledger
accuracy of your entries.
Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the
2
Record entry
Trial Balance
Clear entry
7
April 20. Purchased $42,750 of merchandise on credit from Griffin, terms n/30.
Schedule of
Payables
< Requirement
Calculation of
Interest
Debit
Credit
Một
View general journal
Year Z
payment
General Ledger >
Bure
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