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, terma n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. Borrowed $95,000 cash from NMR Bank by signing a 120-day, 6%, $96,000 note payable. amount due on the note to Griffin at the maturity date. July 8 August 17 Paid the November 5 Paid the amount due on the note to NMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 8%, $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 Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. < Calculation of Interest Calculation of Interest Debit Year 2 payment Credit Yer Z payment
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, terma n/30. May 19 Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying $6,750 in cash. Borrowed $95,000 cash from NMR Bank by signing a 120-day, 6%, $96,000 note payable. amount due on the note to Griffin at the maturity date. July 8 August 17 Paid the November 5 Paid the amount due on the note to NMR Bank at the maturity date. November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 8%, $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 Date 1/27/Year 2 General Ledger Trial Balance Account title Schedule of Payables Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does NOT prepare reversing entries. < Calculation of Interest Calculation of Interest Debit Year 2 payment Credit Yer Z payment
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.
Question
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
Replaced the April 20 account payable to Griffin with a 90-day, 12%, $36,000 note payable along with paying
$6,750 in cash.
July Borrowed $96,000 cash from MMR Bank by signing a 120-day, 6t, $96,000 note payable.
August 17 Paid the amount due on the note to driffin at the maturity date.
November 5 Paid the amount due on the note to MMR Bank at the maturity date.
November 28 Borrowed $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.
January 27 Paid the amount due on the note to Austin Bank at the maturity date.
Requirement
General
Journal
Date
1/27/Year 2
General
Ledger
Trial Balance
Account title
Schedule of
Payables
Prepare the January 27, Year 2 journal entry to record the payment of the Austin note at maturity. Lewis Company does
NOT prepare reversing entries.
Calculation of Interest
Calculation of
Interest
Year Z
payment
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