Journal Entries for Accounts and Notes Payable Geary Company had the following transactions: Apr. 15 Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. May 22 Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. Jun. 14 Paid Marion Company the principal and interest due on the April 15 note payable. Jul. 13 Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. Jul. 21 Paid the May 22 note due Sinclair Bank. Oct. 2 Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. Oct. 11 Defaulted on the note payable to Sharp Company. Required a. Record these transactions in general journal form. b. Record any adjusting entries for interest in general journal form. Geary Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.
Journal Entries for Accounts and Notes Payable Geary Company had the following transactions: Apr. 15 Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. May 22 Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. Jun. 14 Paid Marion Company the principal and interest due on the April 15 note payable. Jul. 13 Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. Jul. 21 Paid the May 22 note due Sinclair Bank. Oct. 2 Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. Oct. 11 Defaulted on the note payable to Sharp Company. Required a. Record these transactions in general journal form. b. Record any adjusting entries for interest in general journal form. Geary Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
CHP#10_3
Geary Company had the following transactions:
| Apr. | 15 | Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. |
| May | 22 | Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. |
| Jun. | 14 | Paid Marion Company the principal and interest due on the April 15 note payable. |
| Jul. | 13 | Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. |
| Jul. | 21 | Paid the May 22 note due Sinclair Bank. |
| Oct. | 2 | Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. |
| Oct. | 11 | Defaulted on the note payable to Sharp Company. |
Required
a. Record these transactions in general journal form.
b. Record any
Round answers to nearest dollar. Use 360 days for interest calculations.
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