Make the corresponding journal entries to report short-term liabilities. Make the journal entries. Make the adjusting entries for each expense accrued at the end of the year. The cost of the product warranty is $7,000. a. Journalizes the remaining interest
Make the corresponding
- Make the journal entries.
- Make the
adjusting entries for each expense accrued at the end of the year. The cost of the product warranty is $7,000. a. Journalizes the remaining interest on the Home Depot account.
Date |
Transaction |
2 February |
Merchandise was purchased on credit for $310,000 with a term of n/45 at Pueblo Caribe. |
4 March |
Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit. |
6 May |
Air Caribe provided a 5% note for $120,000 to Pueblo Caribe with a term of 30 days on credit. |
10 May |
Consoles were purchased from Aire al Mayor for $75,000 on a 90-day note with a 4% discount. With payments of 25,000 per month. |
12 June |
Borrowed (short term note/note payable) 30 days at 3% for $240,000 from Banco del Pueblo. |
15 June |
The past due amount of the May 10 transaction was paid. A customer purchased $2,000 of merchandise in cash. |
18 July |
The customer who purchased merchandise on the 15th returned $500 in merchandise because it was defective. A customer made a purchase of $3,500 with a term of 3/40 n/60. |
20 August |
The customer who made the purchase on July 18 paid in full of the appropriate discount. |
30 September |
The past due amount of the June 12 Bank City note was paid. |
30 September |
The overdue amount of the May 10 transaction was paid. |
4 November |
Purchased tools from Home Depot for $75,000. $12,000 was paid and the remainder was divided into series of ten in 3% notes of $6,300 each due at 45-day intervals. |
4 December |
Home Depot was paid the first of the notes taken out on November 4. |
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