On January 1, 2020, Cookie Company prepares financial statements annually. During the year the following selected transactions occurred. (Cookie Company uses a periodic inventory system.) Jan. 1 Sold $5,000,000, 8%, 10-year bonds on January 1, 2010 at 95. Interest will be paid annually. Feb. 18 Sold $5,000 of merchandise to Zheng Company and accepted Zheng’s $5,000, 6- month, 10% note for the amount due. May 1 Issued a $20,000 2-month note for the purchase of merchandise. The note bears 6% interest and is due July 1. May 31 Recorded accrued interest in 1/5. June 31 Recorded accrued interest in 1/5. July 1 Paid principal and interest on the purchase of merchandise in 1/5 Aug. 18 Received payment in full from Zheng Company on note due. Instructions - Journalize the transactions - Posting to Ledger
On January 1, 2020, Cookie Company prepares financial statements annually. During the year the following selected transactions occurred. (Cookie Company uses a periodic inventory system.)
Jan. 1 Sold $5,000,000, 8%, 10-year bonds on January 1, 2010 at 95. Interest will be paid annually.
Feb. 18 Sold $5,000 of merchandise to Zheng Company and accepted Zheng’s $5,000, 6- month, 10% note for the amount due.
May 1 Issued a $20,000 2-month note for the purchase of merchandise. The note bears 6% interest and is due July 1.
May 31 Recorded accrued interest in 1/5. June 31 Recorded accrued interest in 1/5.
July 1 Paid principal and interest on the purchase of merchandise in 1/5 Aug. 18 Received payment in full from Zheng Company on note due.
Instructions
- Journalize the transactions
- Posting to Ledger
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