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On January 2, H55 Ltd. sold merchandise on account to R. Michael for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,200. On February 1, R. Michael gave H55 a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, H55's year end, annual adjusting entries were made. On July 1, R. Michael paid the note and any remaining interest. Prepare the journal entries for H55 to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.)

On January 2, H55 Ltd. sold merchandise on account to R. Michael for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,200. On February 1, R. Michael gave H55 a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, H55's year end, annual adjusting entries were made. On July 1, R. Michael paid the note and any remaining interest. Prepare the journal entries for H55 to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 119.

On January 2, H55 Ltd. sold merchandise on account to R. Michael for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,200. On February 1, R. Michael gave H55 a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, H55's year end, annual adjusting entries were made. On July 1, R. Michael paid the note and any remaining interest. Prepare the journal entries for H55 to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Date Jan. 2 Feb. 1 April 30 April 30 April 30 April 30 Account Titles and Explanation Accounts Receivable Sales (To record sales) Notes Receivable Accounts Receivable (To record cost of merchandise sold) Interest Receivable Revenue Cost of Goods Sold Inventory Sales Returns and Allowances Cost of Goods Sold Sales Returns and Allowances Accounts Receivable Debit 51000 10 00 51000 127.50 32200 18800 51000 Credit 51000 51000 127.50 32200 32200 51000
Transcribed Image Text:On January 2, H55 Ltd. sold merchandise on account to R. Michael for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,200. On February 1, R. Michael gave H55 a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, H55's year end, annual adjusting entries were made. On July 1, R. Michael paid the note and any remaining interest. Prepare the journal entries for H55 to record the above transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Date Jan. 2 Feb. 1 April 30 April 30 April 30 April 30 Account Titles and Explanation Accounts Receivable Sales (To record sales) Notes Receivable Accounts Receivable (To record cost of merchandise sold) Interest Receivable Revenue Cost of Goods Sold Inventory Sales Returns and Allowances Cost of Goods Sold Sales Returns and Allowances Accounts Receivable Debit 51000 10 00 51000 127.50 32200 18800 51000 Credit 51000 51000 127.50 32200 32200 51000
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