Prepare the journal entries for the following transactions: May 1 Sold $150,000 of goods to Georgia Co. on account. May 30 Collected $30,000 from Georgia Co. June 1 Accepted a $120,000, one-year, 10% note from Georgia Co. for the amount remaining on the account. July 30 After 60 days, discounted the note from Georgia Co. at First National Bank at a 12% interest rate. Required: Prepare the journal entries for the transactions listed. Assume a 360 day year.
Prepare the journal entries for the following transactions: May 1 Sold $150,000 of goods to Georgia Co. on account. May 30 Collected $30,000 from Georgia Co. June 1 Accepted a $120,000, one-year, 10% note from Georgia Co. for the amount remaining on the account. July 30 After 60 days, discounted the note from Georgia Co. at First National Bank at a 12% interest rate. Required: Prepare the journal entries for the transactions listed. Assume a 360 day year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the journal entries for the following transactions:
| May 1 | Sold $150,000 of goods to Georgia Co. on account. |
| May 30 | Collected $30,000 from Georgia Co. |
| June 1 | Accepted a $120,000, one-year, 10% note from Georgia Co. for the amount remaining on the account. |
| July 30 | After 60 days, discounted the note from Georgia Co. at First National Bank at a 12% interest rate. |
| Required: | |
| Prepare the journal entries for the transactions listed. Assume a 360 day year. |
Transcribed Image Text:PAGE 10
GENERAL JOURNAL
DATE
ACCOUNT TITLE
POST. REF.
DEBIT
CREDIT
2
3
4
6
7
8
9
10
1.
Transcribed Image Text:General Ledger
ASSETS
REVENUE
111 Cash
411 Sales
121 Accounts Receivable
412 Interest Revenue
123 Notes Receivable
141 Inventory
EXPENSES
152 Prepaid Insurance
500 Cost of Goods Sold
181 Equipment
511 Insurance Expense
198 Accumulated Depreciation
512 Utilities Expense
521 Salaries Expense
LIABILITIES
532 Bad Debt Expense
211 Accounts Payable
540 Interest Expense
221 Notes Payable
541 Depreciation Expense
231 Salaries Payable
559 Miscellaneous Expense
250 Unearned Revenue
601 Loss on Sale of Receivable
261 Income Taxes Payable
910 Income Tax Expense
EQUITY
311 Common Stock
331 Retained Earnings
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