**Journal Entries for Airflowing Corp. Fiscal Year 2022****Additional Information:**1. Airflowing Corp.'s year-end is December 31.2. Assume straight-line amortization of discounts.3. Airflowing Corp. records all purchases and payables at gross.---**1. February 2, 2022***Transaction:* Airflowing Corp. purchased goods from Vents Inc. for $250,000. Terms were 3/10, n/30.*Journal Entry:*- **Debit:** Inventory $250,000- **Credit:** Accounts Payable $250,000---**2. February 26, 2022***Transaction:* Airflowing Corp. paid Vents Inc. for the February 2, 2022 purchase.*Journal Entry:*- **Debit:** Accounts Payable $250,000- **Credit:** Cash $250,000---**3. June 1, 2022***Transaction:* Airflowing Corp. purchased a truck for $85,000 from Ford Motor Company Fleet Sales Division. Paid $10,000 on purchase date and signed a 1-year, 10% note for the remaining balance.*Journal Entry:*- **Debit:** Vehicles (Truck) $85,000- **Credit:** Cash $10,000- **Credit:** Notes Payable $75,000---**4. July 1, 2022***Transaction:* Airflowing Corp. borrowed from St. Paul National Bank $3,500,000 by signing a $3,700,000 zero-interest bearing note due one year from July 1.*Journal Entry:*- **Debit:** Cash $3,500,000- **Debit:** Discount on Notes Payable $200,000- **Credit:** Notes Payable $3,700,000**Note:** Airflowing Corp.'s CFO has concerns related to cash in the first quarter of 2023.---*Graphs/Diagrams:*No graphical elements are present in this document.

Answered: Prepare the necessary joumal entries…

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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Prepare the necessary joumal entries for the following fiscal year 2022 transactions made by Airflowing Corp. Additional Information: 1 Ai rflowing Corp. year-end is 12/31. 2 Assume straight-line amortization of discounts. 3 Airflowing Corp. records all purchases and payables at gross.