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Scenario 2 On 18 Jan, John and Mary purchase $62.50 worth of feeder chickens with the cash they received from the loan. Scenario 3 On 2 Feb, John's father dies, leaving John and Mary $375 as an i

Scenario 2 On 18 Jan, John and Mary purchase $62.50 worth of feeder chickens with the cash they received from the loan. Scenario 3 On 2 Feb, John's father dies, leaving John and Mary $375 as an i

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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Create journal entries for the four scenarios (below). Please provide exceell file if possible.

Scenario 1 On 15 Jan, John and Mary borrow $62.50 to purchase feeder chickens to fatten and sell in the local market. The interest rate is 30%.

Scenario 2 On 18 Jan, John and Mary purchase $62.50 worth of feeder chickens with the cash they received from the loan.

Scenario 3 On 2 Feb, John's father dies, leaving John and Mary $375 as an inheritance. John contributes the money to their farming business.

Scenario 4 On 15 Mar, John and Mary sell their remaining maize to a purchasing agent for $812.50.

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