The current liabilities section of the December 31, 2023, balance sheet of Blossom Company included notes payable o interest payable of $780. The note payable was issued to Tanner Company on June 30, 2023. Interest of 6% is payable March 31, 2024. The following selected transactions occurred in the year ended December 31, 2024: Jan. 12 31 Feb. 29 Mar. 31 Purchased merchandise on account from McCoy Company for $49,200, terms n/30. Blossom uses a pe inventory system. Issued a $49,200, three-month, 6% note to McCoy Company in payment of its account. Interest is paya Paid interest on the McCoy note (see January 31 transaction). Paid the Tanner note, plus interest.
The current liabilities section of the December 31, 2023, balance sheet of Blossom Company included notes payable o interest payable of $780. The note payable was issued to Tanner Company on June 30, 2023. Interest of 6% is payable March 31, 2024. The following selected transactions occurred in the year ended December 31, 2024: Jan. 12 31 Feb. 29 Mar. 31 Purchased merchandise on account from McCoy Company for $49,200, terms n/30. Blossom uses a pe inventory system. Issued a $49,200, three-month, 6% note to McCoy Company in payment of its account. Interest is paya Paid interest on the McCoy note (see January 31 transaction). Paid the Tanner note, plus interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:The current liabilities section of the December 31, 2023, balance sheet of Blossom Company included notes payable of $26,000 and
interest payable of $780. The note payable was issued to Tanner Company on June 30, 2023. Interest of 6% is payable at maturity,
March 31, 2024.
The following selected transactions occurred in the year ended December 31, 2024:
Jan. 12
31
Feb. 29
Mar. 31
31
Apr. 30
Aug. 1
Sept. 30
Dec. 31
Purchased merchandise on account from McCoy Company for $49,200, terms n/30. Blossom uses a perpetual
inventory system.
Issued a $49,200, three-month, 6% note to McCoy Company in payment of its account. Interest is payable monthly.
Paid interest on the McCoy note (see January 31 transaction).
Paid the Tanner note, plus interest.
Paid interest on the McCoy note (see January 31 transaction).
Paid the McCoy note, plus one month's interest (see January 31 transaction).
Purchased equipment from Drouin Equipment by paying $23,000 cash and signing a $42,000, 10-month, 8% note.
Interest is payable at maturity.
Borrowed $172,000 cash from the First Interprovincial Bank by signing a 10-year, 6% note payable. Interest is
payable quarterly on December 31, March 31, June 30, and September 30. Of the principal, $17,200 must be paid
each September 30.
Paid interest on the First Interprovincial Bank note (see September 30 transaction).
Transcribed Image Text:-k
Show the balance sheet presentation of notes payable and interest payable at December 31, 2024.
Current Liabilities
Notes Payable
Interest Payable
Current Portion of Notes Payable
Total Current Liabilities
Long-Term Liabilities
(Partial) Income Statement
Notes Payable
Less :
BLOSSOM COMPANY
(Partial) Balance Sheet
December 31, 2024
$
LA
V
$
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