The following are selected 2019 transactions of Kelly Company a. October 1: Purchased inventory from Sid Corporation on account $100,000. Kelly records purchases gross and uses a periodic system. b. November 1: Issued a $60,000 6-month 10% note to Sid in payment of account. c. November 1: Borrowed $80,000 from FB Bank by signing a 15 month, zero interest bearing $110,000 note. Required: 1. Prepare the journal entries for the transactions above. 2. Prepare the adjusting entries as at December 2019
The following are selected 2019 transactions of Kelly Company a. October 1: Purchased inventory from Sid Corporation on account $100,000. Kelly records purchases gross and uses a periodic system. b. November 1: Issued a $60,000 6-month 10% note to Sid in payment of account. c. November 1: Borrowed $80,000 from FB Bank by signing a 15 month, zero interest bearing $110,000 note. Required: 1. Prepare the journal entries for the transactions above. 2. Prepare the adjusting entries as at December 2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are selected 2019 transactions of Kelly Company
a. October 1: Purchased inventory from Sid
Corporation on account $100,000. Kelly records purchases gross and uses a periodic system.
b. November 1: Issued a $60,000 6-month 10% note to Sid in payment of account.
c. November 1: Borrowed $80,000 from FB
Bank by signing a 15 month, zero interest bearing $110,000 note.
Required:
1. Prepare the journal entries for the transactions above.
2. Prepare the adjusting entries as at December
2019
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