The following are selected 2020 transactions of Crane Corporation. Sept. Purchased inventory from Encino Company on account for $46,800 Crane records purchases gross and uses a periodic 1 inventory system Issued a $46,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Oct. 1 (a) Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note. Your answer is correct. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.)
The following are selected 2020 transactions of Crane Corporation. Sept. Purchased inventory from Encino Company on account for $46,800 Crane records purchases gross and uses a periodic 1 inventory system Issued a $46,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Oct. 1 (a) Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note. Your answer is correct. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:The following are selected 2020 transactions of Crane Corporation.
Sept. Purchased inventory from Encino Company on account for $46,800. Crane records purchases gross and uses a periodic
inventory system.
1
Issued a $46,800, 12-month, 8% note to Encino in payment of account.
Oct.
1
Oct.
1
(a)
ite
Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O
for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the
order displayed in the problem statement.)
Account Titles and Explanation
ber 1
Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note.
r1
Your answer is correct.
Purchases
Accounts Payable
Accounts Payable
Notes Payable
Cash
Discount on Notes Payable
Notes Payable
Debit
46,800
46,800
46,800
3120
Credit
46.800
46,800
49921

Transcribed Image Text:Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts.
Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g.
5,125.)
Date Account Titles and Explanation
December
31
December
31
(To record interest on the note)
(To record discount on the note)
Debit
Credit
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education