The following are selected transactions of Andreu Company. Andreu prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Diego Company, $30,000, terms 2/10, n/30. (Andreu uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $30,000 note to Diego in payment of account. Mar. 31 Accrued interest for 2 months on Diego note. Apr. 1 Paid face value and interest on Diego note. July 1 Purchased equipment from Garcia Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note. Sept. 30 Accrued interest for 3 months on Garcia note. Oct. 1 Paid face value and interest on Garcia note. Dec. 1 Borrowed $15,000 from the Isova Bank by issuing a 3-month, 8% note with a face value of $15,000. Dec. 31 Recognized interest expense for 1 month on Isova Bank note. Instructions (a) Prepare journal entries for the listed transactions and events.
The following are selected transactions of Andreu Company. Andreu prepares financial statements quarterly.
Jan. 2 Purchased merchandise on account from Diego Company, $30,000, terms 2/10, n/30. (Andreu uses the perpetual inventory system.)
Feb. 1 Issued a 9%, 2-month, $30,000 note to Diego in payment of account.
Mar. 31 Accrued interest for 2 months on Diego note.
Apr. 1 Paid face value and interest on Diego note.
July 1 Purchased equipment from Garcia Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.
Sept. 30 Accrued interest for 3 months on Garcia note.
Oct. 1 Paid face value and interest on Garcia note.
Dec. 1 Borrowed $15,000 from the Isova Bank by issuing a 3-month, 8% note with a face value of $15,000.
Dec. 31 Recognized interest expense for 1 month on Isova Bank note.
Instructions
(a) Prepare
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