The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly.Jan. 2 Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.)Feb. 1 Issued a 9%, 2-month, $40,000 note to Nunez in payment of account.Mar. 31 Accrued interest for 2 months on Nunez note.Apr. 1 Paid face value and interest on Nunez note.July 1 Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note.Sept. 30 Accrued interest for 3 months on Marson note.Oct. 1 Paid face value and interest on Marson note.Dec. 1 Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600.Dec. 31 Recognized interest expense for 1 month on Paola Bank note.1.Prepare journal entries for the listed transactions and even

Name: The following are selected transactions of Vaughn Company. Vaughn prep
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Description: The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly.Jan. 2 Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.)Feb. 1 Issue

Date Account title and explanation Debit ($) Credit ($) Jan. 2 Merchandise inventory $40,000…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly.

Jan.	2	Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.)
Feb.	1	Issued a 9%, 2-month, $40,000 note to Nunez in payment of account.
Mar.	31	Accrued interest for 2 months on Nunez note.
Apr.	1	Paid face value and interest on Nunez note.
July	1	Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note.
Sept.	30	Accrued interest for 3 months on Marson note.
Oct.	1	Paid face value and interest on Marson note.
Dec.	1	Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600.
Dec.	31	Recognized interest expense for 1 month on Paola Bank note.

1.Prepare journal entries for the listed transactions and even

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