The following transactions were carried out by Columbia Outfitting. Columbia has a December 31 year-end. You can round off interest to the nearest full month. July 31: Brookside Co. repaid their overdue account receivable by issuing us a $3,000, three-month, 6% note. August 31: Abbey Ltd. purchased merchandise for $4,500 and signed a 6 month, 8% note in payment. Our cost for the merchandise was $3,200. September 30: Cage Co. borrowed $8,000 cash from us and issued us a six-month, 8% note. October 31: Brookside repaid their note plus interest. December 31: Journalized the year-end interest adjustment for the Abbey Ltd. note. December 31: Journalized the year-end interest adjustment for the Cage Co. note. February 28: Abbey repaid their note plus interest. March 31. Cage Co. repaid their note plus interest. Instructions Journalize the above transactions.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 5. 

The following transactions were carried out by Columbia Outfitting. Columbia has a December 31 year-end. You can round off interest to the nearest full month.

July 31:

Brookside Co. repaid their overdue account receivable by issuing us a $3,000, three-month, 6% note.

August 31:

Abbey Ltd. purchased merchandise for $4,500 and signed a 6 month, 8% note in payment. Our cost for the merchandise was $3,200.

September 30:

Cage Co. borrowed $8,000 cash from us and issued us a six-month, 8% note.

October 31:

Brookside repaid their note plus interest.

December 31:

Journalized the year-end interest adjustment for the Abbey Ltd. note.

December 31:

Journalized the year-end interest adjustment for the Cage Co. note.

February 28:

Abbey repaid their note plus interest.

March 31.

Cage Co. repaid their note plus interest.

Instructions

Journalize the above transactions.

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