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.
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.
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July 31: |
Brookside Co. repaid their overdue account receivable by issuing us a $3,000, three-month, 6% note. |
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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. |
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September 30: |
Cage Co. borrowed $8,000 cash from us and issued us a six-month, 8% note. |
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October 31: |
Brookside repaid their note plus interest. |
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December 31: |
Journalized the year-end interest adjustment for the Abbey Ltd. note. |
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December 31: |
Journalized the year-end interest adjustment for the Cage Co. note. |
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February 28: |
Abbey repaid their note plus interest. |
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March 31. |
Cage Co. repaid their note plus interest. |
Instructions
Journalize the above transactions.
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