These are selected transactions of Swifty Company. Swifty prepares financial statements quarterly. Jan. Feb. Mar. Apr. July Sept. Oct. Dec. Dec. Purchased merchandise on account from Nunez Company, $32,000, terms 3/10, n/30. (Swifty uses the perpetual inventory system.) Issued a 9%, 2-month, $32,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Paid face value and interest on Nunez note. Purchased equipment from Marson Equipment paying $12,000 in cash and signing a 10%, 3-month, $60,000 note. Accrued interest for 3 months on Marson note Paid face value and interest on Marson note. 1 Borrowed $19.200 from the Paola Bank by issuing a 3-month, 8% note with a face value of $19,200. 31 Recognized interest expense for 1 month on Paola Bank note. 2 1 31 1 1 30 1

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent Date Account Titles and Explanation Debit Credit
These are selected transactions of Swifty Company. Swifty prepares financial statements quarterly.
Jan.
Feb.
Mar.
Apr.
July
Sept.
Oct.
Dec.
Dec.
Purchased merchandise on account from Nunez Company, $32,000, terms 3/10, n/30. (Swifty
uses the perpetual inventory system.)
Issued a 9%, 2-month, $32,000 note to Nunez in payment of account.
Accrued interest for 2 months on Nunez note.
Paid face value and interest on Nunez note.
Purchased equipment from Marson Equipment paying $12,000 in cash and signing a 10%, 3-month, $60,000 note.
Accrued interest for 3 months on Marson note
Paid face value and interest on Marson note.
1 Borrowed $19.200 from the Paola Bank by issuing a 3-month, 8% note with a face value of $19,200.
31 Recognized interest expense for 1 month on Paola Bank note.
2
1
31
1
1
30
1
Transcribed Image Text:These are selected transactions of Swifty Company. Swifty prepares financial statements quarterly. Jan. Feb. Mar. Apr. July Sept. Oct. Dec. Dec. Purchased merchandise on account from Nunez Company, $32,000, terms 3/10, n/30. (Swifty uses the perpetual inventory system.) Issued a 9%, 2-month, $32,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Paid face value and interest on Nunez note. Purchased equipment from Marson Equipment paying $12,000 in cash and signing a 10%, 3-month, $60,000 note. Accrued interest for 3 months on Marson note Paid face value and interest on Marson note. 1 Borrowed $19.200 from the Paola Bank by issuing a 3-month, 8% note with a face value of $19,200. 31 Recognized interest expense for 1 month on Paola Bank note. 2 1 31 1 1 30 1
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