Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 10, Problem 10.1APR
Liability transactions
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
| Mar. | 1. | Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. |
| 31. | Issued a 30-day, 6% note for $ 175,000 to Kirkwood Co., on account. | |
| Apr. | 30. | Paid Kirkwood Co. the amount owed on the note of March 31. |
| June | 1. | Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. |
| July | 1. | Purchased tools by issuing a $45,000,60-day note to Poulin Co., which discounted the note at the rate of 7%. |
| 16. | Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6% note for $400,000. (Journalize both the debit and credit to the notes payable account.) | |
| Aug. | 15. | Paid Triple Creek Bank the amount due on the note of July 16. |
| 30. | Paid Poulin Co. the amount due on the note of July 1. | |
| Dec. | 1. | Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series of ten 9% notes for $22,000 each, coming due at 30-day intervals. |
| 22. | Settled a product liability lawsuit with a customer for $50,000, payable in January. Accrued the loss in a litigation claims payable account. | |
| 31. | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
Instructions
1. Journalize the transactions.
2. Journalize the
A. Product warranty cost, $80,000.
B. Interest on the nine remaining notes owed to Greenwood Co.
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Purchased merchandise on account from Beckham Co., $144,000, terms n/30.
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The following items were selected from among the transactions completed by Shin Co. during the current year:
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Purchased merchandise on account from Beckham Co., $144,000, terms n/30.
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Paid Beckham Co. the amount owed on the note of February 9.
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Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $180,000. (Journalize both the debit and credit to the notes payable account.)
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The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Date
Transaction
Feb. 15.
Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30.
Mar. 17.
Issued a 60-day, 7% note for $144,000 to Kirkwood Co., on account.
May 16.
Paid Kirkwood Co. the amount owed on the note of March 17.
June 15.
Borrowed $140,400 from Triple Creek Bank, issuing a 60-day, 8% note.
July 21.
Purchased tools by issuing a $120,000, 90-day note to Poulin Co., which discounted the note at the rate of 9%.
Aug. 14.
Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $140,400. (Journalize both the debit and credit to the notes payable account.)
Oct. 13.
Paid Triple Creek Bank the amount due on the note of August 14.
Oct. 19.
Paid Poulin Co. the amount due on the note of July 21.
Dec. 1.
Purchased equipment from Greenwood Co. for…
Chapter 10 Solutions
Corporate Financial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2BECh. 10 - Journalize period payroll The payroll register of...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Prob. 10.7BECh. 10 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 44 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Summary payroll data In the following summary of...Ch. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Prob. 10.13EXCh. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Prob. 10.17EXCh. 10 - Prob. 10.18EXCh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Prob. 10.22EXCh. 10 - Prob. 10.23EXCh. 10 - Prob. 10.24EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Prob. 10.4APRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Prob. 10.2BPRCh. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 3COPCh. 10 - Prob. 10.1ADMCh. 10 - Prob. 10.2ADMCh. 10 - Neiman Marcus and Kohls: Short-term liquidity...Ch. 10 - Cabelas and Dicks Sporting Goods: Short-term...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Prob. 10.3TIF
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