Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 11, Problem 11.1BPR
1.
To determine
Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.
To journalize: The liabilities transactions.
2. a
To determine
To journalize: The
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Liability transactionsThe following items were selected from among the transactions completed by Aston Martin Inc. during the current year:
Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount.
May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%.15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.)
July 14. Paid Audi Company the amount due on the note of May 15.
Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account.
Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1.
30. Paid Exige Co. the amount owed on the note of September 15.
Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000…
Liability Transactions
The following items were selected from among the transactions completed by Aston Martin Inc. during the current year:
Apr. 15.
Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount.
May 1.
Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%.
15.
Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.)
July 14.
Paid Audi Company the amount due on the note of May 15.
Aug. 16.
Purchased merchandise on account from Exige Co., $90,000, terms, n/30.
Sept. 15.
Issued a 45-day, 6% note for $90,000 to Exige Co., on account.
Oct. 28.
Paid Spyder Manufacturing Co. the amount due on the note of May 1.
30.
Paid Exige Co. the amount owed on the note of September 15.
Nov. 16.
Purchased store…
Liability Transactions
The following items were selected from among the transactions completed by Aston Martin Inc. during the current year:
Apr. 15.
Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount.
May 1.
Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%.
15.
Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.)
July 14.
Paid Audi Company the amount due on the note of May 15.
Aug. 16.
Purchased merchandise on account from Exige Co., $90,000, terms, n/30.
Sept. 15.
Issued a 45-day, 6% note for $90,000 to Exige Co., on account.
Oct. 28.
Paid Spyder Manufacturing Co. the amount due on the note of May 1.
30.
Paid Exige Co. the amount owed on the note of September 15.
Nov. 16.
Purchased store…
Chapter 11 Solutions
Accounting (Text Only)
Ch. 11 - Does a discounted note payable provide credit...Ch. 11 - Employees are subject to taxes withheld from their...Ch. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - To match revenues and expenses properly, should...Ch. 11 - Prob. 8DQCh. 11 - When should the liability associated with a...Ch. 11 - Prob. 10DQ
Ch. 11 - Prob. 11.1APECh. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Prob. 11.2APECh. 11 - Prob. 11.2BPECh. 11 - Prob. 11.3APECh. 11 - Prob. 11.3BPECh. 11 - Prob. 11.4APECh. 11 - Prob. 11.4BPECh. 11 - Prob. 11.5APECh. 11 - Prob. 11.5BPECh. 11 - Prob. 11.6APECh. 11 - Prob. 11.6BPECh. 11 - Prob. 11.7APECh. 11 - Estimated warranty liability Quantas Industries...Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 11 - Entries for discounting notes payable Griffin...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - Prob. 11.5EXCh. 11 - Prob. 11.6EXCh. 11 - Prob. 11.7EXCh. 11 - Calculate payroll An employee earns 32 per hour...Ch. 11 - Calculate payroll Diego Company has three...Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Prob. 11.11EXCh. 11 - Payroll entries The payroll register for Proctor...Ch. 11 - Payroll entries Widmer Company had gross wages of...Ch. 11 - Prob. 11.14EXCh. 11 - Prob. 11.15EXCh. 11 - Prob. 11.16EXCh. 11 - Prob. 11.17EXCh. 11 - Prob. 11.18EXCh. 11 - Prob. 11.19EXCh. 11 - Accrued product warranty General Motors...Ch. 11 - Prob. 11.21EXCh. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - Quick ratio The current assets and current...Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data on employer FICA tax...Ch. 11 - Prob. 11.4APRCh. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 11.1BPRCh. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Prob. 11.3BPRCh. 11 - Prob. 11.4BPRCh. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 11.3CPPCh. 11 - Ethics and professional conduct in business Tonya...Ch. 11 - Prob. 11.2CPCh. 11 - Prob. 11.3CPCh. 11 - Contingent liabilities Altria Group, Inc., has...
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