Chapter 12, Problem 5PB

Review the following transactions and prepare any necessary journal entries.

A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5.

B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18.

C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%.

D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.