Journalize the transactions using given details

Assignment Help Accounting Basics
Reference no: EM132746671

Question: The following items were selected from among the transactions completed by Sherwood Co. during the current year:

Mar.1Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.31Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.Apr.30Paid Kirkwood Co. the amount owed on the note of March 31.Jun.1Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.Jul.1Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.16Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.)Aug.15Paid Triple Creek Bank the amount due on the note of July 16.30Paid Poulin Co. the amount due on the note of July 1.Dec.1Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.22Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account.31Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.

Required: 1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar.

Reference no: EM132746671

Questions Cloud

Calculate the required sample size : The auditors are using mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,000.
Calculate the total dollar amount of dividends paid : On January 1, 2022, ABC Company's stockholders' equity included the following: Preferred stock (11%, $60 par, 10,000 shares issued & outstanding).
What is the bonds price : A bond with 16 years to maturity and a semiannual coupon rate of 5.89 percent has a current yield of 5.57 percent. The bond's par value is $2,000.
What is the amount of the gain or loss recognized : Samantha and her husband have been married for over 25 years and have built a successful family business, originally founded in 2002.
Journalize the transactions using given details : Mar.1Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.31Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.Apr.
What is meant by the off-balance-sheet business of banks : Define what is meant by the "off-balance-sheet business" of banks and Identify the four (4) main categories of off-balance-sheet business with examples.
Prepare the adjusting entry to record bad debt expense : Ayayai Company has a credit balance of $3,090 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage.
Is this difference favorable or unfavorable : TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The purchaser paid $75,000 cash at closing and gave TPW.
What is the net profit of the silay city agency : During the month, the sales agency submits sales on account of P1,500,000 which was duly approved by the home office. Cost of merchandise shipped to fill.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Transaction-translation and economic exposures

What are the differences among transaction, translation, and economic exposures? Should all of them be ideally reduced to zero?

  Identify the ethical issues with the scenario

In response, he purchased the shares of that other company prior to the proposed buyout becoming public. Identify the ethical issues with the scenario

  Calculate the net present value

Calculate the net present value, ignoring the additional benefits described by Rick should the tow truck be purchased

  Cost benefit considerations

Do you think that cost benefit considerations will be different in different countries? If so how would cost-benefit considerations be determined by a global accounting standard setter as the IASB?

  Prepare a formal income statement as of december

Emma Pfhoul started a computer consulting business, Phoulish Consulting Services, in December, 20X1. Prepare a formal Income Statement as of December 31, 20X1

  What is the cost of abnormal loss

Waykita Foods manufactures corn meal in a continous, mass production process. What is the cost of abnormal loss? How is this cost treated in May

  Give a statement reconciling the profit or loss on the cases

A company makes a charge to its customers for cases in which its product is delivered; if they are returned in good condition within three months a refund.

  Explain the dollar impact on current and future statements

Explain the dollar impact on current and future statements of treating the exchange as having, versus lacking, commercial substance

  What amount should it report as the cumulative effect

If Windsor's tax rate is 29%, what amount should it report as the cumulative effect of changing the estimated bad debt rate

  Calculate the firms operating income

Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues decrease by $10,000

  Prepare all the journal entries that Golf Corporation make

Prepare all the journal entries that Golf Corporation would make related to this bond issue from issue date through to December 31, 2019

  Accounts receivable and the statement of cash flows

Troy Corp.'s statement of cash flows reported an addition of $2,000 for the change in the Accounts Receivable account during the year. Sales on account for the year amounted to $24,500.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd