Reference no: EM132065032

Question - The following are selected transactions of Graves Company. Graves prepares financial statements quarterly.

Prepare journal entries for the listed transactions and events. Round answers to 0 decimal places, e.g. 125.

Jan. 2 Purchased merchandise on account from Ally Company, $35,100, terms 3/10, n/30. (Graves uses the perpetual inventory system.)

Feb. 1 Issued a 6%, 2-month, $35,100 note to Ally in payment of account.

Mar. 31 Accrued interest for 2 months on Ally note.

Apr. 1 Paid face value and interest on Ally note.

July 1 Purchased equipment from Clark Equipment paying $11,590 in cash and signing a 7%, 3-month, $40,720 note.

Sept. 30 Accrued interest for 3 months on Clark note.

Oct. 1 Paid face value and interest on Clark note.

Dec. 1 Borrowed $18,000 from the Jonas Bank by issuing a 3-month, 6% note with a face value of $18,000.

Dec. 31 Recognized interest expense for 1 month on Jonas Bank note.