Prepare journal entries in general journal form to record

Reference no: EM13586243

During the fiscal year ended December 31, Swanson Corporation engaged in the following transactions involving notes payable: Aug. 6 Borrowed $12,000 from Maple Grove Bank, signing a 45-day, 12 percent note payable. Sept. 16 Purchased office equipment from Seawald Equipment. The invoice amount was $18,000, and Seawald agreed to accept, as full payment, a 10 percent, three-month note for the invoice amount. Sept. 20 Paid Maple Grove Bank the note plus accrued interest. Nov. 1 Borrowed $250,000 from Mike Swanson, a major corporate stockholder. The corporation issued Swanson a $250,000, 15 percent, 90-day note payable. Dec. 1 Purchased merchandise inventory in the amount of $5,000 from Gathman Corporation. Gathman accepted a 90-day, 14 percent note as full settlement of the purchase. Swanson Corporation uses a perpetual inventory system. Dec. 16 The $18,000 note payable to Seawald Equipment matured today. Swanson paid the accrued interest on this note and issued a new 30-day, 16 percent note payable in the amount of $18,000 to replace the note that matured.

a.Prepare journal entries (in general journal form) to record the above transactions. Use a 360-day year in making the interest calculations

b.Prepare the adjusting entry needed at December 31, prior to closing the accounts. Use one entry for all three notes.

Reference no: EM13586243

Questions Cloud

Now suppose that the company currently has 180 units in : suppose that the demand for a company s product in weeks 1 2 and 3 are each normally distributed and the mean demand

Describe the good life not necessarily in the hedonistic or : describe the good life not necessarily in the hedonistic or material sense though you could if its a fact that reflects

A client operates a small business organized as a sole : a client operates a small business organized as a sole propreintship and is considering change the business to operate

Obtain normal probability plots boxplots and the standard : question an independent golf equipment testing facility compared the difference in the performance of golf balls hit

Prepare journal entries in general journal form to record : during the fiscal year ended december 31 swanson corporation engaged in the following transactions involving notes

I 2000 277 of incoming freshmen characterized their : question in 2000 27.7 of incoming freshmen characterized their political views as liberal 51.9 as moderate and 20.4 as

When you tell a coworker that you think that another : suppose that you express your discomfort with a certain action or conduct because you consider it to be unethical. when

Compare the nucleoid area prokaryotic to a nucleus : the discussion board db is part of the core of online learning. classroom discussion in an online environment requires

Which cost flow method results in the lowest inventory : smythe company inc. had a beginning inventory of 200 units of product erv at a cost of 6 per unit. during the year

User Account

All Pages