Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. Jul. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the not rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issui 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable ac Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $540,000, paying $108,000 cash and issuing ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable in January. Accrued t a litigation claims payable account. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Mar. Purchased merchandise on account from Kirkwood Co., $372,000, terms n/30. 31 Issued a 30-day, 4% note for $372,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Borrowed $150,000 from Triple Creek Bank, issuing a 45-day, 8% note. Jul. Purchased tools by issuing a $276,000, 60-day note to Poulin Co., which discounted the not rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issui 30-day, 6.5% note for $150,000. (Journalize both the debit and credit to the notes payable ac Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $540,000, paying $108,000 cash and issuing ten 4% notes for $43,200 each, coming due at 30-day intervals. 22 Settled a product liability lawsuit with a customer for $309,500, payable in January. Accrued t a litigation claims payable account. 31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 6P: Prepare entries in general journal form to record the following: June 12Sold merchandise on account...
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