On January 2, Oak Ltd. sold merchandise on account to R. Daniel for $53,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $31,300. On February 1, R. Daniel gave Oak a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Oak's year end, annual adjusting entries were made. On July 1, R. Daniel paid the note and any remaining interest. Prepare the journal entries for Oak to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of merchandise sold) >

On January 2, Oak Ltd. sold merchandise on account to R. Daniel for $53,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $31,300. On February 1, R. Daniel gave Oak a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Oak's year end, annual adjusting entries were made. On July 1, R. Daniel paid the note and any remaining interest. Prepare the journal entries for Oak to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of merchandise sold) >

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Description: On January 2, Oak Ltd. sold merchandise on account to R. Daniel for $53,000, terms n/30. The company uses a perpetual inventorysystem and the merchandise originally cost $31,300. On February 1, R. Daniel gave Oak a five-month, 6% note in settlement

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 1MP

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