Q1. On October 30, 2018, Muscat Co. purchased OR 18,000 of merchandise inventory on a seven months, 7% note payable. Muscat Co. uses a perpetual inventory system. Required: Journalize the company’s purchase of merchandise, accrual interest expense on December 31, and the payment of the note plus interest. Q2. Explain the current portion of long-term notes payable Q3. Ali, Ahmed, and Khalid are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Ali, OR 60,000; Ahmed, OR 70,000; and Khalid, OR 50,000. The profit and loss ratio has been 2:3:1 for Ali, Ahmed, and Khalid, respectively. The partnership has OR 35,000 cash, OR 170,000 non cash assets, OR 25,000 accounts payableRequired: Journalize the sale of the non-cash assets for OR 200,000, the payment of the liabilities, and the payment to the partners.
Q1. On October 30, 2018, Muscat Co. purchased OR 18,000 of merchandise inventory on a seven months, 7% note payable. Muscat Co. uses a perpetual inventory system.
Required: Journalize the company’s purchase of merchandise, accrual interest expense on December 31, and the payment of the note plus
interest.
Q2. Explain the current portion of long-term notes payable
Q3. Ali, Ahmed, and Khalid are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Ali, OR 60,000; Ahmed, OR 70,000; and Khalid, OR 50,000. The
Required: Journalize the sale of the non-cash assets for OR 200,000, the payment of the liabilities, and the payment to the partners.
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