![Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)](https://www.bartleby.com/isbn_cover_images/9780134833118/9780134833118_largeCoverImage.gif)
Trade Notes Payables. On February 1, Seville Sales, Inc. purchased Inventory costing $450,000 using a 6-month trade note payable. The note carries an annual interest rate of 9% Seville has a December 31 year-end. Prepare the
![Check Mark](/static/check-mark.png)
Learn your wayIncludes step-by-step video
![Blurred answer](/static/blurred-answer.jpg)
Chapter 13 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Managerial Accounting (4th Edition)
Construction Accounting And Financial Management (4th Edition)
Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting (11th Edition)
Cost Accounting (15th Edition)
- Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityarrow_forwardUse the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.arrow_forwardUnder the periodic inventory system, what account is debited when an estimate is made for sales made this year, but expected to be returned next year? (a) Sales Returns and Allowances (b) Merchandise Inventory (c) Customer Refunds Payable (d) Salesarrow_forward
- Bennett Enterprises issues a $ 744,000, 45-day, 8%, note to Spectrum Industries for merchandise inventory. Assume a 360 - day year. If required, round your answers to the nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. Journalize Bennett Enterprises' entries to record: the issuance of the note. the payment of the note at maturity. 1. 2. Question Content Area b. Journalize Spectrum Industries' entries to record: the receipt of the note. the receipt of the payment of the note at maturity. 1. 2.arrow_forwardI want answer for these questions with typing please. Thanks On October 30, 2018, Muscat Co. purchased OR 18,000 of merchandise inventory on 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. Explain the current portion of long-term notes payablearrow_forwardThe following are selected transactions of Andreu Company. Andreu prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Diego Company, $30,000, terms 2/10, n/30. (Andreu uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $30,000 note to Diego in payment of account. Mar. 31 Accrued interest for 2 months on Diego note. Apr. 1 Paid face value and interest on Diego note. July 1 Purchased equipment from Garcia Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note. Sept. 30 Accrued interest for 3 months on Garcia note. Oct. 1 Paid face value and interest on Garcia note. Dec. 1 Borrowed $15,000 from the Isova Bank by issuing a 3-month, 8% note with a face value of $15,000. Dec. 31 Recognized interest expense for 1 month on Isova Bank note. Instructions (a) Prepare journal entries for the listed transactions and events.arrow_forward
- Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,860; assume 17 Paid January 8 invoice. Apr. 1 Borrowed $35,000 from National Bank for general use; signed a 12-month, 8% annual interest-bearing note for the a perpetual inventory system. money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,420. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $6,000. Dec.20 Received a $100 deposit from a customer as 31 Determined wages of $9,500 were earned but not yet paid on December 31 (disregard payroll taxes). a guarantee to return a trailer borrowed for 30 days. Required: 1. For each transaction (including adjusting entries on December 31), indicate the effects (e.g., Cash + or -), using the following schedule: (Indicate the…arrow_forwardBennett Enterprises issues a $648,000, 60-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the nent of the note at rity. 1. 2.arrow_forwardThe following are selected transactions of Andreu Company. Andreu prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Diego Company, $30,000, terms 2/10, n/30. (Andreu uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $30,000 note to Diego in payment of account. Mar. 31 Accrued interest for 2 months on Diego note. Apr. 1 Paid face value and interest on Diego note. July 1 Purchased equipment from Garcia Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note. Sept. 30 Accrued interest for 3 months on Garcia note. Oct. 1 Paid face value and interest on Garcia note. Dec. 1 Borrowed $15,000 from the Isova Bank by issuing a 3-month, 8% note with a face value of $15,000. Dec. 31 Recognized interest expense for 1 month on Isova Bank note. Instructions (b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense.arrow_forward
- Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory. Required: A. Journalize Cosimo Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Dixon Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. he receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.arrow_forwardEntries for notes payable Bennett Enterprises issues a $432,000, 60-day, 8%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. b. Journalize Spectrum Industries’ entries to record: the receipt of the note. the receipt of the payment of the note at maturity.arrow_forwardRamsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%. Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)