Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881



Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem

Accounts and Notes Payable

On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest.


Prepare the necessary journal entries from February 15 through payment on September 30.

To determine

Concept introduction:


Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To prepare:

The necessary journal entries.


The necessary journal entries are explained as follows:

Barbour Industries
Journal Entries
Date Account Titles Debit Credit
Feb. 15 Merchandise Inventory $ 800,000
Accounts Payable $ 800,000
(Being merchandise purchased on account)

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe the economic logic behind the theory of purchasing-power parity.

Principles of Macroeconomics (MindTap Course List)

How does a cost-efficient capital market help reduce the prices of goods and services?

Fundamentals of Financial Management (MindTap Course List)

Describe how game theory might be used in a business setting.

Principles of Information Systems (MindTap Course List)

Why is an object said to have greater semantic content than an entity?

Database Systems: Design, Implementation, & Management

Would it be ethical for Amy to open such a file?

Principles of Information Security (MindTap Course List)

What are the two basic types of indicator movements?

Precision Machining Technology (MindTap Course List)

Solve Problem 20.11 using Excel.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

Describe the common complaints caused by faulty shock absorbers.

Automotive Technology: A Systems Approach (MindTap Course List)

What are main steps in the software acquisition process?

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

List methods to start a computer or device.

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)