Question

Adjust Corporation (which is on a December 31 fiscal year end) engaged in the following transactions during 2016 and 2017:
2016
Nov. 1 Issued a 120day, 12% note, face value of $20,000, to John son Company to settle an open account of that amount.
Dec. 1 Issued a 90-day, 12% note, face value of $32,000, lo Winslow Corporation for the purchase of merchandise (the perpetual inventory method is used).
2017
Mar. 1 Paid the principal and interest on both the Johnson and the Winslow notes.
Required:
Prepare journal entries to record the preceding transactions on Adjust’s books, including the adjusting entries at the end of 2016. Assume a 360 day year.


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  • CreatedOctober 05, 2015
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