On October 1, 2009, ACME Athletic Equipment Company purchased athletic equipment on account for $10,500 from Sporting Goods Unlimited. On November 1, ACME renegotiated its debt by signing a three-month promissory note at an interest rate of 10%. Record the transactions in the accounting equation that would be recorded on October 1 and November 1 for both companies. Determine the due date of the note and prepare the transaction (using the accounting equation) to record the collection of the note on the books of both companies.
Answer to relevant QuestionsUsing the data from E4-26A, calculate the accounts receivable turnover ratio for 2011. On average, how many days does it take Darcy’s Floor Coverings to collect its accounts receivable?In E4-26A, at the beginning of 2011, ...Newman Smith is having trouble with the bank reconciliation at March 31. His reconciliation is as follows:Cash balance per bank ........ $ 7,578.65Add NSF check ........... 305.00Less bank service charge ....... ...On April 1, 2010, Tropical Aquatics purchased aquariums and equipment on account, for $25,000 from Tanks in All Shapes & Sizes, Inc. On May 1, Tropical Aquatics renegotiated its debt by signing a promissory note for two ...Storkville Baby Boutique had the following transactions during the first half of 2011:January 2 Sold merchandise on account to Tiny Tots Toys, $24,000. The cost of the merchandise sold was $18,000.February 3 Accepted a ...Information from River Corporation’s balance sheet at December 31, 2010, and income statement for the year ended December 31, 2010, is as follows:Cash ............. $ 15,000Cost of goods sold ........ 515,000Unearned ...
Post your question