accounting

Project Description:

larry sims owns sims auto sales. he periodically borrows money from biloxi state bank. he permits some customers to sign short-term notes for their purchases. he usually discounts these notes at the bank. following are selected transactions that occurred in march 2016. (2016 is a leap year.)

date transactions
2016
mar. 4 mr. sims borrows $20,000 from the bank on a note payable for the business. terms of the note are 8 percent interest for 45 days.
11 a 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.
22 sold a car to bridgett wilson for $13,000 on a 75-day note receivable, bearing interest at 10 percent.
23 discounted the wilson note with the bank. the bank charges a discount rate of 12 percent.
25 sold a car for $15,000 to derrick wells. wells paid $2,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.
28 terry owen's account receivable is overdue. sims requires him to sign a 12 percent, 30-day note for the balance of $5,500.

a. sims pays all the company’s notes payable on time.
b. bridgett wilson defaults on her $13,000 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $30.
c. derrick wells pays his note on time.
d. terry owens pays his note on time.

1. record each of the march transactions in the general journal. (do not round intermediate calculations. round your answers to 2 decimal places.)

journal entries worksheet

mr. sims borrows $20,000 from the bank on a note payable for the business. terms of the note are 8 percent interest for 45 days.

date general journal debit credit
mar 4, 2016

a 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.

date general journal debit credit
mar 11, 2016

sold a car to bridgett wilson for $13,000 on a 75-day note receivable, bearing interest at 10 percent.

date general journal debit credit
mar 22, 2016

discounted the wilson note with the bank. the bank charges a discount rate of 12 percent.

date general journal debit credit
mar 23, 2016

sold a car for $15,000 to derrick wells. wells paid $2,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.

date general journal debit credit
mar 25, 2016

terry owens's account receivable is overdue. sims requires him to sign a 12 percent, 30-day note for the balance of $5,500.

date general journal debit credit
mar 28, 2016

2. record the additional data related to these notes for months other than march. (do not round intermediate calculations. round your answers to 2 decimal places.)

journal entries worksheet

record the entry for the maturity of the $20,000 note.

date general journal debit credit
apr 18, 2016

record the entry for the maturity of the $18,000 note.

date general journal debit credit
jun 9, 2016

record the entry for the maturity and default of the bridgett wilson note.
date general journal debit credit
jun 5, 2016

record the entry for the maturity of the derrick wells note.

date general journal debit credit
apr 24, 2016

record the entry for the maturity of the terry owens note.

date general journal debit credit
apr 27, 2016

analyze:
what is the notes payable account balance on march 25?
notes payable ____________
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $10 to $20
Refunded
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