Brads Building Supplies entered into the following transactions involving current liabilities during 2023 and 2024: Required Prepare
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Brad’s Building Supplies entered into the following transactions involving current liabilities during 2023 and 2024:
RequiredPrepare journal entries to record these transactions for Brad’s Building Supplies.
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2023 Feb. 4 Mar. 2 Apr. 1 Purchased merchandise on credit from Shape Products for $156,000. The terms were 2/10, n/60. Assume Brad uses a perpetual inventory system; ignore sales taxes. Borrowed $133,000 from the First Provincial Bank by signing a note payable for 30 days at 4.5%. Paid the First Provincial Bank note. 5 Gave Shape Products $16,000 cash and a $140,000, 30-day, 5% note to secure an extension on Brad's past-due account. May 5 Paid the note given to Shape on April 5. Nov. 16 Borrowed $216,000 at First Provincial Bank by signing a note payable for 60 days at 4%. Dec. 1 Borrowed money at the Bank of Montreal by giving a $30,000, 90-day, 5% note payable. 31 Recorded an adjusting entry for the accrual of interest on the note to the First Provincial Bank. 31 Recorded an adjusting entry for the accrual of interest on the note to the Bank of Montreal. 2024 Jan. 15 Paid the November 16 note to First Provincial Bank. Mar. 1 Paid the principal and interest on the December 1 note given to the Bank of Montreal.
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2023 Feb 4 Mar 2 Apr 1 5 May 5 Nov 16 Merchandise Inventory Accounts Payable Shape Products Purchase...View the full answer
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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