Mizubishi Motors, Inc., which provides auto rental services, entered into the following transactions during the month of

Question:

Mizubishi Motors, Inc., which provides auto rental services, entered into the following transactions during the month of June:

a. Purchased a total of eight new cars and trucks from Jerry's Motors, Inc., for a total of \(\$ 115,600\), one-half of which was paid in cash. The balance is due within 45 days. The total cost of the vehicles to Jerry's Motors was \(\$ 95,000\).

b. Purchased \(\$ 3,300\) of supplies on account from White Supply Company.

c. Paid \(\$ 720\) to Mountain Electric for the monthly utility bill.

d. Rented a truck to Dave's Delivery, Inc. A \$500 down payment was received with the balance of \(\$ 1,000\) due within 30 days.

e. Paid \(\$ 5,120\) to Steve's Automotive for repair work on cars for the current month.

f. Rented a car to the town mayor, Rachel Mecham. The rent was \(\$ 800\) and was paid by Mecham immediately by cash.

g. Borrowed \(\$ 30,000\) from a local bank to be repaid in one year with \(12 \%\) interest.

Required:
For each of the transactions, make the proper journal entry on the books of Mizubishi Motors. (Omit explanations.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Financial Accounting IFRS Edition

ISBN: 9789814962605

3rd Edition

Authors: Earl K Stice, James D Stice, W Steve Albrecht, Monte R Swain, Rong-Ruey Duh, Audrey Wenhsin Hsu

Question Posted: