Mar 1 Purchased merchandise on account from Kirkwood Co., $300,000, terms n/30. 31 Issued a 30-day,...

 

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Mar 1 Purchased merchandise on account from Kirkwood Co., $300,000, terms n/30. 31 Issued a 30-day, 4% note for $300,000 to Kirkwood Co., on account. Apr 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Jul. Aug. Dec. 16 15 30 30 1 22 22 31 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the rate of 9%. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new. 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Paid Poulin Co. the amount due on the note of July 1. Purchased equipment from Greenwood Co. for $580,000, paying $102,000 cash and issuing a series of ten 6% notes for $47,800 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $300,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. Mar 1 Purchased merchandise on account from Kirkwood Co., $300,000, terms n/30. 31 Issued a 30-day, 4% note for $300,000 to Kirkwood Co., on account. Apr 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. Jul. Aug. Dec. 16 15 30 30 1 22 22 31 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 4% note. Purchased tools by issuing a $228,000, 60-day note to Poulin Co., which discounted the note at the rate of 9%. Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new. 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.) Paid Triple Creek Bank the amount due on the note of July 16. Paid Poulin Co. the amount due on the note of July 1. Purchased equipment from Greenwood Co. for $580,000, paying $102,000 cash and issuing a series of ten 6% notes for $47,800 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $300,500, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.

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Journal Entries for Mar 1 Dec 31 Transactions March 1 Debit Merchandise Inventory 300000 Credit Acco... View the full answer