Monte Cristo Products, which uses a perpetual inventory system, owed $930,000 on account for inventory purchased...
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Monte Cristo Products, which uses a perpetual inventory system, owed $930,000 on account for inventory purchased on November 1, 2024. The company's fiscal year ends on December 31. Monte Cristo was unable to pay the amount owed by the February 1 due date because of financial difficulties. On February 1, 2025, it signed a $930,000, 12% interest-bearing note. This note was repaid with interest on September 1, 2025. Required: 1. Prepare the entry recorded on November 1, 2024. 2. Prepare the entry recorded on February 1, 2025. 3. Prepare the entry recorded on September 1, 2025. General Journal General Journal Instructions 1. Prepare the entry recorded on November 1, 2024. 1 1 2 2. Prepare the entry recorded on February 1, 2025. DATE 1 2 DATE ACCOUNT DATE ACCOUNT GENERAL JOURNAL 3. Prepare the entry recorded on September 1, 2025. ACCOUNT GENERAL JOURNAL POST. REF. GENERAL JOURNAL POST. REF. POST. REF. Monte Cristo Products, which uses a perpetual inventory system, owed $930,000 on account for inventory purchased on November 1, 2024. The company's fiscal year ends on December 31. Monte Cristo was unable to pay the amount owed by the February 1 due date because of financial difficulties. On February 1, 2025, it signed a $930,000, 12% interest-bearing note. This note was repaid with interest on September 1, 2025. Required: 1. Prepare the entry recorded on November 1, 2024. 2. Prepare the entry recorded on February 1, 2025. 3. Prepare the entry recorded on September 1, 2025. General Journal General Journal Instructions 1. Prepare the entry recorded on November 1, 2024. 1 1 2 2. Prepare the entry recorded on February 1, 2025. DATE 1 2 DATE ACCOUNT DATE ACCOUNT GENERAL JOURNAL 3. Prepare the entry recorded on September 1, 2025. ACCOUNT GENERAL JOURNAL POST. REF. GENERAL JOURNAL POST. REF. POST. REF.
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Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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