The following were among the transactions of Cliff Shop during this year. The firm, whose fiscal year ends on December 31, uses a periodic inventory system.
Jan. 11 Bought merchandise on account from Hardin Company, $ 4,350; terms net 30 days.
Feb. 10 Gave a 30- day, 6 percent note, dated February 10, for $ 4,350 to Hardin Company to apply on account.
Mar. 12 Paid $ 2,350 as partial payment on principal as well as the full interest on the note given to Hardin Company. Issued a new 60-day, 6.5 percent note, dated March 12, for $ 2,000 (two entries).
May 10 Borrowed $ 12,000 from Washburn Bank for 120 days; discount rate is 6 percent. Accordingly, signed a discounted note for $ 12,000, dated May 10.
11 Paid Hardin Company the amount owed on the note of March 12.
Sept. 7 Paid Washburn Bank the amount owed on the note of May 10.
Nov. 17 Bought a laptop computer for $ 1,150 from Byte Equipment. Issued a 90- day, 6 percent note, dated November 17.
Dec. 31 Recorded the adjusting entry for accrued interest on the note given to Byte Equipment.
Jan. 1 Recorded the reversing entry. (Assume the closing entries were journalized and posted.)

1. Record these transactions in the general journal (pages 10 and 11).
2. Immediately after each journal entry, record each note in the notes payable register.
3. Fill in the date paid after journalizing the entry to pay the note or fill in “renewed” if not paid.

  • CreatedOctober 21, 2014
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