Conti Products owed $50,000 on account for inventory purchased on December 1, 2010. Conti's fiscal year ends
Question:
Conti Products owed $50,000 on account for inventory purchased on December 1, 2010. Conti's fiscal year ends on December 31. Conti was unable to pay the amount owed by the February 28 due date because of financial difficulties. On March 1, 2011, Conti signed a $50,000, 10 percent interest-bearing note. This note was repaid with interest on September 1, 2011.
Required:
1. Prepare the entry recorded on December 1, 2010.
2. Prepare the adjusting entry recorded on December 31, 2010.
3. Prepare the entry recorded on March 1, 2011.
4. Prepare the entry recorded on September 1, 2011.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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