Brad?s Building Supplies entered into the following transactions involving current liabilities during 2020 and 2021: Required Prepare
Question:
Brad?s Building Supplies entered into the following transactions involving current liabilities during 2020 and 2021:
Required
Prepare journal entries to record these transactions for Brad?s Building Supplies.
Transcribed Image Text:
2020 Purchased merchandise on credit from Shape Products for $156,000. The terms were 2/10, n/60. Assume Brad uses a perpetual inventory system; ignore sales taxes. Feb. 4 Mar. Borrowed $133,000 from the First Provincial Bank by signing a note payable for 30 days at 4.5%. Apг. Paid the First Provincial Bank note. 5 Gave Shape Products $16,000 cash and a $140,000, 30-day, 5% note to secure an extension on Brad's past-due account. May Paid the note given to Shape on April 5. Nov. Borrowed $216,000 at First Provincial Bank by signing a note payable for 60 days at 4%. 16 Borrowed money at the Bank of Montreal by giving a $30,000, 90-day, 5% note payable. Dec. 31 Recorded an adjusting entry for the accrual of interest on the note to the First Provincial Bank. 31 Recorded an adjusting entry for the accrual of interest on the note to the Bank of Montreal. 2021 Jan. 15 Paid the November 16 note to First Provincial Bank. Mar. Paid the principal and interest on the December 1 note given to the Bank of Montreal.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (9 reviews)
2020 Feb 4 Merchandise Inventory 15600000 Accounts Payable Shape Products 15600000 Purchased merchandise terms 210 n60 Mar 2 Cash 13300000 Notes Payab...View the full answer
Answered By
Arun kumar
made more than four thousand assignments
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Question Posted:
Related Video
Days payable outstanding is an efficiency ratio that measures the average number of days a company takes to pay its suppliers. The video shows how to effectively calculate days Payable outstanding.
Students also viewed these Business questions
-
Bhushan Building Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. June 1 Purchased merchandise on account from Brij Builders Materials,...
-
Sunita Computer Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. May 1 Purchased merchandise on account from Anju Enterprises, $200,000....
-
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021: Required 1. Determine the maturity dates of the three notes just described. 2....
-
For the transfer function below, find the constraints on K 1 and K 2 such that the function will have only two j poles. K1s + K2 T(s) = s4 + K1s + s? + K2s + 1
-
What are the five major activities of an operating system in regard to file management?
-
A researcher is pondering what survey mode to use for a client that markets a home security system. The system consists of tiny motion sensors that are pressed onto all of the windows and doors. Once...
-
There are seven books in the Harry Potter series. If the books are read in a randomly selected order, what is the probability that they are read in the order that they were written? Express all...
-
Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair market value on July 1, 2014 (the date of death), was $45,000. The shares were distributed to Tyneka...
-
what would happen if business turned down and the company made little or no gains over a pay period? Obtain a copy of Honey and Mumfords Learning Style Analysis and identify which grouping indicates...
-
Jisoo Limited and Rose Pty Limited entered into a joint operation, BP.Perfume, at the beginning of the financial year to produce and sell fragrances. The joint operation agreement indicates the...
-
What amount does WestJet, in Appendix II, report as the current portion of long-term debt as at December 31, 2017? In what accounting period will this amount be paid?
-
Zero-rated products and GST/HST-exempt products and services have unique treatment. Fifty Cent Recording Studio has approached you for direction on how to handle accounting for GST on their music...
-
Regis Corporation operates hair salons under various brand names including Supercuts, Mia & Maxx, and Style America. The following is a simplified list of accounts and amounts (in millions) reported...
-
A company traded in an old delivery truck for a new one. The old truck had a cost of $70,000 and accumulated depreciation of $55,500. The new truck had an invoice price of $120,000. The company was...
-
When you have finished your calculations, analyze the results and prepare a small report detailing your findings and any insights you may have from your results.
-
A company. has a project available with the following cash flows: Year 0 1 2 3 4 Cash Flow -$35,270 12,660 14,740 19,870 11,180 If the required return for the project is 8.2 percent, what is the...
-
Financial statements of a manufacturing firmThe following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video...
-
Given that f(x) = (2x-3)3 and f (1) = -1, if g is the inverse of f, what is the value of g(-1)?
-
Miller, Inc., has declared a $6.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15 percent. New IRS regulations require that taxes be withheld at the time the...
-
Discuss the concept of the looking-glass self. how do you think others perceive you? do you think most people perceive you correctly?
-
Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Urban Glam Cosmetics made sales on the following dates at a selling price of $35 per unit: Jan. 10...
-
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130. Required Calculate...
-
Assume that Volleyball Pro Equipment had $900,000 of sales during each of three consecutive years, and it purchased merchandise costing $500,000 during each of the years. It also maintained a...
-
Write the following as an inequality. -9 is less than x, and 6 is greater than or equal to x Use x only once in your inequality.
-
K Find the length of the golden rectangle whose width is 5.1 in. Use the approximation 1.62 for your work. If 5.1 is the width, then the length of the golden rectangle is approximately in. (Round to...
-
Could you elucidate the ways in which the novelist utilizes structural ambiguity and narrative fragmentation to depict the existential conflict between individual agency and societal determinism?
Study smarter with the SolutionInn App