Mizubishi Motors, Inc., which provides auto rental services, entered into the following transactions during the month of
Question:
Mizubishi Motors, Inc., which provides auto rental services, entered into the following transactions during the month of June:
a. Purchased a total of eight new cars and trucks from Jerry's Motors, Inc., for a total of \(\$ 115,600\), one-half of which was paid in cash. The balance is due within 45 days. The total cost of the vehicles to Jerry's Motors was \(\$ 95,000\).
b. Purchased \(\$ 3,300\) of supplies on account from White Supply Company.
c. Paid \(\$ 720\) to Mountain Electric for the monthly utility bill.
d. Rented a truck to Dave's Delivery, Inc. A \$500 down payment was received with the balance of \(\$ 1,000\) due within 30 days.
e. Paid \(\$ 5,120\) to Steve's Automotive for repair work on cars for the current month.
f. Rented a car to the town mayor, Rachel Mecham. The rent was \(\$ 800\) and was paid by Mecham immediately by cash.
g. Borrowed \(\$ 30,000\) from a local bank to be repaid in one year with \(12 \%\) interest.
Required:
For each of the transactions, make the proper journal entry on the books of Mizubishi Motors. (Omit explanations.)
Step by Step Answer:
Principles Of Financial Accounting IFRS Edition
ISBN: 9789814962605
3rd Edition
Authors: Earl K Stice, James D Stice, W Steve Albrecht, Monte R Swain, Rong-Ruey Duh, Audrey Wenhsin Hsu