9. Described below are certain transactions of Ashby company: February 2 April 1 May 1 August...
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9. Described below are certain transactions of Ashby company: February 2 April 1 May 1 August 1 The company purchased goods from Happy Corp. for P150,000 subject to cash discount terms of 2/10, n/30. The company records purchases and accounts payable at net amounts after cash discounts. The invoice was paid on February 25. The company purchased a truck for P120,000 from Broom motors Corp., paying P12,000 in cash and signing a one-year, 12% note for the balance of the purchase price. The company borrowed P240,000 from Manila Bank by signing a P276,000 noninterest-bearing note due one year from May 1. The company's board of directors declared a P900,000 cash dividends that was payable on September 10 to shareholders of record of August 31. 1. Prepare all the journal entries necessary to record the transactions described above. 2. Assume that Ashby Company's financial year ends on December 31 and that no adjusting entries relative to the transactions above have been recorded. Prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. 9. Described below are certain transactions of Ashby company: February 2 April 1 May 1 August 1 The company purchased goods from Happy Corp. for P150,000 subject to cash discount terms of 2/10, n/30. The company records purchases and accounts payable at net amounts after cash discounts. The invoice was paid on February 25. The company purchased a truck for P120,000 from Broom motors Corp., paying P12,000 in cash and signing a one-year, 12% note for the balance of the purchase price. The company borrowed P240,000 from Manila Bank by signing a P276,000 noninterest-bearing note due one year from May 1. The company's board of directors declared a P900,000 cash dividends that was payable on September 10 to shareholders of record of August 31. 1. Prepare all the journal entries necessary to record the transactions described above. 2. Assume that Ashby Company's financial year ends on December 31 and that no adjusting entries relative to the transactions above have been recorded. Prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31.
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Answer rating: 100% (QA)
Answer 1 Journal Entries February 2 Accounts Payable Happy Corp 150000 Purchase Discounts 3000 15000... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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