Goodie company, whose year end is December 31, entered into the following transaction relating to notes payable
Question:
Goodie company, whose year end is December 31, entered into the following transaction relating to notes payable during 2020,. Nov 15 Purchased inventory costing $60000 from Crystal company by paying $15000 cash and remainder by signing a 60 day,60% note payable. Dec 1 Purchased additional inventory costing $30000 from Crystal company by signing a 120 day,7% note payable. Dec13 issue a 180 day,$20000 note payable to the bank at 7.5%( Use 360days to calculate the interest expense) required. a) prepare adjusting entries in general journal format related to interest expense of the Nov 15 note as of December 31. b) prepare adjusting entries in journal format related to interest expense of the Dec.1 note as of December 31. C) prepare adjusting entries
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones