Question: Make journal entries for the following transactions: a) On February 1, the firm borrowed $10,000 from a bank at a 12% annual interest rate. The

Make journal entries for the following transactions:

a) On February 1, the firm borrowed $10,000 from a bank at a 12% annual interest rate. The loan plus interest is due in twelve months

b) On March 1, the firm bought $15,000 of inventory on account

c) On April 4, the firm sold all inventory purchased in step (b) for $19,000 cash

d) On June 30, the firm made an adjusting entry for thr transaction in part (a) and closed its inclme statement accounts to prepare mid-year financial statements. Assume that no transactions other than listed above took place between January 1 and June 30, 2018

Step by Step Solution

★★★★★

3.38 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Date Particulars Debit Credit 01022018 Cash Ac Dr 10000 To 12 Loan Account 10000 Being Loan borrowed ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. 2. Prepare journal entries for the following transactions from Angled Pictures. June 21. Customer LeShaun Rogers purchased 167 picture frames at a sales price of $28 per frame with her American...

Prepare journal entries for the following transactions that occurred during July: 201X July 1 Jodi Wills invested $90,000 cash and $11,000 of equipment into her new business. 3 Purchased building for...

Prepare journal entries for the following transactions that occurred during March: 201X Mar. 1 Jordan Doxbury invested $50,000 cash and $5,000 of equipment into her new business. 3 Purchased building...

Can someone please make journal entries for the following transactions? Balance sheet as of December 31, 2019. Assets Cash $11,500,000 Land $500,000 Equity Common Stock $400,000 Paid in Capital C.S...

Hello, I need help using this information to make journal entries for December or t-charts for this ! I did most of the journal entries but I am confused about the adjusting entries as well as I am...

Part C: Advanced Bookkeeping, Brianas Apps (Version B) Required: STEP 1: Prepare the accounting records by doing the following: 1. Set up the Chart of Accounts. 2. Prepare the cash reconciliation for...

hello, ive done part one hut we are now on part two and three. please advise This practice set is designed in five parts. In the first part, the student will complete the journal entries for the...

Journal entry and adjusting balance. Please Answer Part 2 ONLY Prepare the journal entries for the issue of shares, issue of the bonds and the dividends, plus all the investments made during the...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

Read ALL instructions before getting started! ABC Corporation is a new company that buys and sells office supplies. Business began on January 1, 2016. Given on the first two tabs are ABC's 12/31/16...

Given that calculate DG and K for the following process at 25C: (The preceding reaction is an example of a disproportionation reaction in which an element in one oxidation state is both oxidized and...

1) Life, Inc. is preparing its financial statements for the year ended December 31, 2019. Accounts payable amounted to P200,000 before any necessary year-end adjustment related to the following: At...

Under what circumstances could a registrant engage in an outside activity ?

Which of the following is part of the law of Bergonie and Tribondeau? A. A fetus is less radiosensitive than an adult B. Stem cells are radiosensitive C. The more mature a cell is, the more...

Which of the following statements concerning whole body effects of radiation is TRUE? A. The time to death from the hematopoietic syndrome is 1-2 months B. The time to death from the cerebrovascular...

The death of a person 30-60 days following a total body radiation dose close to the LD50 would likely be due to damage to the: A. Heart B. Bone marrow C. Central nervous system D. Brain E....

By LD50/30 is denoted: A. The dose required to induce death in 30% of a given population by 50 days after irradiation. B. The dose required to induce death in 50% of a given population by 30 days...

The number of radiation-induced malignancies: A. is higher at low dose rates. B. is lower at low dose rates. C. is independent of the dose rate.

7 Best Sites to Buy Verified PayPal Accounts In today's online world, verified PayPal accounts are key for both businesses and individuals. They bring more security, credibility, and financial...

I have attached both the chapters from which you will be answering the following question. Ch 8 (p 387 of text or p 35 of the pdf) ?Exercise D. Prepare the bank reconciliation and any required...

Hi, I need accounting assignment help please. The Assignment have 3 parts (A, B, C). Part A is a make a balance. Part B is to make journal entries, and Part C is multiple choice questions. Thanks....

I need the solution Manual for chapter 9. I directions are attached. Instructions City of Smithville Full Version Computerized Cumulative Problem For use with McGrawHill Education Accounting for...

Ignore pink marks Chapter 6 Transactions Affecting General Long-term Liabilities and Debt Service The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the...

Chapter 6 Transactions Affecting General Long-term Liabilities and Debt Service The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for...

I need help solving the second part of this Chapter on Smithville. (Starting with [6-d-1]) Chapter 6 Transactions Affecting General Long-term Liabilities and Debt Service The City of Smithville...