The Adjusto Corporation (which is on a December 31 fiscal year end) engaged in the following transactions during 2007 and 2008 2007 Nov 1 Issued a 120 day, 12 note, face value of $15,000, to Johnson Company to settle an open account of that amount Dec 1 Issued a 90 day, 12 note, face value of $22,0...

2007 Nov 1 Accounts Payable 15000 Notes Payable Johnson 15000 Dec 1 Inventor ...

The Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during

Question:

The Adjusto (which is on a December 31 fiscal year-end) engaged in the following transactions during 2007 and 2008:
2007
Nov. 1 Issued a 120-day, 12% note, of $15,000, to Johnson Company to settle an open account of that amount
Dec. 1 Issued a 90-day, 12% note, of $22,000, to Winslow for the purchase of merchandise (the perpetual inventory method is used)
2008
Mar. 1 Paid the principal and interest on both the Johnson and the Winslow notes

Required
Prepare journal entries to record the preceding transactions on Adjusto’s books, including the adjusting entries at the end of 2007.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...