The following are events of the Singer Corporation for the current year: June 30 Barney Manufacturing gives

Question:

The following are events of the Singer Corporation for the current year:

June 30 Barney Manufacturing gives Singer a $5,000, 11%, 90-day note for merchandise purchased.

July 15 Dillon Construction Co. gives Singer a $6,000, 10%, 60-day note for merchandise originally purchased on April 20 of the current year.

July 30 The Barney and Dillon notes are discounted with recourse by Singer at its bank at 12%.

Sept. 15 The bank notifies Singer that the Dillon note was paid.

Sept. 30 The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $10 against Singer’s bank account.

Required

Prepare journal entries to record the preceding information on Singer’s accounting records. (Assume that the company does not normally discount its notes.)

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...