U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory.

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U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory. Thomson Home Furnishings Co. discounts the note at 7%.

a. Journalize U-Build It Warehouse’s entries to record:

1. the issuance of the note.

2. the payment of the note at maturity.

b. Journalize Thomson Home Furnishings Co.’s entries to record:

1. the receipt of the note.

2. the receipt of the payment of the note at maturity.

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: Sep 05, 2011 07:24 AM

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U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory.

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a 1 Merchandise Inventory 793000 Interest Expense 7000 Notes Payable 800000 2 Notes ...View the full answer

Accounting

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