Adjust Corporation (which is on a December 31 fiscal year end) engaged in the following transactions during 2016 and 2017 2016 Nov 1Issued a 120day, 12 note, face value of $20,000, to John son Company to settle an open account of that amount Dec 1Issued a 90 day, 12 note, face value of $32,000, lo ...

2016 Nov 1 AccountsPayable 20000 Notes Payable Johnso ...

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

Question:

Adjust (which is on a December 31 fiscal year end) engaged in the following transactions during 2016 and 2017:
2016
Nov. 1Issued a 120day, 12% note, of $20,000, to John son Company to settle an open account of that amount.
Dec. 1Issued a 90-day, 12% note, of $32,000, lo Winslow for the purchase of merchandise (the perpetual inventory method is used).
2017
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 Adjust’s books, including the adjusting entries at the end of 2016. Assume a 360 day year. 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...