Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting

Question:

Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting Co. discounts the note at 8%.

a. Journalize Builder's Supply's entries to record:

1. The issuance of the note.

2. The payment of the note at maturity.

b. Journalize Gem Lighting Co.'s entries to record:

1. The receipt of the note.

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

See More Books

Question Posted: Nov 08, 2012 04:33 AM

See More Questions

NOTES PAYABLE ENTRIES Milo Radio Shop had the following notes payable transactions: Apr. Borrowed $5,000 from Builder's Bank, signing a 90-day, 8% note. 5 Gave a $2,000, 60-day, 7% note to Breaker...
A business issued a 90-day, 15% note for $91,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including...
The software inSSIDer from metageek lets you scan surroundingWiFi networks. Download inSSIDer 3.1.2.1 from the following link:http://www.techspot.com/downloads/5936-inssider.html a....
Let A be an n x n matrix with an eigenvalue A of multiplicity n. Show that A diagonalizable if and only if A = l.
Purchases of materials at prices more than a designated percentage off standard with information on who approved such purchases. LO.1
42. When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: Basis Fair Market Value Maude: Cash $ 20,000 $...
Carnival Corporation has recently placed into service some of the largest cruise ships in the world. One of these ships, the Carnival Dream, can hold up to 3,600 passengers and cost $750 million to...
Miller Company's contribution format income statement for the most recent month is shown below: 1.5 points Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating...
According to the U.S. Census, roughly half of all marriages in the United States end in divorce. Researchers from leading universities have shown that the emotions aroused by one persons divorce can...
Web World Magazine Inc. sold 6,900 annual subscriptions of Web World for $30 during December 2006. These new subscribers will receive monthly issues, beginning in January 2007. In addition, the...
A borrower has two alternatives for a loan: (1) Issue a $90,000, 90-day, 6% note (2) Issue a $90,000, 90-day note that the creditor discounts at 6%. a. Calculate the amount of the interest expense...
Firms often take advantage of their popular, wellknown brands by developing brand extensions because they know that the brand equity of the original or parent brand will be transferred to the new...
The table 1 below is shown the production theory of labour for company D'LIMAU Sdn Bhd. Input X Input Y Total Product (TP/Q) 1 0 0 1 1 20 1 2 80 1 3 180 1 4 230 1 5 270 1 6 270 1 7 210 Average...
Describe the most important three rights in the Bill of Rights of the United States Constitution. The Bill of Rights is the first ten amendments to the Constitution, but they contain far more than...
A red/white wine-tasting party will be held in the school in April, and the theme of the event will be formulated based on the season (April), place (Ontario/Canada), and target participants. Please...
We explored many of the revenue streams available to fund fire prevention practices. Describe one revenue stream and explain why you feel it is the most important in supporting fire prevention...
Multi-national management in a global economy requires a variety of hard and soft skills. This assignment is meant to enhance the understanding of multi-national situations locally or globally, and...
What do you like or dislike about websites used to sell hospitality products and services? What would cause you to use that site more and what would cause you to use that site less?
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
Explain how politics can influence each of the communication contexts.
(Qualitative Characteristics) SFAC No. 2 identifies the qualitative characteristics that make accounting information useful. Presented below are a number of questions related to these qualitative...
(Qualitative Characteristics) The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Identify the appropriate qualitative...
(Qualitative Characteristics) The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Identify the appropriate qualitative...
FINANCIAL STATEMENT ANALYSIS INSTRUCTIONS 1. PREPARE RATIO ANALYSIS REPORT ( word file) Format 1. Introduction 2. Importance of Financial Statements 3. Importance of Financial statement analysis and...
Let us assume that Europe is in recession, China's economy is slowing down, and the US economy is growing at 1-2%. Use these assumptions to invest in 4 ETFs (electronically traded funds). The 4 ETFs...
A section 83(b) election creates ordinary income at the time of the grant. Ture or False

Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting

Question:

Step by Step Answer:

a 1 Merchandise Inventory 196000 Interest Expense 4000 1 Notes ...View the full answer

Accounting

Students also viewed these Accounting questions