Journalize the following transactions in the accounts of Powerplay Co., which operates a riverboat casino: Mar. 1.
Question:
Journalize the following transactions in the accounts of Powerplay Co., which operates a riverboat casino:
Mar. 1. Received a $45,000, 60-day, 6% note dated March 1 from Pynn Co. on account.
18. Received a $24,000, 60-day, 9% note dated March 18 from Abode Co. on account.
Apr. 30. The note dated March 1 from Pynn Co. is dishonored, and the customer's account is charged for the note, including interest.
May 17. The note dated March 18 from Abode Co. is dishonored, and the customer's account is charged for the note, including interest.
July 29. Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Pynn Co. on April 30.
Aug. 23. Wrote off against the allowance account the amount charged to Abode Co. on May 16 for the dishonored note dated March 18.
Step by Step Answer:
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac