On March 1, 2014, Tundra Trees Company purchased equipment from Edworthy Equipment Dealership in exchange for a
Question:
On March 1, 2014, Tundra Trees Company purchased equipment from Edworthy Equipment Dealership in exchange for a seven-month, 8%, $30,000 note payable. Interest is due at maturity. Tundra Trees has a July 31 fiscal year end. Edworthy has a May 31 fiscal year end. Both companies adjust their accounts annually. Tundra honours the note at maturity.
Instructions
(a) For Tundra Trees, record all transactions related to the note.
(b) For Edworthy Equipment, record all transactions related to the note. Assume the cost of the equipment to Edworthy was $18,000.
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a Tundra Trees Mar 1 Equipment 30000 Notes Payable 30000 July 31 Interest Expense 1000 Interest Paya...View the full answer
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Related Book For 
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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