Payable Transactions} Richmond Company engaged in the following transactions during 2018: a. Purchased ($ 16,000) of supplies
Question:
Payable Transactions}
Richmond Company engaged in the following transactions during 2018:
a. Purchased \(\$ 16,000\) of supplies from ABC Supplies on February 16. Amount due in full on March 31 .
b. Paid for \(25 \%\) of the purchased supplies (transaction
a) on February 26.
c. On March 31 negotiated a payment extension with \(\mathrm{ABC}\) for the remainder of the balance from the February 16 purchase by signing a one-year, \(10 \%\) note.
d. Borrowed \(\$ 300,000\) on a 10 -month, \(8 \%\) interest-bearing note on April 30 .
e. Purchased \(\$ 78,000\) of merchandise on June 4. Amount due in full on June 30 .
f. Paid for the purchased merchandise (transaction \(e\) ) on June 24.
g. Received from Haywood Inc. on August 19, a \(\$ 22,000\) deposit against a total selling price of \(\$ 220,000\) for services to be performed for Haywood.
h. On December 15, Richmond completed the services ordered by Haywood on August 19. Haywood's remaining balance of \(\$ 198,000\) is due on January 31 .
\section*{Required:}
1. Prepare journal entries for these transactions.
2. Prepare any adjusting entries necessary at December 31, 2018.
Problem
Step by Step Answer:
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone