Question
1a. The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31. January 26 Negotiated a line of credit
1a.
The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.
January | 26 | Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $2.10 million at the bank's prime rate. | ||
March | 1 | Arranged a six-month bank loan of $320,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity. | ||
September | 1 | Paid the 9% note at maturity. |
Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
1b. During November, Wireless, Inc., makes a $1,500 credit sale excluding sales tax. The state sales tax rate is 5% and the local sales tax rate is 1.50%. Record sales revenue and sales tax payable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest dollar amount.)
1c. On April 1, 2021, the Electronic Superstore borrows $19 million of which $6 million is due in 2022. Show how the company would report the $19 million debt on its December 31, 2021 balance sheet. (Enter your answers in dollars not in millions. For example, $7,000,000 rather than $7 million.)
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