2. Grey Boat Company often requires customers to sign promissory notes for major credit purchases. Journalize...

Transcribed Image Text:

2. Grey Boat Company often requires customers to sign promissory notes for major credit purchases. Journalize the following transactions. Grey Boat's fiscal year ends on April 30. Dec 16 Accepted a $50,000, 6%, 45-day note from Bill Brazil as payment for a boat that cost Grey Boat $35,000 wholesale. (Do not make the entry for Cost of Goods Sold and Inventory) Dec 31 Adjusting entry-to accrue interest earned on the note. Jan 30 Bill Brazil pays the note and all of the interest. Date Account Titles and Explanation Debit Credit 2. Grey Boat Company often requires customers to sign promissory notes for major credit purchases. Journalize the following transactions. Grey Boat's fiscal year ends on April 30. Dec 16 Accepted a $50,000, 6%, 45-day note from Bill Brazil as payment for a boat that cost Grey Boat $35,000 wholesale. (Do not make the entry for Cost of Goods Sold and Inventory) Dec 31 Adjusting entry-to accrue interest earned on the note. Jan 30 Bill Brazil pays the note and all of the interest. Date Account Titles and Explanation Debit Credit