23. On April 1, 2016, Ringo Company borrowed $20,000 from its bank by issuing a 12%, 12-month note, with the interest to be paid on the maturity date.

Required:

Prepare journal entries to record the issuance of the note and the related year-end adjusting entry.

24..

24

n May 1, Johnson Corporation purchased inventory for $40,000 on credit. On May 15, Johnson sold inventory with a cost of $10,000 for $20,000 on credit.

Required:

Prepare journal entries to record these transactions.

27.. On May 1, 2015, Alang Corporation borrowed $3,600 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Alang makes all interest payments on schedule. The correct December 31, 2016, adjusting entry would be

Interest Expense		144
	Interest Payable			144
Interest Expense		36
	Interest Payable			36
Interest Payable		144
	Cash			144
Interest Expense		108
	Cash			108

28. Which T-account is incorrect?

Interest Receivable
+	-
Capital Stock
+	-
Unearned Rent
+	-
Depreciation Expense
+	-

29.. Liabilities

For the current year, Vidalia Company reported revenues of $250,000 and expenses of $225,000. At the beginning of the year, its retained earnings had a balance of $95,000. During the year, Vidalia paid $11,000 dividends to shareholders. Its contributed capital was $56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalia's assets total $237,500 on December 31 of the current year. What are Vidalia's total liabilities on December 31 of the current year?

Total liabilities $--------