Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A business issued a 60 -day note for $84,000 to a bank. The note was discounted at 9%. CHART OF ACCOUNTS General Ledger ASSETS REVENUE

image text in transcribedimage text in transcribedimage text in transcribed

A business issued a 60 -day note for $84,000 to a bank. The note was discounted at 9%. CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Supplies 520 Salaries Expense 118 Prepaid Insurance 524 Depreciation Expense-Building 120 Land 525 Delivery Expense 123 Building 526 Repairs Expense 124 Accumulated Depreciation-Building 529 Selling Expenses 125 Office Equipment 531 Rent Expense 126 Accumulated Depreciation-Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Supplies Expense 210 Accounts Payable 535 Payroll Tax Expense 213 Interest Payable 536 Vacation Pay Expense 214 Notes Payable 537 Pension Expense 215 Salaries Payable 538 Cash Short and Over 216 Social Security Tax Payable 539 Product Warranty Expense 217 Medicare Tax Payable 540 Damage Awards and Fines 218 Employees Federal Income Tax Payable 541 Miscellaneous Expense 219 Employees State Income Tax Payable 710 Interest Expense 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 EPA Fines Payable 230 Litigation Claims Payable a. Joumalize the entries to record the issuance of the note on March 1 . Refer to the Chart of Accounts for exact wording of account tidles. Round your answers to nearest whole dow b. Joumalize the entries to record the payment of the note at maturity Assume a 360 -day year. Refer to the Chart of Acoounts for exact wording of account tidles. A business issued a 60 -day note for $84,000 to a bank. The note was discounted at 9%. CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Supplies 520 Salaries Expense 118 Prepaid Insurance 524 Depreciation Expense-Building 120 Land 525 Delivery Expense 123 Building 526 Repairs Expense 124 Accumulated Depreciation-Building 529 Selling Expenses 125 Office Equipment 531 Rent Expense 126 Accumulated Depreciation-Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Supplies Expense 210 Accounts Payable 535 Payroll Tax Expense 213 Interest Payable 536 Vacation Pay Expense 214 Notes Payable 537 Pension Expense 215 Salaries Payable 538 Cash Short and Over 216 Social Security Tax Payable 539 Product Warranty Expense 217 Medicare Tax Payable 540 Damage Awards and Fines 218 Employees Federal Income Tax Payable 541 Miscellaneous Expense 219 Employees State Income Tax Payable 710 Interest Expense 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 EPA Fines Payable 230 Litigation Claims Payable a. Joumalize the entries to record the issuance of the note on March 1 . Refer to the Chart of Accounts for exact wording of account tidles. Round your answers to nearest whole dow b. Joumalize the entries to record the payment of the note at maturity Assume a 360 -day year. Refer to the Chart of Acoounts for exact wording of account tidles

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: Robert L. Mathis, John H. Jackson

13th Edition

053845315X, 978-0538453158

More Books

Students also viewed these Accounting questions

Question

What is the use of bootstrap program?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago