Question
. a) On October 12, 2017, Vitablend arranged with a supplier to replace an overdue $10,000 accounts payable by paying $2,500 cash and signing a
. a) On October 12, 2017, Vitablend arranged with a supplier to replace an overdue $10,000 accounts payable by paying $2,500 cash and signing a note for the remainder. The note matured in 90 days and had a 12% interest rate. Show the entries that would be recorded on October 12, December 31 and the date the note matures. 6 marks b) Metro Concerts receives $2,000,000 to advance cash ticket sales for a four-date tour for Diana Krall. Record the advance ticket sales as a lump sum as of October 31,2017. The concerts sold out and no additional ticket sale have been recorded. a. Record the revenue earned for the first concert date, November16,2017. b. Post journal entries for the two dates.
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