Question
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note payable is used to obtain cash for
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions were selected from those occurring during the year. |
a. | On January 10, purchased merchandise on credit for $24,500. The company uses a perpetual inventory system. |
b. | On March 1, borrowed $53,000 cash from City Bank and signed a promissory note with a face amount of $53,000, due at the end of six months, accruing interest at an annual rate of 10.00 percent, payable at maturity. |
Required: | |
1. | For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) |
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions were selected from those occurring during the year. |
a. | On January 10, purchased merchandise on credit for $24,500. The company uses a perpetual inventory system. |
b. | On March 1, borrowed $53,000 cash from City Bank and signed a promissory note with a face amount of $53,000, due at the end of six months, accruing interest at an annual rate of 10.00 percent, payable at maturity. |
Required: | |
1. | For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) |
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