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Camden Biotechnology began operations in September 2 0 2 4 . The following selected transactions relate to liabilities of the company for September 2 0
Camden Biotechnology began operations in September The following selected transactions relate to liabilities of
the company for September through March Camden's fiscal year ends on December Its financial
statements are issued in April.
a On September opened checking accounts at Second Commercial Bank and negotiated a shortterm line of
credit of up to $ at the bank's prime rate at the time The company will pay no commitment fees.
b On October borrowed $ million cash from Second Commercial Bank under the line of credit and issued a five
month promissory note. Interest at the prime rate of was payable at maturity. Management planned to issue
year bonds in February to repay the note.
c Received $ of refundable deposits in December for reusable containers used to transport and store
chemicalbased products.
d For the SeptemberDecember period, sales on account totaled $ The state sales tax rate is and the
local sales tax rate is This is a summary journal entry for the many individual sales transactions for the period.
e Recorded the adjusting entry for accrued interest.
f In March, paid the entire amount of the note on its March due date, using proceeds from a February issuance of
$ million of year bonds at face value, along with other available cash.
g The storage containers covered by refundable deposits are expected to be returned during the first nine months
of the year. Half of the containers were returned in March
Required:
Prepare the appropriate journal entries for items ag
Prepare the current and longterm liability sections of the December balance sheet. Trade accounts
payable on that date were $
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Prepare the current and longterm liability sections of the December balance
sheet. Trade accounts payable on that date were $
Note: Enter your answers in whole dollars.
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