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Described below are certain transactions of Larkspur Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Culver
Described below are certain transactions of Larkspur Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Culver Company for $64,800 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $50,000 from Ivanhoe Motors Company, paying $4,000 in cash and signing a 1year, 10% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $91,100 from Chicago National Bank by signing a $99,740 zero-interest-bearing note due 1 year from May 1. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Purchases Accounts Payable Accounts Payable Notes Payable Debit Credit
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