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Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31 . During 2024 , the following transactions related to
Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31 . During 2024 , the following transactions related to receivables occurred: Required: 1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold. 2. Prepare any necessary adjusting entries at December 31, 2024. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Journal entry worksheet Sold merchandise to Lennox, Incorporated, for $20,000 and accepted a 6%,7 month note. 6% is an appropriate rate for this type of note. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Record accrued interest at December 31, 2024. Note: Enter debits before credits. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign
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