Question
Exercise 1 Prepare journal entries to record the following transactions entered into by ABC Company: 2020 Aug. 1 Received a $30,000, 12%, 1-year note from
Exercise 1
Prepare journal entries to record the following transactions entered into by ABC Company:
2020
Aug. 1 Received a $30,000, 12%, 1-year note from Davis Cortez as full payment on his account.
Sept. 10 Sold merchandise on account to Melendez, Inc. for $20,000, terms 2/10, n/30.
Oct. 9 Received payment in full from Melendez, Inc.
Dec. 31 Accrued interest on Cortez's note.
2021
Aug. 1 Davis Cortez honored his promissory note by sending the face amount plus interest. No interest has been accrued in 2021.
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Accounting Chapters 14-23
Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver
8th Edition
0136073018, 978-0136073017
