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F. INSTRUCTIONS: Prepare the general journal entries to record the following transactions. (1) Pequot Co. received a 60-day, 12% note for $8,000 from a customer,
F. INSTRUCTIONS: Prepare the general journal entries to record the following transactions. | ||||||||||||||
(1) | Pequot Co. received a 60-day, 12% note for $8,000 from a customer, Dave Davidson, in settlement | |||||||||||||
of Davidson's account. | ||||||||||||||
(2) | Davidson failed to pay the note in (1) at maturity. | |||||||||||||
(3) | Ten days after the maturity of the note in (1), Davidson paid Pequot in full, including interest at | |||||||||||||
11% for this 10-day period. | ||||||||||||||
(4) | Pequot received a 90-day, 10% note for $3,000 from a customer, Sue Smith, in settlement of Smith's account. | |||||||||||||
(5) | The note in (4) was dishonored at maturity. | |||||||||||||
JOURNAL | PAGE | |||||||||||||
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ||||||||||
1 | 1 | |||||||||||||
2 | 2 | |||||||||||||
3 | 3 | |||||||||||||
4 | 4 | |||||||||||||
5 | 5 | |||||||||||||
6 | 6 | |||||||||||||
7 | 7 | |||||||||||||
8 | 8 | |||||||||||||
9 | 9 | |||||||||||||
10 | 10 | |||||||||||||
11 | 11 | |||||||||||||
12 | 12 | |||||||||||||
13 | 13 | |||||||||||||
14 | 14 | |||||||||||||
15 | 15 |
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