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I need detailed answer please On January 1, 2020, Moxley Company prepares financial statements annually. During the year the following selected transactions occurred. (Moxley Company
I need detailed answer please
On January 1, 2020, Moxley Company prepares financial statements annually. During the year the following selected transactions occurred. (Moxley Company uses a periodic inventory system.) Jan. 1 Sold $3,000,000, 9%, 5-year bonds on January 1, 2010 at 101. Interest will be paid semiannually. Feb. 18 Sold $4,000 of merchandise to Zheng Company and accepted Zheng's $4,000, 6- month, 10% note for the amount due. June 1 Issued a $30,000 1-month note for the purchase of merchandise. The note bears 8% interest and is due July 1. Paid interest on bond issued on 1/1 30 Recorded accrued interest in 1/6. July 1 Paid principal and interest on the purchase of merchandise in 1/6. Aug. 18 Received payment in full from Zheng Company on note due. Instructions (a) Journalize the transactions (b) Posting to Ledger (not compulsory - 0.5p extra) Step by Step Solution
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