Question
Note 1: Jun 10 purchased merchandise from Brown Company and gave a note for 6,000, 8%, 90 days. Note 2: Nov 1 purchased merchandise from
Note 1: Jun 10 purchased merchandise from Brown Company and gave a note for 6,000, 8%, 90 days. Note 2: Nov 1 purchased merchandise from XYZ Corporation and gave a note for 17,000, 12%, 120 days. Note 3: Dec 6 sold merchandise to Able for 3,000 and received a 60 day note at 10% interest. Our company closes the accounting records on Dec 31.
Prepare the journal entries for the issue of Note 1 and the payment of the note. Include dates in your entries.
For Note 2, prepare the journal entries (including dates) for the issue of the note, year-end interest, and the payment of the note.
For Note 3, prepare the entries (including dates) for receiving the note, year-end entries and receiving payment of the note.
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