Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2019. The 6% rate is appropriate in this situation Required 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold) the December 31, 2018 interest accrual, and the March 31, 2019 collection. 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2018 and 2019? Required 1Required 2 Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the sale of merchandise. 2 Record the interest accrual. 3 Record the cash collection. Journal entry worksheet Record the sale of merchandise. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2018 Record entry Clear entry View general journal Journal entry worksheet Record the interest accrual Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Required 1 Required 2 If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over-or understated in 2018 and 2019? 2018 income before income taxes would be by 2019 income before income taxes would be by KRequired 1 Required 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Curriculum Management Audit

Authors: Larry E. Frase, Fenwick W. English, William K. Poston

1st Edition

0810839318, 9780810839311

More Books

Students also viewed these Accounting questions

Question

Describe direct labor cost.

Answered: 1 week ago