Question
On October 1, 2016, the Julius Cedar, Inc. sold lumber to Suite Deal Furnishings and received a 9-month, 5-percent note for $40,000. Interest is to
On October 1, 2016, the Julius Cedar, Inc. sold lumber to Suite Deal Furnishings and received a 9-month, 5-percent note for $40,000. Interest is to be paid at maturity. Julius Cedars year-end is December 31.
1. Record the journal entry to record the sale by Julius Cedar on October 1, 2016. Ignore the cost of inventory for this problem.
2. Record the appropriate adjusting entry related to the note by Julius Cedar on December 31, 2016.
3. Record the journal entry for the receipt of the amount due to the Julius Cedar at the notes maturity on July 1, 2017.
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4. Record the journal entry to record the purchase by Suite Deal Furnishings on October 1, 2016.
5. Record the appropriate adjusting entry related to the note by Suite Deal Furnishings on December 31, 2016.
6. Record the journal entry for the payment of the amount due to the Suite Deal Furnishings at the notes maturity on July 1, 2017.
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