Question
On September 1, 2016, the Ichabod Crane Equipment, Inc. sold equipment to Bob Builder Corporation and received a 6-month, 6-percent note for $42,000. Interest is
On September 1, 2016, the Ichabod Crane Equipment, Inc. sold equipment to Bob Builder Corporation and received a 6-month, 6-percent note for $42,000. Interest is to be paid at maturity. Cranes year-end is December 31.
1. Record the journal entry to record the sale by Ichabod Crane on September 1, 2016. Ignore the cost of inventory for this problem.
2. Record the appropriate adjusting entry related to the note by Ichabod Crane on December 31, 2016.
3. Record the journal entry for the receipt of the amount due to the Ichabod Crane at the notes maturity on March 1, 2017.
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4. Record the journal entry to record the purchase by Bob Builder on September 1, 2016.
5. Record the appropriate adjusting entry related to the note by Bob Builder on December 31, 2016.
6. Record the journal entry for the payment of the amount due to the Bob Builder at the notes maturity on March 1, 2017.
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Financial Accounting Concepts And Applications
Authors: K. Fred Skousen, James D. Stice, Earl Kay. Stice, W. Steve Albrecht
7th Edition
0538876255, 978-0538876254
