Question
Please help and answer the questions. I added question 5 for question 6. Question 1. Levine Company uses the perpetual inventory system. April 8 Sold
Please help and answer the questions. I added question 5 for question 6.
Question 1.
Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $9,700 (that had cost $7,168) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $4,400 (that had cost $2,851) and accepted the customer's Continental Card. Continental charges a 2.5% fee.
Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
No | Date | General Journal | Debit | Credit |
1 | April 08 | Cash | ||
Credit card expense | 388 | |||
Sales | 9700 | |||
2 | April 08 | Cost of goods sold | 7168 | |
Merchandise inventory | 7168 | |||
3 | April 12 | Cash | ||
Credit card expense | ||||
Sales | 4,400 | |||
4 | April 12 | Cost of goods sold | 2,851 | |
Merchandise inventory | 2,851 |
Please help to fill in for April 08 Debit/Credit, April 12 Cash Debit/Credit and credit card expense Debit/Credit.
Question 5. part 1 of 2
Following are transactions of Danica Company.
December 13 | Accepted a $22,000, 45-day, 4% note in granting Miranda Lee a time extension on her past-due account receivable. |
---|---|
December 31 | Prepared an adjusting entry to record the accrued interest on the Lee note. |
Complete the table to calculate the interest amounts at December 31st and use the calculated value to prepare your journal entries. (Do not round your intermediate calculations. Use 360 days a year.)
Interest Amounts
Total Through Maturity | Interest Recognized December 31 | |
Principal | $22,000 | $22,000 |
Rate % | 4% | 4% |
Time | 45/360 | 18/360 |
Total Interest | $110 | $44 |
General Journal
No | Date | General Journal | Debit | Credit |
1 | December 13 | Notes Receivable M. Lee | 22,000 | |
22,000 | ||||
2 | December 31 | Interest receivable | 44 | |
Interest revenue | 44 |
Question 6. part 2 of 2
Following are transactions of Danica Company.
December 13 | Accepted a $22,000, 45-day, 4% note in granting Miranda Lee a time extension on her past-due account receivable. |
---|---|
December 31 | Prepared an adjusting entry to record the accrued interest on the Lee note. |
January 27 | Received Lee's payment for principal and interest on the note dated December 13. |
---|---|
March 3 | Accepted a $16,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. |
March 17 | Accepted a $15,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable. |
April 16 | H. Cheng dishonored his note. |
May 1 | Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. |
June 1 | Received the Tomas payment for principal and interest on the note dated March 3. |
Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.)
M Lee note
Total Through Maturity | Amount Accrued at December 31 | Interest Recognized January 27 | |
Principal | |||
Rate % | |||
Time | |||
Total Interest |
Tomas Company Note
Total Through Maturity | |
Principal | |
Rate % | |
Time | |
Total Interest |
H Cheng Note
Total Through Maturity | |
Principal | |
Rate % | |
Time | |
Total Interest |
General Journal
No | Date | General Journal | Debit | Credit |
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