prepare journal entries for: requirement 1

1)Feb 28,2018 .Sold merchandise to Lennox, Inc. for $12,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of note.

2)March 31,2018. old merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 8%. The $8,300 payment is due on March 31, 2019.

3)April 03,2018.Sold merchandise to Carr Co. for $7,300 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts.

4)April 11,2018. Collected the entire amount due from Carr Co.

5)April 17, 2018. Evergreen reduced the customers receivable balance by $5,300, the sales price of the merchandise. Sales returns are recorded by the company as they occur.

6)April 17, 2018. A customer returned merchandise costing $3,500.

7)April 30, 2018. Transferred receivables of $53,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met.

8)June 30,2018. Accrued four months of interest on the note receivable issued on February 28.

9)June 30,2018.Discounted the Lennox, Inc., note at the bank. The banks discount rate is 10%. The note was discounted without recourse.

10)September 30,2018. Lennox, Inc., paid the note amount plus interest to the bank.

Requirement 2: Record accrued interest at December 31, 2016.

Requirement 3: Prepare a schuale showing the effect of the journal entries on 2018 income before taxes. dates: Feb28, March 31, April 3, April11,April17, April 30,June 30, June 30, December 31. show if income increses (Decreses)

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred Feb. 28 Sold merchandise to Lennox, Inc. for $12,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of Mar. 31 Sold merchandise to Maddox Co. and accepted a non interest-bearing note with a discount rate of 8%. The $8,300 payment is Apr. 3 Sold merchandise to Carr Co. for $7,300 with terms 3/10, n/30. Evergreen uses the gross method to account for cash note due on March 31, 2019 discounts. 11 Collected the entire amount due from Carr Co 17 A customer returned merchandise costing $3,500. Evergreen reduced the customer's receivable balance by $5,300, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $53,000 to a factor without recourse. The factor changed Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 10%. The note was discounted without recourse Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank Required: 1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise ignore the entry for the cost of goods sold 2. Prepare any necessary adjusting entries at December 31, 2018. Adjusting entries are only recorded at year-end 3. Prepare a schedule showing the effect of the journal entries on 2018 income before taxes Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Show less View transaction list Journal entry worksheet |1|2 3 4 5 6 7 8 9 10