Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q2 The following data were taken from the records of Zainab Chocolate Factory for the year ended December 31, 2019. Jan 2. Purchased merchandise on

image text in transcribed
image text in transcribed
Q2 The following data were taken from the records of Zainab Chocolate Factory for the year ended December 31, 2019. Jan 2. Purchased merchandise on account from LaBella Co., $180,000 terms 2/10, n/30. Feb1 Issued a 6%, 2 month, $180,000 note in payment of account. Mar31 Accrued interest for 2 months on LaBella Co. note. Apr1 Paid face value and interest on LaBella Co note. July! Purchased equipment from Sur Electronics paying $65,000 in cash and signing a 9%, 3 month, $240,000 note. Sept.30 Accrued interest for 3 months on Sur Electronic note. Oct.1 Paid face value and interest on Sur Electronic note. Dec. 1 Borrowed $250,000 from the Dhofar Bank by issuing a 3 month, 12% interest bearing note with a face value of $250,000 Dec. 31 Recognized interest expense for 1 month on Dhofar Bank note. Dec. 31 Zainab Chocolate Co. does not segregate sales and sales taxes separately in its register. On Dec. 31 the register is $117,700, which includes a 7% sales taxes. Instructions: Prepare journal entries for the above transactions and events. Q3 In January 2010, the management of Noble Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Hiens common stock for $31,800, plus brokerage fees of $600. Mar. 1 Purchased 800 shares of Pryce common stock for $20,000, plus brokerage fees of $400. Apr. 1 Purchased 50 $1,000, 7% Roy bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the Hiens common stock. Aug. 1 Sold 200 shares of Hiens common stock at $58 per share less brokerage fees of $200. Sept. 1 Received a $1 per share cash dividend on the Pryce common stock. Oct. 1 Received the semiannual interest on the Roy bonds. Oct. 1 Sold the Roy bonds for $50,000 less $1,000 brokerage fees. Instructions: Journalize the transactions

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_2

Step: 3

blur-text-image_3

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

Dare To Be Different An Auditors Personal Guide To Excellence

Authors: Daniel Clark

1st Edition

1490772405, 978-1490772400

More Books

Students also viewed these Accounting questions

Question

Create a workflow analysis.

Answered: 1 week ago