Question 3

Alpha Company had the following events during FY 2017:

Date: Event:

Mar. 1 Accepted Bravo Company's 4 month, 9% note, as settlement of an outstanding $18,000 accounts receivable for goods sold in the prior year.

Mar. 15 Sold, $27,200 of equipment (from merchandise inventory) to Charlie Company and accepted a 9 months, 6% note.

Mar. 21 Loaned Delta Company $22,800 cash and accepted a 90 days, 9% note.

June 19 Received payment from Delta Company.

July 1 Received payment from Bravo Company.

Dec. 16 Received payment from Charlie Company.

Alpha Company uses the periodic system for inventory sales and prepares quarterly adjusting entries. Use this information to prepare the compound General Journal entries (without explanation) for all events related to the notes. Students may add the company names after the notes receivable account names to further identify the various subsidiary note transactions.

Calculations for any interest must be done on a standard 360 day year for notes where the term is set in days. Use whole months (or fractions thereof) for notes with term limits set in months or years.

ANSWER:

Please see attachment for correct entry

3. Question 3 Alpha Company had the following events during FY 2017: Date: Mar. 1 Mar. 15 Mar. 21 June 19 July 1 Dec. 16 Event: Accepted Bravo Company's 4 month, 9% note, as settlement of an outstanding $18,000 accounts receivable for goods sold in the prior year. Sold, $27,200 of equipment (from merchandise inventory) to Charlie Company and accepted a 9 months, 6% note. Loaned Delta Company $22,800 cash and accepted a 90 days, 9% note. Received payment from Delta Company. Received payment from Bravo Company. Received payment from Charlie Company. Alpha Company uses the periodic system for inventory sales and prepares quarterly adjusting entries. Use this information to prepare the compound General Journal entries (without explanation) for all events related to the notes. Students may add the company names after the notes receivable account names to further identify the various subsidiary note transactions. Calculations for any interest must be done on a standard 360 day year for notes where the term is set in days. Use whole months (or fractions thereof) for notes with term limits set in months or years. ANSWER: Date Accounts 3/1 * * * 3/15 * * * 3/21 * * * 3/31 * Debit Credit * * 6/19 * * * * * 6/30 * * * 7/1 * * * * 9/30 * * * 12/16 * * * * *