The following selected transactions were completed by Zippy Do Co., a supplier of zippers for clothing:
2015 | | |
Dec. | 3 | Received from Chicago Clothing & Bags Co., on account, a $36,000, 90-day, 6% note dated December 3. |
| 31 | Recorded an adjusting entry for accrued interest on the note of December 3. |
| 31 | Recorded the closing entry for interest revenue. |
2016 | | |
Mar. | 2 | Received payment of note and interest from Chicago Clothing & Bags Co. |
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS |
Zippy Do Co. |
General Ledger |
| ASSETS | 110 | Cash | 111 | Petty Cash | 121 | Accounts Receivable-Chicago Clothing & Bags Co. | 129 | Allowance for Doubtful Accounts | 131 | Interest Receivable | 132 | Notes Receivable | 141 | Merchandise Inventory | 145 | Office Supplies | 146 | Store Supplies | 151 | Prepaid Insurance | 181 | Land | 191 | Store Equipment | 192 | Accumulated Depreciation-Store Equipment | 193 | Office Equipment | 194 | Accumulated Depreciation-Office Equipment | | LIABILITIES | 210 | Accounts Payable | 211 | Salaries Payable | 213 | Sales Tax Payable | 214 | Interest Payable | 215 | Notes Payable | | EQUITY | 310 | Owner, Capital | 311 | Owner, Drawing | 312 | Income Summary | | | REVENUE | 410 | Sales | 610 | Interest Revenue | | EXPENSES | 510 | Cost of Merchandise Sold | 520 | Sales Salaries Expense | 521 | Advertising Expense | 522 | Depreciation Expense-Store Equipment | 523 | Delivery Expense | 524 | Repairs Expense | 529 | Selling Expenses | 530 | Office Salaries Expense | 531 | Rent Expense | 532 | Depreciation Expense-Office Equipment | 533 | Insurance Expense | 534 | Office Supplies Expense | 535 | Store Supplies Expense | 536 | Credit Card Expense | 537 | Cash Short and Over | 538 | Bad Debt Expense | 539 | Miscellaneous Expense | 710 | Interest Expense | |
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.