U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory.
Question:
U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory. Thomson Home Furnishings Co. discounts the note at 7%.
a. Journalize U-Build It Warehouse’s entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. Journalize Thomson Home Furnishings Co.’s entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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Step by Step Answer:
a 1 Merchandise Inventory 793000 Interest Expense 7000 Notes Payable 800000 2 Notes ...View the full answer
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Chiranjib Thakur
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Related Book For 
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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