Using data from CP10-1, complete the following requirements. Data From CO10-1 Jan. 8 Purchased merchandise on account

Question:

Using data from CP10-1, complete the following requirements.

Data From CO10-1

Jan. 8 Purchased merchandise on account at a cost of $14,000. (Assume a perpetual inventory system.)

17 Paid for the January 8 purchase.

Apr. 1 Received $40,000 from National Bank after signing a 12-month, 6 percent, promissory note.

June 3 Purchased merchandise on account at a cost of $18,000.

July 5 Paid for the June 3 purchase.

Required:

1. Prepare journal entries for each of the transactions.

2. Prepare any adjusting entries required on December 31, 2013.

3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31, 2013.

4. Complete requirement 2 of CP10-1, if you have not already done so.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...