Chukanut Company completed the following transactions during Year 1. Chukanut's fiscal year ends on December 31. January 20 Paid cash for office supplies (held as office supplies inventory). The invoice amount was $18,288. April 1 Borrowed $464,000 from Royal Bank for general use; signed an 12-month, 4% annual interest-bearing note for the money. June 18 Received a $17,900 customer deposit for services to be performed in the future. July 22 Performed $6,840 of the services paid for on June 18. December 17 Received utility bill for $9,050. Chukanut plans to pay the bill in early February. December 31 Determined wages of $12,600 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Assume that $10,600 of the office supplies purchased were used and expensed during the year.

Chukanut Company completed the following transactions during Year 1. Chukanut's fiscal year ends on December 31. January 20 Paid cash for office supplies (held as office supplies inventory). The invoice amount was $18,288. April 1 Borrowed $464,000 from Royal Bank for general use; signed an 12-month, 4% annual interest-bearing note for the money. June 18 Received a $17,900 customer deposit for services to be performed in the future. July 22 Performed $6,840 of the services paid for on June 18. December 17 Received utility bill for $9,050. Chukanut plans to pay the bill in early February. December 31 Determined wages of $12,600 were earned but not yet paid on December 31 (disregard payroll taxes). Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. Assume that $10,600 of the office supplies purchased were used and expensed during the year.

Name: dont give answer in image format Chukanut Company completed the follow
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: dont give answer in image format Chukanut Company completed the following transactions during Year 1. Chukanut's fiscal year ends on December 31.January 20 Paid cash for office supplies (held as office supplies inventory). The invoice amount was $18,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
Sheridan Company obtains $36,800 in cash by signing a 7%, 6-month, $36,800 note payable to First Bank on July 1. Sheridan's fiscal year ends on September 30. What information should be reported for the note payable in the annual financial statements? In the balance sheet, Notes Payable of $ reported as In the income statement, Interest Expense of $ and Interest Payable of $ should be reported under should be
Vigeland Company completed the following transactions during Year 1. Vigeland’s fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,200; assume a perpetual inventory system. April 1 Borrowed $774,000 from Summit Bank for general use; signed a 10-month, 9% annual interest-bearing note for the money. June 14 Received a $24,000 customer deposit for services to be performed in the future. July 15 Performed $3,450 of the services paid for on June 14. December 12 Received electric bill for $26,160. Vigeland plans to pay the bill in early January. December 31 Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: Prepare journal entries for each of these transactions. Prepare the adjusting entries required on December 31.
during the fiscal year ended december 31, duckworth corporation engaged in the following transactions involving notes payable: sept. 16. purchased office equipment from earthtime equipment. the invoice amount was $24,000, and earthtime agreed to accept, as full payment, on 12%, three-month note for the invoice amount. nov. 1. borrowed $100,000 from sandra duckworth, a major corporate stockholder. the corporation issued duckworth a $100,000, 15%, 120-day note payable. dec. 1. purchased merchandise inventory in the amount of $5,000 from teller corporation. teller accepted a 90-day, 14% note as a full settlement of the purchase. duckworth corporation uses a perpetual inventory system. dec. 16. the $24,000 note payable to earthtime equipment matured today. duckworth paid the accrued interest on this note and issued a new 30-day, 16% note payable in the amount of $24,000 to replace the note that matured. instructions: a. prepare journal entries (in general journal form) to record the above…
Egnab Inc. had the following transactions during the current fiscal year ending December 31 . August 01. They borrowed $100,000 from Valley Bank, signing a 90-days, 7.50% Note Payable. October 15. Egnab Inc. purchased a truck from Trusty Cars for $29,500. Trusty Cars agreed to accept, as full payment, a 5.00%, two months Note for the invoice amount. November 1 Egnab Inc. paid Valley Bank the Note Payable plus the accrued interest. November 15. Egnab Inc. purchased merchandise (inventory) from Easy Food Corp. for $13,900. Easy Food Corp. accepted a 120-days, 6.50% Note as full settlement of the purchase. December 15. The Note Payable to Trusty Cars matured today and Egnab Inc. paid the accrued interest as well as 70.00% of the Note Payable. For the remaining amount, a new Note was issued for 45-days with 9.00% Interest. (show your calculations and round to 2 decimal places, please)   (a) Prepare Journal Entries to record the above transactions. Use a 360-day year in making the Interest…
The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from K. Weedon, a customer, for merchandise originally purchased on account. 12 Received a $6,000, 10%, 90-day note from M. Black, a customer, for merchandise originally purchased on account. 15 Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is estimated to be $1,230. Nov. 11 Sold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimated to be $850. 16 Received an $8,000, 12%, 60-day note from B. Butcher, a customer, for merchandise originally purchased on account. 20 Received a $6,000, 11%, 120-day note from D. Goldman, a customer, for merchandise originally purchased on account. Dec. 1 Received a $9,000, 13%, 60-day note from S. Lambert, a…
During the fiscal year ended December 31, Swanlee Corporation engaged in the following trans-actions involving notes payable: July 1 Borrowed $20,000 from Weston Bank, signing a 90-day, 12 percent note payable.Sept. 16 Purchased office equipment from Moontime Equipment. The invoice amount was$30,000, and Moontime agreed to accept, as full payment, a 10 percent, three-monthnote for the invoice amount.Oct. 1 Paid Weston Bank the note plus accrued interest.Dec. 1 Borrowed $100,000 from Jean Will, a major corporate stockholder. The corporationissued Will a $100,000, 9 percent, 120-day note payable.Dec. 1 Purchased merchandise inventory in the amount of $10,000 from Listen Corporation.Listen accepted a 90-day, 12 percent note as a full settlement of the purchase. SwanleeCorporation uses a perpetual inventory system.Dec. 16 The $30,000 note payable to Moontime Equipment matured today. Swanlee paid theaccrued interest on this note and issued a new 60-day, 16 percent note payable in theamount…
During the fiscal year ended December 31, Duckworth Corporation engaged in the following transactions involving notes payable: Sept. 16. Purchased office equipment from Earthtime Equipment. The invoice amount was $24,000, and Earthtime agreed to accept, as full payment, on 12%, three-month note for the invoice amount. Nov. 1. Borrowed $100,000 from Sandra Duckworth, a major corporate stockholder. The corporation issued Duckworth a $100,000, 15%, 120-day note payable. Dec. 1. Purchased merchandise inventory in the amount of $5,000 from Teller Corporation. Teller accepted a 90-day, 14% note as a full settlement of the purchase. Duckworth Corporation uses a perpetual inventory system. Dec. 16. The $24,000 note payable to Earthtime Equipment matured today. Duckworth paid the accrued interest on this note and issued a new 30-day, 16% note payable in the amount of $24,000 to replace the note that matured.
During the fiscal year ended December 31, Swanson Corporation engaged in the following transac-tions involving notes payable: Aug. 6 Borrowed $12,000 from Maple Grove Bank, signing a 45-day, 12 percent note payable.Sept. 16 Purchased office equipment from Seawald Equipment. The invoice amount was$18,000, and Seawald agreed to accept, as full payment, a 10 percent, three-monthnote for the invoice amount.Sept. 20 Paid Maple Grove Bank the note plus accrued interest. Nov. 1 Borrowed $250,000 from Mike Swanson, a major corporate stockholder. The corpora-tion issued Swanson a $250,000, 15 percent, 90-day note payable. Dec. 1 Purchased merchandise inventory in the amount of $5,000 from Gathman Corporation.Gathman accepted a 90-day, 14 percent note as full settlement of the purchase.Swanson Corporation uses a perpetual inventory system.Dec. 16 The $18,000 note payable to Seawald Equipment matured today. Swanson paid theaccrued interest on this note and issued a new 30-day, 16 percent note…
Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $465,000 from Commerce Bank after signing a 12-month, 7 percent, promissory note. June 6 Purchased merchandise on account at a cost of $66,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. Aug. 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance amounting to $18,600. Dec. 31 Determined salary and wages of $31,000 were earned but not yet paid as of December 31 (ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to security service. Required: 1. & 2. Make journal entries for each of the transactions through August 31 and adjusting entries required on December 31. 3. Show how all of the liabilities arising from these items are reported on the balance sheet…