For the March Transactions set forth below, prepare the journal entries for the month of March in a general journal March TransactionsMarch 3: Maxine Merger, who is a friend of the Williams brothers, wants to helpout their business and buys 50,000 shares of common stock for $100,000 and65,000 shares of preferred stock for $227,500, paying cash for both purchases.March 7: ABC, Inc. paid $2,000 toward its outstanding accounts payable balancedue Chairs-R-Us.March 12: Randy Reese made a promissory note payment of $13,500 to ABC, Inc.for the stock he purchased on February 12.March 18: ABC, Inc. made a large equipment purchase of $183,700 from BigMachinery Company. Big Machinery Company required ABC, Inc. to make a 15percent down payment. The remainder was put on account. March 24: ABC, Inc. paid $5,000 to Western Bank on its principal balance for itsloan.March 29: ABC, Inc. purchased $78,000 worth of materials (or inventory) fromThe Lumber Supplier to begin building an order of custom furniture. ABC, Inc.bought the materials on account.March 30: ABC, Inc. received an early promissory note payment from RandyReese for $13,500 for the stock he purchased on February 12.

Journal entries recording is the first step of accounting cycle process, under which atleast one…

Answered: For the March Transactions set forth…

Business

Accounting

For the March Transactions set forth below, prepare the journal entries for the month of March in a general journal

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8 percent, 30-day note for the balance of $37,440. Additional Data Howard pays all the company’s notes payable on time. Darnell Jones defaults on his $40,320 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $54. Henry Thomas pays…
DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8 percent, 30-day note for the balance of $37,440. Additional Data Howard pays all the company’s notes payable on time. Darnell Jones defaults on his $40,320 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $54. Henry Thomas pays…