Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 13.1BE
Trade Notes Payables. On February 1, Seville Sales, Inc. purchased Inventory costing $450,000 using a 6-month trade note payable. The note carries an annual interest rate of 9% Seville has a December 31 year-end. Prepare the
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On October 30, 2018, Muscat Co. purchased OR 18,000 of merchandise inventory on seven months, 7% note payable. Muscat Co. uses a perpetual inventory system.
Required: Journalize the company’s purchase of merchandise, accrual interest expense on December 31, and the payment of the note plus interest.
Explain the current portion of long-term notes payable
The following are selected transactions of Vaughn Company. Vaughn prepares financial statements quarterly.
Jan.
2
Purchased merchandise on account from Nunez Company, $40,000, terms 2/10, n/30. (Vaughn uses the perpetual inventory system.)
Feb.
1
Issued a 9%, 2-month, $40,000 note to Nunez in payment of account.
Mar.
31
Accrued interest for 2 months on Nunez note.
Apr.
1
Paid face value and interest on Nunez note.
July
1
Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $68,400 note.
Sept.
30
Accrued interest for 3 months on Marson note.
Oct.
1
Paid face value and interest on Marson note.
Dec.
1
Borrowed $27,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $27,600.
Dec.
31
Recognized interest expense for 1 month on Paola Bank note.
1.Prepare journal entries for the listed transactions and even
The following is sample list of the Speiran Company's transactions completed during 2019. The company's fiscal year
ends on December 31.
Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,720; assume a perpetual
inventory system.
17 Paid January 8 invoice.
Apr. 1 Borrowed $72,000 from Lowell Bank for general use; signed a 12-month, 8% annual interest-bearing note
for the money.
May 1 Rented office space in one of Speiran Company's buildings to another company and collected six months'
rent in advance amounting to $27,000.
Required:
1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
Chapter 13 Solutions
Intermediate Accounting
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - Prob. 13.3QCh. 13 - Do sellers recognize sales taxes as expenses on...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - What is a gam contingency? Is It accrued and...Ch. 13 - Do firms always accrue and record loss...Ch. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.1MCCh. 13 - Prob. 13.2MCCh. 13 - Prob. 13.3MCCh. 13 - Medical Services Inc allows employees at the end...Ch. 13 - Trade Notes Payables. On February 1, Seville...Ch. 13 - Unearned Revenues. On June 1 of the current year,...Ch. 13 - Unearned Revenues. GoSnow Inc. provides snow...Ch. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Sales Taxes Payable. Kloth Fabric Store operates...Ch. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - Asset Retirement Obligation at Acquisition. On...Ch. 13 - Prob. 13.12BECh. 13 - Asset Retirement Obligation, Disposal. Buckner...Ch. 13 - Prob. 13.14BECh. 13 - Prob. 13.15BECh. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - Warranty Liability, Assurance-Type Warranty,...Ch. 13 - Prob. 13.19BECh. 13 - Prob. 13.20BECh. 13 - Trade Notes Payable. On November 1, Barcelona...Ch. 13 - Unearned Revenues. On May 1 of the current year,...Ch. 13 - Gift Cards. Diamond Depot sold 57,000 of gift...Ch. 13 - Sales Taxes Payable. Eaton Technology operates...Ch. 13 - Prob. 13.5ECh. 13 - Asset Retirement Obligation. On January 1,...Ch. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.14ECh. 13 - Current Operating Liabilities. James Stores, Inc....Ch. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Payroll Taxes Payable. Jackson Corporation employs...Ch. 13 - Prob. 1JCCh. 13 - Prob. 2JCCh. 13 - Prob. 3JCCh. 13 - Prob. 1FSACCh. 13 - Surfing the Standards Case 1: Environmental...Ch. 13 - Prob. 2SSCCh. 13 - Prob. 1BCC
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