Name ACG 2021-QUIZ CHAPTER 11 1. Record the following transactions (1) On Octobe

Question

Name ACG 2021-QUIZ CHAPTER 11 1. Record the following transactions (1) On October 1, we purchased a used truck for $12,000 and gave in exchange a nine-month, 4% note payable. Date Accounts Debit Credit (2) On December 31 (the close of the accounting year) we recorded the required adjusting journal entry for the note. Date Accounts Debit Credit (3) On July 1, we paid the note plus all interest due Date Accounts Debit Credit 2. On June 14th, Curb Construction Company received $15,000 from a customer as a deposit for services to be performed in the future. By July 31st, Curb Construction had completed 40% of the work to be done for the customer. Curb has a July 31 fiscal year and reports its financial statements annually. What does Curb Construction record on: (1) June 14th (2) July 31st Date Accounts Debit Credit

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries Event Date Particulars Debit Credit 1 1-Oct Truck Dr $12,000.00        To Note payable $12,000.00 (To record purchase of truck by issuing note) 2 31-Dec Interest Expense Dr $120.00        To Interest payable $120.00 (Being interest due on note) 3 1-Jul Note payable Dr $12,000.00 Interest payable Dr $120.00 Interest Expense Dr $240.00        To Cash $12,360.00 (To record payment of note)

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