$1,400. The payroll taxes are immaterial b. Vacation pay, $15,000. and are not a
ID: 2457353 • Letter: #
Question
$1,400. The payroll taxes are immaterial b. Vacation pay, $15,000. and are not accrued. ns Series B PR 10-1B Liability transactions Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi 0B). 1,5 The following items were selected from among the transact m among the transactions completed by Aston Martin i Company, issuing a 30-day, 6% note for that amount May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufactur- ing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15.
Explanation / Answer
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Date Particulars Debit $ Credit $ Apr, 15 Bank 225,000 6% Notes Payable 225,000 May, 1 Equipment 320,000 6% Notes Payable 320,000 May, 15 Interest 1,125 6% Notes Payable 225,000 Bank 1,125 8% Notes payable 225,000 July, 14 Interest (225000*8%*60/360) 3,000 Bank 3,000 Aug, 16 Inventory 90,000 Exige Co. 90,000 Sep, 15 Exige Co. 90,000 6% Notes Payable 90,000 Oct, 28 6% Notes Payable 320,000 Interest (320000*6%*180/360) 9,600 Bank 329,600 Oct, 30 6% Notes Payable 90,000 Interest (90000*6%*45/360) 675 Bank 90,675 November, 16 Store Equipment 450,000 Cash 50,000 9% Notes Payable 400,000 December, 16 Interest (20000*9%*30/360) 150 Bank 150 December, 28 Litigation Claims 87,500 Litigation Claims Payable Account 87,500Related Questions
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