nstructions 1. Journalize the transactions. 2. Journalize the following adjustin
ID: 2483029 • Letter: N
Question
nstructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, $8,560; officers salaries, $5,600; office sala ries $1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, $15,000. eries B PR 11-1B Liability transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that OBJ. 1,5 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%. id 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
Cash account debit 225,000
To notes payable 225,000
( Notes issued in leiu of borrowing)
Equipment account debit 320,000
To notes payable 320,000
( For notes issued for purchase of equipment)
15 May
Interest expense account debit 13,500
To cash 13,500
(Interest paid on 225,000 at 6% rate)
July 14
Notes payable account debit 225,000
Interest expense account debit 27,000
To cash 252,000
( Notes repaid back and the interest paid for 2 months May 15 till july 14)
Aug 16
Merchandise account debit 90,000
To accounts payable 90,000
( For merchandise bought on account)
Sep 15
Accounts payable account debit 90,000
To notes payable 90,000
(For notes issued against account payable)
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