Exercise 13-2 (Part Level Submission) (a) Date Account Titles and Explanation De
ID: 2490394 • Letter: E
Question
Exercise 13-2 (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
September 1
October 1
October 1
Exercise 13-2 (Part Level Submission)
The following are selected 2014 transactions of Sean Astin Corporation.Sept. 1 Purchased inventory from Encino Company on account for $59,400. Astin records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $59,400, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $81,440 from the Shore Bank by signing a 12-month, zero-interest-bearing $88,080 note.
Explanation / Answer
Answer :
Date Accounts Title and Explanation Debit Credit
September 1 Purchases a/c $59,400
To Encino Company a/c $59,400
(Being Goods Purchased from Encino Company)
October 1 Encino a/c $59,400
To 8% Note a/c $59,400
(Being issued a $59,400 12- month 8% note paid to Encino Company)
October 1 Loan a/c $81,440
To Shore Bank a/c $81,440
(Being amount $81,440 borrowed from shore bank by signing a 12- month
zero- interest- bearing $88080 note.)
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