use terms such as Cash Equipment Interest payable Notes payable Interest expense
ID: 2497668 • Letter: U
Question
use terms such as Cash Equipment Interest payable Notes payable Interest expenseTo journalize this
31. Paid $45,000 to the employee pension plan. The annual pension (Record both the payment and unfunded pension liability. cost is $60,000. Instructions 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 salaries, $1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, $15,000. lems Series B OBJ. 1,5 PR 10-1B 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 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%, loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) 15. Paid Audi Company the interest due on the note of April 15 and renewed the July 14. Paid Audi Company the amount due on the note of May 15.
Explanation / Answer
1.
Dr Cash 225,000
Cr Notes Payable 225,000
2.
Dr Equipment 320,000
Cr Notes Payable 320,000
3.
Dr Interest Expense 1,125
Cr Cash 1,125
Dr Notes Payable, Old Note 225,000
Cr Notes Payable, New Note 225,000
4.
Dr Interest Expense 3,000
Dr Notes Payable 225,000
Cr Cash 228,000
5.
Dr Merchandise Inventory 90,000
Cr Accounts Payable 90,000
6.
Dr Accounts Payable 90,000
Cr Notes Payable 90,000
7.
Dr Notes payable 320,000
Dr Interest expense 9,600
Cr Cash 329,600
8.
Dr Notes payable 90,000
Dr Interest expense 675
Cr Cash 90,675
9.
Dr Equipment 450,000
Cr Cash 50,000
Cr Notes payable 400,000
10.
Dr Notes payable 20,000
Dr Interest expense 150
Cr Cash 20,150
11.
Dr Litigation expense 87,500
Cr Litigation claims payable 87,500
12
Dr Warranty expense 26,800
Cr Provision for warranty 26,800
13.
Dr Interest expense 75
Cr Interest payable 75
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