Questions from College Accounting

Q: As a result of a loan from Plateau State Bank, Trent

As a result of a loan from Plateau State Bank, Trent Company signed a 90-day note, dated March 12, for $12,700 that the bank discounted at 7 percent. Journalize the entries for the maker in general jo...

Q: On August 5, M. Valenty borrowed $8,500

On August 5, M. Valenty borrowed $8,500 from Costner State Bank for 45 days, with a discount rate of 7 percent. Accordingly, M. Valenty signed a note for $8,500, dated August 5. Write entries in gener...

Q: On March 11, Rainz Company received a 90-day,

On March 11, Rainz Company received a 90-day, 6 percent note for $1,500, dated March 11, from J. Rose, a charge customer, to satisfy his open account receivable. a. What is the due date of the note? b...

Q: Rogan Company’s total sales on account for the year amounted to $

Rogan Company’s total sales on account for the year amounted to $327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required Journalize the f...

Q: Prepare entries in general journal form to record the following:

Prepare entries in general journal form to record the following: June 12 Sold merchandise on account to K. Perrot; terms n/30; $1,740. July 12 Received $740 in cash from K. Perrot and a 60-day, 7 perc...

Q: Explain the following credit terms: (a) n/

Explain the following credit terms: (a) n/30; (b) 2/10, n/60; (c) 1/15, EOM, n/30.

Q: The following T accounts show a series of four transactions concerning a

The following T accounts show a series of four transactions concerning a sale of merchandise on account and subsequent payment of the amount owed. Describe what happened in each transaction.

Q: Prepare entries in general journal form to record the following:

Prepare entries in general journal form to record the following: Aug. 6 Woodard Company failed to pay its 30-day, 10 percent note for $600, dated July 9. The note is thus dishonored at maturity.

Q: Abbott Florists sells flowers on a retail basis. Most of the

Abbott Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Abbott’s sales staff fills out a sales slip for each sale. There...

Q: Lowery’s Pet Depot records purchase transactions in the general journal. The

Lowery’s Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowery’s Pet Depot also uses an accounts payable le...