The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:

20Y3

Nov. 21 Received from McKenna Outer Wear Co., on account, a $54,000, 60-day, 7% note dated November 21 in settlement of a past due account.

Dec. 31 Recorded an adjusting entry for accrued interest on the note of November 21.

20Y4

Jan. 20 Received payment of note and interest from McKenna Outer Wear Co.

Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

CHART OF ACCOUNTS

Fasteners Inc. Co.

General Ledger

ASSETS

110 Cash

111 Petty Cash

121 Accounts Receivable-McKenna Outer Wear Co.

129 Allowance for Doubtful Accounts

131 Interest Receivable

132 Notes Receivable

141 Merchandise Inventory

145 Office Supplies

146 Store Supplies

151 Prepaid Insurance

181 Land

191 Store Equipment

192 Accumulated Depreciation-Store Equipment

193 Office Equipment

194 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

211 Salaries Payable

213 Sales Tax Payable

214 Interest Payable

215 Notes Payable

EQUITY

310 Owner, Capital

311 Owner, Drawing

312 Income Summary

REVENUE

410 Sales

610 Interest Revenue

EXPENSES

510 Cost of Merchandise Sold

520 Sales Salaries Expense

521 Advertising Expense

522 Depreciation Expense-Store Equipment

523 Delivery Expense

524 Repairs Expense

529 Selling Expenses

530 Office Salaries Expense

531 Rent Expense

532 Depreciation Expense-Office Equipment

533 Insurance Expense

534 Office Supplies Expense

535 Store Supplies Expense

536 Credit Card Expense

537 Cash Short and Over

538 Bad Debt Expense

539 Miscellaneous Expense

710 Interest Expense
Journalize the entries to record the transactions for the year 20Y3. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

Journalize the entries to record the transactions for the year 20Y4. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

Question

The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:

20Y3
Nov.	21	Received from McKenna Outer Wear Co., on account, a $54,000, 60-day, 7% note dated November 21 in settlement of a past due account.
Dec.	31	Recorded an adjusting entry for accrued interest on the note of November 21.
20Y4
Jan.	20	Received payment of note and interest from McKenna Outer Wear Co.

Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

CHART OF ACCOUNTS

Fasteners Inc. Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-McKenna Outer Wear Co.
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

EXPENSES

510

Cost of Merchandise Sold

520

Sales Salaries Expense

521

Advertising Expense

522

Depreciation Expense-Store Equipment

523

Delivery Expense

524

Repairs Expense

529

Selling Expenses

530

Office Salaries Expense

531

Rent Expense

532

Depreciation Expense-Office Equipment

533

Insurance Expense

534

Office Supplies Expense

535

Store Supplies Expense

536

Credit Card Expense

537

Cash Short and Over

538

Bad Debt Expense

539

Miscellaneous Expense

710

Interest Expense

Journalize the entries to record the transactions for the year 20Y3. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Journalize the entries to record the transactions for the year 20Y4. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Apr.	18.	Received a $68,400, 30-day, 7% note dated April 18 from Glenn Cross on account.
	30.	Received a $38,400, 60-day, 6% note dated April 30 from Rhoni Melville on account.
May	18.	The note dated April 18 from Glenn Cross is dishonored, and the customerâs account is charged for the note, including interest.
June	29.	The note dated April 30 from Rhoni Melville is dishonored, and the customerâs account is charged for the note, including interest.
Aug.	16.	Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 6% on the total amount debited to Glenn Cross on May 18.
Oct.	22.	Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30.

Nov.	3	Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600.
	5	Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice.
	6	Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400.
	13	Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6.
	14	Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000.
	15	Paid Papoose Creek Co. on account for purchase of November5.
	23	Received cash on account from sale of November 8 to QuinnCo.
	24	Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000.
	28	Paid VISA service fee of $3,540.
	30	Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300.

Mar.	1	Purchased merchandise on account from Kirkwood Co., $366,000, terms n/30.
	31	Issued a 30-day, 6% note for $366,000 to Kirkwood Co., on account.
Apr.	30	Paid Kirkwood Co. the amount owed on the note of March 31.
Jun.	1	Borrowed $198,000 from Triple Creek Bank, issuing a 45-day, 8% note.
Jul.	1	Purchased tools by issuing a $270,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
	16	Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $198,000. (Journalize both the debit and credit to the notes payable account.)
Aug.	15	Paid Triple Creek Bank the amount due on the note of July 16.
	30	Paid Poulin Co. the amount due on the note of July 1.
Dec.	1	Purchased equipment from Greenwood Co. for $400,000, paying $108,000 cash and issuing a series of ten 8% notes for $29,200 each, coming due at 30-day intervals.
	22	Settled a product liability lawsuit with a customer for $320,000, payable in January. Accrued the loss in a litigation claims payable account.
	31	Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.

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