Exercise 13-2 The following are selected 2017 transactions of Stellar Corporation. Sept. 1 Purchased inventory from Encino Company on account for $58,800. Stellar records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $58,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $58,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $61,760 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit October 1 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit December 31 (To record interest on the note) December 31 (To record discount on the note) SHOW LIST OF ACCOUNTS LINK TO TEXT Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note $ (2) The zero-interest-bearing note $
Exercise 13-2 The following are selected 2017 transactions of Stellar Corporation. Sept. 1 Purchased inventory from Encino Company on account for $58,800. Stellar records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $58,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $58,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $61,760 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit October 1 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit December 31 (To record interest on the note) December 31 (To record discount on the note) SHOW LIST OF ACCOUNTS LINK TO TEXT Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note $ (2) The zero-interest-bearing note $
Related questions
Harvey Airline needs to send out one of its employees to Nunavut for three weeks to perform some repairs on some aircraft it owns. Some of the payments to be made for the supplies needed on the assignment will be paid from a petty cash fund. Harvey issued a cheque in the amount of $800.00 to establish the fund. After a few days at the assignment, the employee returned the following vouchers and receipts along with a report that the fund had $82.75 left in cash. Harvey decided to increase the petty cash fund to $1,000.00.
| Receipt | Amount | Description | |||
| 1 | $24.95 | Taxi ride from airport to job site | |||
| 2 | 42.60 | FedEx charges for delivering plane parts | |||
| 3 | 33.80 | Long distance telephone charges | |||
| 4 | 72.25 | Cleaning supplies - all used | |||
| 5 | 332.75 | Air freight to ship parts out for overhaul | |||
| 6 | 92.50 | Small tools replaced | |||
| 7 | 45.95 | Tarp to protect engine from elements | |||
| 8 | 66.50 | Grease and oil supplies - all used | |||
Prepare the journal entry to establish the petty cash fund. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Account Titles and Explanation | Debit | Credit |
1
2
Prepare the journal entry to replenish the fund to $800.00. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 52.75.)
Account Titles and Explanation Debit credit
1
2
3
4
5
6
Prepare the journal entry to increase the fund to $1,000.00. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit credit
1
2
