Journalize the following transactions: June 1 Roberts Co. purchased merchandise inventory on account, $60,000, terms n/30. July 1 Roberts Co. issued a 60 day, 5% note for $60,000 on account. Aug 30 Roberts Co. paid the amount due. Oct 1 Signed a $90,000, 60 day note for cash, discounted at the bank at 6%. Nov 30 Paid the Oct. 1 note.
Journalize the following transactions: June 1 Roberts Co. purchased merchandise inventory on account, $60,000, terms n/30. July 1 Roberts Co. issued a 60 day, 5% note for $60,000 on account. Aug 30 Roberts Co. paid the amount due. Oct 1 Signed a $90,000, 60 day note for cash, discounted at the bank at 6%. Nov 30 Paid the Oct. 1 note.
Related questions
Liability Transactions
The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year:
| Feb. 15. | Purchased merchandise on account from Hood Co., $144,000, terms n/30. |
| Mar. 17. | Issued a 60-day, 7% note for $144,000 to Hood Co., on account. |
| May 16. | Paid Hood Co. the amount owed on the note of March 17. |
| June 15. | Borrowed $157,200 from Acme Bank, issuing a 60-day, 8% note. |
| July 21. | Purchased tools by issuing a $81,000, 90-day note to Columbia Supply Co., which discounted the note at the rate of 8%. |
| Aug. 14. | Paid Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $157,200. (Journalize both the debit and credit to the notes payable account.) |
| Oct. 13. | Paid Acme Bank the amount due on the note of August 14. |
| Oct. 19. | Paid Columbia Supply Co. the amount due on the note of July 21. |
| Dec. 1. | Purchased office equipment from Mountain Equipment Co. for $144,000, paying $24,000 and issuing a series of ten 6% notes for $12,000 each, coming due at 30-day intervals. |
| Dec. 12. | Settled a product liability lawsuit with a customer for $80,000, payable in January. Emerald Bay accrued the loss in a litigation claims payable account. |
| Dec. 31. | Paid the amount due Mountain Equipment Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Don't round the intermediate calculations.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $18,300; (b) interest on the nine remaining notes owed to Mountain Equipment Co.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.
| Jan. 3 | Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. |
| Feb. 10 | Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. |
| 13 | Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. |
| Mar. 12 | Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. |
| 14 | Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. |
| Apr. 3 | Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) |
| May 11 | Received from Bradford & Co. the amount due on the note of March 12. |
| 13 | Dry Creek Co. dishonored its note dated March 14. |
| July 12 | Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. |
| Aug. 1 | Received from Trina Gelhaus the amount due on her note of April 3. |
| Oct. 5 | Sold merchandise on account, terms 2/10, n/30, to Halloran Co., $13,500. Record the sale net of the 2% discount. The cost of goods sold was $8,100. |
| 15 | Received from Halloran Co. the amount of the invoice of October 5, less 2% discount. |
