Following Are Transactions Of The Purple Onion Company 2019 Dec 16 Accepted A 18 000 60 Day 5 5 Note Dated This Day 1 (28.48 KiB) Viewed 67 times
Following are transactions of the Purple Onion Company: 2019 Dec.16 Accepted a $18,000, 60-day, 5.5% note dated this day in granting Hal Krueger a time extension on his past-due account. 31 Made an adjusting entry to record the accrued interest on the Krueger note. 31 Closed the Interest income account. 2828 Feb.14 Received Krueger's payment for the principal and interest on the note dated December 16. Mar. 2 Accepted a $13,000, 3.75%, 98-day note dated this day in granting a time extension on the past-due account of ARC Company. 17 Accepted a $4,500, 30-day, 4% note dated this day in granting Penny Bobek a time extension on her past-due account. Apr.16 Bobek dishonoured her note when presented for payment. Required: a. Prepare Journal entries to record the Purple Onion's transactions. (Use 365 days in a year. Do not round Intermediate calculations. Round your answers to 2 decimal places.)
Required: a. Prepare journal entries to record the Purple Onion's transactions. (Use 365 days in a year. Do not round Intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the acceptance of a 5.5%, $18,000 note receivable in 60 days. Note: Enter debits before credits. General Journal Debit Date Dec 16, 2019 Record entry Clear entry b-1. Determine the maturity date of the note dated March 2. Maturity date Credit View general Journal
b-2. Prepare the entry on the maturity date, assuming ARC Company honours the note. (Use 365 days in a year. Do not round Intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet < Record the collection of principal and interest on the note. Note: Enter debits before credits. Transaction General Journal Clear entry Record entry Debit Credit View general Journal
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