ability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. Dec. 16. Paid the amount due Gallardo Co. on the first note in the series issued on November 16. 28. Settled a personal injury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc. accrued the loss in a litigation claims payable account. Required: For a compound transaction, accounts should be listed largest to smallest.
ability Transactions The following items were selected from among the transactions completed by Aston Martin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. Dec. 16. Paid the amount due Gallardo Co. on the first note in the series issued on November 16. 28. Settled a personal injury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc. accrued the loss in a litigation claims payable account. Required: For a compound transaction, accounts should be listed largest to smallest.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
Related questions
Question
Liability Transactions
The following items were selected from among the transactions completed by Aston Martin Inc. during the current year:
Apr. 15. | Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. |
May 1. | Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. |
15. | Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) |
July 14. | Paid Audi Company the amount due on the note of May 15. |
Aug. 16. | Purchased merchandise on account from Exige Co., $90,000, terms, n/30. |
Sept. 15. | Issued a 45-day, 6% note for $90,000 to Exige Co., on account. |
Oct. 28. | Paid Spyder Manufacturing Co. the amount due on the note of May 1. |
30. | Paid Exige Co. the amount owed on the note of September 15. |
Nov. 16. | Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. |
Dec. 16. | Paid the amount due Gallardo Co. on the first note in the series issued on November 16. |
28. | Settled a personal injury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc. accrued the loss in a litigation claims payable account. |
Required:
For a compound transaction, accounts should be listed largest to smallest.
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year.
Date | Account | Debit | Credit |
---|---|---|---|
Apr. 15 |
|
fill in the blank 2 | fill in the blank 3 |
|
fill in the blank 5 | fill in the blank 6 | |
May 1 |
|
fill in the blank 8 | fill in the blank 9 |
|
fill in the blank 11 | fill in the blank 12 | |
|
fill in the blank 14 | fill in the blank 15 | |
May 15 |
|
fill in the blank 17 | fill in the blank 18 |
|
fill in the blank 20 | fill in the blank 21 | |
|
fill in the blank 23 | fill in the blank 24 | |
|
fill in the blank 26 | fill in the blank 27 | |
July 14 |
|
fill in the blank 29 | fill in the blank 30 |
|
fill in the blank 32 | fill in the blank 33 | |
|
fill in the blank 35 | fill in the blank 36 | |
Aug. 16 |
|
fill in the blank 38 | fill in the blank 39 |
|
fill in the blank 41 | fill in the blank 42 | |
Sept. 15 |
|
fill in the blank 44 | fill in the blank 45 |
|
fill in the blank 47 | fill in the blank 48 | |
Oct. 28 |
|
fill in the blank 50 | fill in the blank 51 |
|
fill in the blank 53 | fill in the blank 54 | |
Oct. 30 |
|
fill in the blank 56 | fill in the blank 57 |
|
fill in the blank 59 | fill in the blank 60 | |
|
fill in the blank 62 | fill in the blank 63 | |
Nov. 16 |
|
fill in the blank 65 | fill in the blank 66 |
|
fill in the blank 68 | fill in the blank 69 | |
|
fill in the blank 71 | fill in the blank 72 | |
Dec. 16 |
|
fill in the blank 74 | fill in the blank 75 |
|
fill in the blank 77 | fill in the blank 78 | |
|
fill in the blank 80 | fill in the blank 81 | |
Dec. 28 |
|
fill in the blank 83 | fill in the blank 84 |
|
fill in the blank 86 | fill in the blank 87 |
2. Journalize the
a. Product warranty cost, $26,800.
b. Interest on the 19 remaining notes owed to Gallardo Co.
Item | Account | Debit | Credit |
---|---|---|---|
a. |
|
fill in the blank 89 | fill in the blank 90 |
|
fill in the blank 92 | fill in the blank 93 | |
b. |
|
fill in the blank 95 | fill in the blank 96 |
|
fill in the blank 98 | fill in the blank 99 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning