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Friday, August 6, 2010

Valix Finacc vol 1 Problem 6-3

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-3


March 1  Cash                                                                                     2,000,000
                        Note payable – bank                                                                      2,000,000
                      
April    1  Cash                                                                                       980,000
               Sales discount                                                                            20,000
                        Accounts receivable                                                                       1,000,000
 
June   1  Cash                                                                                      2,000,000
                        Accounts receivable                                                                       2,000,000
                 
Sept.  1   Note payable – bank                                                           2,000,000
               Interest expense (12% x 2,000,000 x 6/12)                                 120,000
                        Cash                                                                                                2,120,000

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