Davies Accessories Company entered into the following transactions relating to notes payable:
August 1 Purchased inventory costing $42,000 by signing an 8-month, 5% note payable.
October 1 Purchased inventory costing $15,000 by signing a 1-year, 6% note payable.
Required:
Prepare journal entries to record the above transactions. Also, prepare journal entries needed on December 31, the company's fiscal year end. Omit explanations.

Question

Quizplus · Accepted Answer

The Answer of Davies Accessories Company entered into the following transactions relating to notes payable:
August 1 Purchased inventory costing $42,000 by signing an 8-month, 5% note payable.
October 1 Purchased inventory costing $15,000 by signing a 1-year, 6% note payable.
Required:
Prepare journal entries to record the above transactions. Also, prepare journal entries needed on December 31, the company's fiscal year end. Omit explanations.

Davies Accessories Company Entered into the Following Transactions Relating to Notes