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Prepare the journal entries to record the preceding information on Singer’s accounting records. Assume that the company does not normally sell its notes.

Prepare the journal entries to record the preceding information on Singer’s accounting records. Assume that the company does not normally sell its notes.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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Singer Corporation was involved in the following events in the current year:
June 30 Barney Manufacturing gives Singer a $3,000, 11%, 90-day note for merchandise purchased.
July 15 Dillon Construction Co. gives Singer a $9,000, 10%, 60-day note for merchandise originally purchased, on account, on April 20 of the current year.
30 The Barney and Dillon notes are sold with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is $1,800.
Sept 15 The bank notifies Singer that the Dillon note was paid.
30 The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $20 against Singer’s bank account.
 
  Prepare the journal entries to record the preceding information on Singer’s accounting records. Assume that the company does not normally sell its notes.
 
Instructions Singer Corporation was involved in the following events in the current year: June 30 Barney Manufacturing gives Singer a $3,000, 11%, 90-day note for merchandise purchased. July 15 Dillon Construction Co. gives Singer a $9,000, 10%, 60-day note for merchandise originally purchased, on account, on April 20 of the current year. 30 The Barney and Dillon notes are sold with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is $1,800. Sept 15 The bank notifies Singer that the Dillon note was paid. 30 The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $20 against Singer's bank account. Prepare the journal entries to record the preceding information on Singer's accounting records. Assume that the company does not normally sell its notes.
Transcribed Image Text:Instructions Singer Corporation was involved in the following events in the current year: June 30 Barney Manufacturing gives Singer a $3,000, 11%, 90-day note for merchandise purchased. July 15 Dillon Construction Co. gives Singer a $9,000, 10%, 60-day note for merchandise originally purchased, on account, on April 20 of the current year. 30 The Barney and Dillon notes are sold with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is $1,800. Sept 15 The bank notifies Singer that the Dillon note was paid. 30 The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $20 against Singer's bank account. Prepare the journal entries to record the preceding information on Singer's accounting records. Assume that the company does not normally sell its notes.
PAGE 14 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 9 10 11 12
Transcribed Image Text:PAGE 14 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 9 10 11 12
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