Record these transactions in general journal form. Record any adjusting entries for interest in general journal form. Geary Corporation has a December 31 year-end.

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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Geary Corporation had the following transactions:

  • Apr. 15 - Issued a $6,000, 60-day, eight percent note payable in payment of an account with Marion Company.
  • May 22 - Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent.
  • June 14 - Paid Marion Company the principal and interest due on the April 15th note payable.
  • July 13 - Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest.
  • July 21 - Paid the May 22 note due to Sinclair Bank.
  • Oct 02 - Borrowed $38,000 from Sinclair Bank, signing a 120-day note at twelve percent interest.
  • Oct 11 - Paid the note payable and accrued interest to the Sharp Company (July 13).                    

 

 

  1. Record these transactions in general journal form.
  2. Record any adjusting entries for interest in general journal form. Geary Corporation has a December 31 year-end. 
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