These are selected transactions of Bramble Company. Bramble prepares financial statements quarterly. Purchased merchandise on account from Nunez Company, $26,000, terms 2/10, n/30. (Bramble uses the perpetual inventory system.) Issued a 9%, 2-month, $26,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Apr. Paid face value and interest on Nunez note. July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $49,200 note. Sept. 30 Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $18,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $18,000. Jan. Feb. Mar. Oct. Dec. Dec. 2 1 31 1 1 1 31 Recognized interest expense for 1 month on Paola Bank note.

These are selected transactions of Bramble Company. Bramble prepares financial statements quarterly. Purchased merchandise on account from Nunez Company, $26,000, terms 2/10, n/30. (Bramble uses the perpetual inventory system.) Issued a 9%, 2-month, $26,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Apr. Paid face value and interest on Nunez note. July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $49,200 note. Sept. 30 Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $18,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $18,000. Jan. Feb. Mar. Oct. Dec. Dec. 2 1 31 1 1 1 31 Recognized interest expense for 1 month on Paola Bank note.

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 2RE: Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note...

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Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
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