Question

The following series of transactions occurred during 2020 and 2021 for Lannister Corporation following the sale...

The following series of transactions occurred during 2020 and 2021 for Lannister Corporation following the sale of merchandise to Golden Company Limited for $65,000 on credit. Lannister Corporation 's fiscal year end is December 31. Assume 28 days in the month of February.

01-Oct-20

Golden Company Limited indicate they won't be able to pay the full balance of the account until early next year. They agree to pay $20,000 cash and convert the balance of the amount owed to a 180-day, 8% note receivable.

31-Dec-20

Prepare the year-end interest adjustment for the note receivable.

1-Apr-21

Golden Company Limited dishonour their note at maturity.

30-Apr-21

Lannister Corporation decides to write-off Golden Company Limited’s debt.

5-May-2021

Golden Company Limited presents themselves to Lannister Corporation to settle their account and pay the debt in full.

Required:

  1. Prepare the journal entries for the transactions for the transactions listed above. Round to 2 decimal places.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 55,000 shares of common stock in exchange for $275,000 cash. Purchased office equipment at a cost of $53,750. $21,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $110,000. The company uses the perpetual inventory system. Credit sales for the month totaled $187,000....
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 75,000 shares of common stock in exchange for $375,000 cash. Purchased office equipment at a cost of $68,750. $27,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $150,000. The company uses the perpetual inventory system. Credit sales for the month totaled $255,000....
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 24,000 shares of non-par common stock in exchange for $240,000 in cash. Purchased equipment at a cost of $28,000. $7,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $74,000. The company uses the perpetual inventory system. Credit sales for the month totaled $90,000. The...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $530,000 at face value. Sep. 1 Acquired $1,290,000 of American Instruments' 10% bonds at face value. Sep. 30 Received...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $400,000 at face value. Sep. 1 Acquired $900,000 of American Instruments’ 10% bonds at face value. Sep. 30 Received...
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021....
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. 2020 Mar. 14 Purchased merchandise on credit from Ferris Inc. for $162,000. The terms were 1/10, n/30 (assume a perpetual inventory system). Apr. 14 Zing paid $36,000 cash and replaced the $126,000 remaining balance of the account payable to Ferris Inc. with a 5%, 60-day note payable. May 21 Borrowed $136,000 from Scotiabank by signing a 4.5%, 90-day note. ? Paid the note to...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company...
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 5% Distribution Transformers Corporation bonds costing $410,000 at face value. Sep....
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during...
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,145 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $12,290 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $22,100 balance owed by Hayden...
The following are selected transactions of Astin Corporation during year 2020. On September 1st, Astin Corp....
The following are selected transactions of Astin Corporation during year 2020. On September 1st, Astin Corp. purchased inventory from Encino Company on account for $50,000. Prepare the journal entry for Astin Corp. to record this credit purchase, assuming Astin Corp. uses the gross method and the periodic inventory system (1.5 points). Debit Credit On October 1st, Astin Corp. issued a $50,000, 12-month, 8% note to Encino Company as the payment for the credit purchase made on September 1st. Prepare the...
Prepare journal entries for the following transactions that occurred for a company in its first year...
Prepare journal entries for the following transactions that occurred for a company in its first year of operations. Year One sales: $2,500,000 total, of which $2,200,000 were sales on account. Year One collections of accounts receivable: $1,430,000. Year One write-offs: $26,000 12/31/Y1: Year-end adjustment to record estimated uncollectible accounts at 4% of credit sales. Directions: Prepare all journal entries, post to accounts, and show the year-end balance sheet presentation of accounts receivable.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT