(Current Liability Entries and Adjustments) Described below are certain transactions

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(Current Liability Entries and Adjustments) Described below are certaintransactions of Edwardson AG. The company uses the periodic inventory system.
1. On February 2, the company purchased goods from Martin Company for €70,000 subject
to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by
Edwardson at net amounts after cash discounts. The invoice was paid on February 26.
2. On April 1, the company bought a truck for €50,000, paying €4,000 in cash and signing a
1-year, 12% note for the balance of the purchase price.
3. On August 1, the board of directors declared a €300,000 cash dividend that was payable
on September 10 to shareholders of record on August 31.
Instructions
a. Make all the journal entries necessary to record the transactions above using appropriate
dates.
b. Edwardson's year-end is December 31. Assuming that no adjusting entries relative to the
transactions above have been recorded, prepare any adjusting journal entries concerning
interest that are necessary to present fair financial statements at December 31

Jawaban dan Penjelasan

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Jawaban:

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Last Update: Sat, 09 Jul 22