Author Question: Barnes Company purchased merchandise on account, 3,500, with terms 3/10, n/30 . The entry required ... (Read 714 times)

gonzo233 · **on:** Jul 6, 2018

Barnes Company purchased merchandise on account, 3,500, with terms 3/10, n/30 . The entry required of Barnes Company to record the transaction in the cash payments journal, assuming payment is not made within the discount period, is
a. debit Accounts Payable, 3,500; credit Sales Discounts, 105; credit Cash, 3,395.
b. debit Accounts Payable, 3,500; credit Cash, 3,500.
c. debit Accounts Payable, 3,395; credit Cash, 3,395.
d. debit Accounts Payable, 3,500; credit Purchases Discounts, 105; credit Cash, 3,395.
e. credit Accounts Payable, 3,500; credit Cash, 3,500.

Question 2

If a governmental entity issued a six-month, 400,000 note payable at 6 interest three months prior to the fiscal year end to help finance a new fire station, Capital Projects Fund interest payable should be accrued as of the end of the fiscal year

in the amount of
a. 0
b. 6,000
c. 12,000
d. 24,000