Barnes Company purchased merchandise on account, 3,500, with ...

[gonzo233]

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

[kishoreddi]

Answer to Question 1

b

Answer to Question 2

B

[gonzo233]

Gracias!

[covalentbond]

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