On April 1, Year 3, River's Inc. purchased inventory for $20,000 by signing a 1-year note payable that is due March 31, Year 4. The interest rate is the market rate of 6%. All interest rates are expressed as an annual rate. River's Inc. uses the perpetual inventory system. Assume there is no GST or PST. River's Inc. fiscal year end is December 31st. Required Prepare the required journal entries from April 1, Year 3 through March 31, Year 4. Round interest to the nearest month.
On April 1, Year 3, River's Inc. purchased inventory for $20,000 by signing a 1-year note payable that is due March 31, Year 4. The interest rate is the market rate of 6%. All interest rates are expressed as an annual rate. River's Inc. uses the perpetual inventory system. Assume there is no GST or PST. River's Inc. fiscal year end is December 31st. Required Prepare the required journal entries from April 1, Year 3 through March 31, Year 4. Round interest to the nearest month.
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 1RE: Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare...
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