Question - Transactions for Marco company for 2010
1. On Jan 10 the company purchased goods from Mahoney company for 50000 term 2/10,n/30. Purchases and account payable are recorded at net amounts. The invoice was paid on Jan 18.
2. On June 1 the company purchased equipment for 60000 from 3m company paying 20000 in cash and giving a one year 9% notes for the balance.
3. On Sept 30 the company discounted at 10% its 120000 one year zero interest bearing note at state bank.
Required -
a- Prepare journal entries for each dates.
b- Prepare journal entries for Dec 31 2010.
c- Which the above transaction should be reflected in the current liabilities section of Marco company's Dec 31-2010.