Brief Exercise 18-10 Date Account Titles and Explanation Debit Credit Mar. 1, 20
ID: 2397386 • Letter: B
Question
Brief Exercise 18-10
Date
Account Titles and Explanation
Debit
Credit
Mar. 1, 2017
(To record sales)
(To record cost of goods sold)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
Brief Exercise 18-10
On March 1, 2017, Tamarisk Company sold goods to Goosen Inc. for $684,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,052,419 (an inputed rate of 9%). The goods have an inventory cost on Tamarisk’s books of $397,000.(a) Prepare the journal entries for Tamarisk on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 1, 2017
(To record sales)
(To record cost of goods sold)
(b) Prepare the journal entries for Tamarisk on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
Explanation / Answer
(a)
Date
Account Titles and Explanation
Debit
Credit
Mar. 1, 2017
Notes Receivable
684000
Sales Revenue
684000
(To record sales)
Cost of Goods Sold
397000
Inventory
397000
(To record cost of goods sold)
(b)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
Notes Receivable
51300
Interest Income
51300
(684000 * 10/12) * 9%
Date
Account Titles and Explanation
Debit
Credit
Mar. 1, 2017
Notes Receivable
684000
Sales Revenue
684000
(To record sales)
Cost of Goods Sold
397000
Inventory
397000
(To record cost of goods sold)
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