Scribd
Upload
53 views

Audit Prob 2

The document describes transactions for Edwardson Corporation including purchasing goods on credit terms, buying a truck partially with cash and financing the rest with a note, and declaring a cash dividend. Journal entries are required to be made for these transactions along with any adjusting entries for interest as of December 31 year-end.

Uploaded by

Avox Everdeen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
53 views

Audit Prob 2

The document describes transactions for Edwardson Corporation including purchasing goods on credit terms, buying a truck partially with cash and financing the rest with a note, and declaring a cash dividend. Journal entries are required to be made for these transactions along with any adjusting entries for interest as of December 31 year-end.

Uploaded by

Avox Everdeen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem 2

Described below are certain transactions of Edwardson Corporation. The company uses the
periodic inventory system.
1. On February 2, the corporation purchased goods from Martin Company for P70,000
subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are
recorded by the corporation at net amounts after cash discounts. The invoice was paid on
February 26.
2. On April 1, the corporation bought a truck for P1,500,000, paying P500,000 in cash and
signing a one-year, 12% note for the balance of the purchase price.
3. On August 1, the board of directors declared a P300,000 cash dividend that was payable
on September 10 to shareholders of record on August 31.

Required:
a. Make all the journal entries necessary to record the transactions above using appropriate
dates. b. Edwardson Corporation’s year-end is December 31. Assuming that no adjusting
entries relative to the transactions above have been recorded, prepare any adjusting journal
entries concerning interest that are necessary to present fair financial statements at
December 31.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy