Carlsbad, CA (PRWEB) November 21, 2007 - Nexternal Solutions, a leading
provider of ecommerce software is pleased to announce that it now
offers a Preferred Delivery Date feature. This tool allows online
shoppers to specify a preferred delivery date when checking out. It
also allows merchants to easily manage current and future delivery date
shipments. Any merchant selling products that are event driven will
find this tool much appreciated by online shoppers.
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Red Bank Enterprises was involved in the following transactions
3. Notes payable. Red Bank Enterprises was involved in the following transactions during the fiscal year ending October 31:
2-Aug: Borrowed $55,000 from the Bank of Kingsville by signing a 90-day, 12% note.
20-Aug: Issued a $50,000 note to Harris Motors for the purchase of a $50,000 delivery truck. The note is due in 180 days and carries a 12% interest rate.
10-Sep: Purchased merchandise from Pans Enterprises in the amount of $15,000. Issued
a 30-day, 12% note in settlement of the balance owed.
11-Sep: Issued a $60,000 note to Datatex Equipment in settlement of an overdue account
payable of the same amount. The note is due in 30 days and carries a 14% interest
10-Oct: The note to Pans Enterprises was paid in full.
11-Oct: The note to Datatex Equipment was paid in full.
30-Oct: Paid note to Bank of Kingsville.
Assume the Accounts Payable account totals $203,600 on this date.
Instructions
a. Prepare journal entries to record the transactions.
b. Prepare adjusting entries on December 31 to record accrued interest. (Daily interest is calculated utilizing the 360 day method).
c. Prepare the Current Liability section of Red Bank's balance sheet as of December 31. Assume that the Accounts Payable account totals $203,600 on this date.