Ivanhoe sports authority purchased inventory costing $ 26 comma 000 by signing a 6%, six-month, short-term note payable. the purchase occurred on march 1 comma 2018. ivanhoe will pay the entire note (principal and interest) on the note's maturity date of september 1, 2018. journalize the company's (a) purchase of inventory; and (b) payment of the note plus interest on september 1 comma 2018.
The journal entries are shown below:
a. Inventory A/c Dr $26,000
To Notes payable A/c $26,000
(Being inventory is purchased for signing the short term notes payable)
b. Interest expense A/c Dr $780
Notes payable A/c Dr $26,000
To Cash A/c $ $26,780
(Being cash is paid on maturity)
The interest expense is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $26,000 × 6% × (6 months ÷ 12 months)
The 6 months is calculated from March 1 to September 1
muslims control the north africa during the period of 1500 up
to 1800. they made a barrier to prevent further european exploration from
entering the africa from the north. however, the dutch ware still able to move
toward the interior with having south africa as one of the routes leading to
the east for trading with asia.
a. primarily outdoors, responding to emergencies and protecting people.
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