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 $70,000 sub
Described under are undoubtful transactions of Edwardson Corporation. The aggregation uses the occasional register rule.
1. On February 2, the confirmation donationd pi from Martin Aggregation for $70,000 topic to capital remittance stipulations of 2/10, n/30. Purchases and accounts payable are chronicled by the confirmation at net amounts behind capital remittances. The invoice was paid on February 26.
2. On April 1, the confirmation bought a barter for $50,000 from General Motors Company, paying
$4,000 in capital and signing a one-year, 12% melody for the weigh of the donation compensation.
3. On May 1, the confirmation added $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing melody due one year from May 1.
4. On August 1, the table of directors pretended a $300,000 capital dividend that was payable on September 10 to stockholders of annals on August 31.
(a) Make all the life entries requisite to annals the transactions over using mismisappropriate dates.
(b) Edwardson Corporation’s year-end is December 31. Assuming that no adjusting entries not-absolute to the transactions over possess been chronicled, adapt any adjusting life entries relative-to share that are requisite to introduce serene financial statements at December 31. Assume straight-line amortization of remittances.