Accounts and Notes Payable

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• Journal entry for conversion of accounts to notes payable

  right for either one of them The second one is correct Accounts payable $150 notes payable $150 By debiting accounts payable we reduce the accounts payable and by crediting notes payable we increase

• Journal Entries

  Reducing accounts payable means that we are debiting it and increasing notes payable means that we are crediting it. The solution answers the question below and goes into some detail as well.

• Classifying Balance Sheet Accounts

  304165 Classifying Balance Sheet Accounts Accounts payable Accounts receivable Cash Notes payable Cleaning equipment Salaries payable Cleaning Supplies Common Stock Instructions Classify each item as an asset, liability, or stockholders

• Trial Balance

  This would increase inventory and accounts payable by 5,000 Inventory = 13,000 and Accounts Payable = 8,000 (balance 3,000 on May 3) 6 Collected all of 4/30/06 accounts receivable.

• Journal Entries, Adjusting Entries and Note Balance

  Payable 50,000 Oct. 1 Accounts Payable 50,000 The accounts payable is exchanged for notes payable Notes Payable 50,000 Oct. 1 Cash 50,000 Since it is a zero interest bearing note, the difference between the face value

• Prepare the current liability section

  126478 Prepare the current liability section Sample Company has the following selected accounts after posting adjusting entries: Accounts Payable $ 50,000 Notes Payable, 3-month 80,000 Accumulated Depreciation?

• Important information about Accounts and Notes Payable

  40,000 Interest Payable 2,100 The solution explains journal entries for transactions relating to accounts and notes payable

• Identify normal debit & credit balances to list of accounts

  depreciation n. accounts payable o. office equipment p. depreciation expense q. service revenue r. notes payable s. notes receivable t. supplies u. utilities payable v. consulting revenue w. interest receivable x. supplies expense y. salaries

• Notes Payable, Interest Payable, and Interest Expense

  51315 Notes Payable Post to the accounts Notes Payable, Interest Payable, and Interest Expense. --- P2-2A The following are selected transactions of Detroit Company. Detroit prepares financial statements quarterly.

• Computing Ending Account Balances

  Cash and Notes Payable accounts impacted. b). Cash increased; Notes Payable increased. c). Cash increased by $125,000; Notes Payable increased by $125,000. d).